Reaching the decision to update your house is
the easy.
The hiring of a reliable contractor to accomplish
your dream renovation may not be. Unfortunately, scam artists frequent the industry, leaving in their wake unfinished or poorly executed projects and homeowners little to no hope of recovering payment.
Recognizing
the scam
Be wary of so-called contractors knocking on
your door to present their services. Most reliable businesses do not.
A contractor of merit needs to view the
project, like a garage needing painting or the bedroom with the bump-out bay
windows. Anyone who figures a price blind is probably thinking how to rob you
blind.
If a contractor uses hard sale techniques to
get an immediate verbal okay or a signed contract, smile, say thanks, and close
the door. Any professional will give a potential client at least a week to
consider a bid.
Smacking of fraud are offers to lower the
price with other jobs’ leftover materials or for cash-only payments. There is a
possible use of stolen goods and the desire to avoid tax payments.
Where
are honest contractors?
Find the contractor who will provide
expertise at a fair price through word-of-mouth.
Ask the opinion of those you respect from
neighbors to friends and family. If the job went well, they will tell you. If not,
your search time needs to include time to get an earful of grief. At least you
will definitely know whom to avoid.
Most local building departments have lists of
contractors. Do not expect recommendations or warnings, but most legitimate
businesses are not going to file their information with local government
agencies.
The Better Business Bureau lists over 100,000
general contractors. Alphabetic ratings result from a contractor’s willingness
to resolve a customer’s issue.Do not depend too heavily on the opinions found on numerous consumer websites. Unfortunately, many resort to having fictional favorable reviews placed on their sites. One, Angie’s Lists, says its reviewers are never anonymous. That said, on Craigslist, and other sites, jobs for compensated reviewers pop up frequently.
Navigating
the bid process
Call at least three contractors for bids.
Each needs to contain the exact same
information including the types and brands of materials and appliances used.
Rather than seeking references, ask for
addresses of current job sites.
Go straight to the homeowner, introduce
yourself as a potential client of their contractor, and ask direct questions.
·
Is
the project keeping on schedule and if not is it a problem with the contractor’s
scheduling or an unforeseen situation like weather?
·
Has
the contractor kept to their original bid without resorting to substandard
products? The latter question is especially important when evaluating the
lowest bidder. To your
·
Does
the contractor respond to phone calls/texts/emails in a timely manner?
Ask to see proof of their insurance. At
minimum, a legitimate contractor has worker’s compensation on all their
workers.
Constructing
a contract
Once comfortable with your selection, draw up
a contract with all the project’s components in writing. Relying on verbal
agreements could mean major future problems. Contract templates can be found on the website of the Associated General Contractors of America.
List start and end dates. Be sure to include materials
used, payment schedules, and budget. The latter can change should material costs
rise, like lumber, or specialty items such as an appliance, be upgraded. Avoid nasty
surprises by having both parties agree to sign change orders prior to any
adjustments.
Remember to include lien waivers in the contract.
Periodically, have the contractor produce them as proof of payment to
subcontractors. This protects you from subcontractors who did not rightfully suing
for compensation, regardless if the contractor neglected to compensate them.
Typically, contractor payments occur periodically
during the project. Some ask for a down payment ranging between five to ten
percent of the entire bid to buy materials. On large projects, progress
payments occur after significant intervals like demolition or a major
installation. Final payment comes with assurance every item in the contract has
reached the homeowner’s satisfaction.You might want to hire a lawyer to go over a contract before signing it.
Communication
is the key to success
Be clear on everything – even when confused.
If unknown acronyms or phrases are used, ask –unembarrassed - for a better definition.
Never leave any request to a loose interpretation.
Clarity among all parties means fewer problems and less chance of costly
changes.
Make sure your modes of communications mesh.
If texting is your choice, however your contractor prefers voice mail settle on
one before the project begins.
Finding the right contractor keeps your
project and your sanity intact.