Home Improvement Professionals
Over my years in the home building and remodeling business, I have seen many people taken to the cleaners by dishonest contractors due to their naivety. Here are some general consumer tips for all home services regardless of the specific trade. I noticed an add which stated that in less than 5 minutes by filling out a simple form you can receive an estimate from several local home improvement contractors. It doesn’t work that way folks; its hard work and time consuming to find the right contractor or tradesmen for what you are trying to achieve. Your home is a big investment therefore you seek out home improvement professionals to assure that you will get the full value of this expendature.
Let me share with you several key points that you must include in your “due diligence” folder:
• If you don’t feel comfortable at the beginning, it will only get worse as the job progresses.
• Contractors should carry personal liability insurance as well as any other applicable insurance. Not only do you not want to be held liable for potential injuries or damages, consider this to be a “red flag” that he is either not a savvy businessman or he is considered a bad risk by the insurance companies. Either way, he is not someone you would want to trust to work on your home.
• Be sure the contractor pulls all applicable permits and follows through with inspections and receives a “CO” Certificate of Occupancy upon completion of the project.
• When comparison shopping, let the lowest price be the least considered; look at reputation, reliability, experience to be the deciding factors.
• Also when comparing estimates make sure they are apples to apples. In other words the estimates have to be based on the same scope of work as well as the same plans and specifications. Whether your improvement is $5,000.00 or $500,000.00, this must be your criteria.
• All agreements must be in writing using a proposal or construction contract. They must include the contractor’s name, address, phone and license number, payment terms, payment schedules, start and finish dates, allowance for change orders and how they will be handled. It’s not a bad idea to include a cancellation policy. Try to reduce all verbal agreements to writing; trust me it will save many problems down the road.
• Don’t be taken in by a door-to-door good old boy that claims he will make you an excellent deal. It is easy to get caught up in the emotion of the minute.
• Never pay the full price up front or sign over an insurance check until the work is completed. It is not uncommon for a contractor to ask for a deposit; however the amount must be negotiated. Keep in mind the contractor will have some out of pocket expense before he’s eligible for a draw. Never pay with cash, always pay with a check or credit card; you certainly want to develop a good paper trail of all transactions.
• Secure your valuables by removing them from the location or locking them up. Why create a problem that most likely can never be resolved.
• Don’t be a nice guy and give the contractor or his workers a helping hand. If anyone is hurt during this nice jester, you could find yourself liable in a court of law.
• Lien laws allow unpaid workers or suppliers to file a “mechanics lien” on your home. They will be able to go to court and force you to satisfy their unpaid bills whether you have paid the contractor or not. This happens more than you would expect, therefore protect yourself by asking the contractor for a lien release or lien waiver when a construction draw is funded.
In summary make sure you have inspected, approved, and are satisfied with the work prior to making final payment. Require the contractor to show proof that all workers and suppliers have been fully paid.
Category: Home Improvement, New Construction
