 Research
Helpful Tips on Selecting the Right Contractor
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Resources: State
Licensing Boards
For larger projects, check the status of the contractor's
bond
In some states bonding is required for larger jobs financed
by lenders, contractors, or owners. Some bonds are designed
to protect you - against substandard work that does not comply
with local building codes. Bonds are not to assure the financial
or professional integrity of a contractor. Bonds can be obtained
from bonding companies for a percentage of the contact price.
Remember to recognize the bond fee as a cost of the project.
Bonds may be classified as:
- Contractor's License Bond - A bond with
a security company. Some states require licensed contractors
to have a cash deposit with the state. For example: The
state of California requires a security deposit of $7,500.00
of all licensed contractors.
- Performance Bonds - A bond that guarantees
the project's completion according to the building plans
and specifications.
- Payment Bonds - A bond that assures the
owner that no liens for labor and material will be filed
against the propertly
- Contractor Bonds - A bond that guarantees
both job completion and payment of all labor and material.
Verify that the contractor has workers' compensation and
liability insurance.
California law requires contractors with employees to have
workers' compensation insurance for property damage and personal
liability insurance. If a worker is injured working on your
property and the contractor does not have insurance, you as
the homeowner are responsible for any medical needs. Don't
allow your homeowner's insurance policy to become your contractor's
liability coverage.
Be specific of your requirements in a written contract.
Review your needs and to what degree of quality you are budgeted
for on the improvements. Quality, quantity, weight, color,
size, and name brands should be clearly stated on the contact.
Obtain accurate plans or blue prints. Approve the plans before
work is started. A written contact is highly recommended.
ONLY sign a contact if you fully understand all aspects of
the contract. Keep a copy of the contract for your records.
Ask questions! An essential key to a successful relationship
with your contractor and a successful project is communication.
Over communicate if necessary to ensure you get the results
you desire. If any changes arise, agree in advance that these
changes must be approved prior to the changes occurring in
writing. Agree that both the contractor and you sign the revision/amendment
to the contract. Allow extra time for the project for any
unforeseen changes.
Don't forget to include in the contract storage of materials
and debris, as well as cleanup and removal of debris and materials,
or any special requests to save unused material or old appliances.
Keep records of everything that pertains to the job! Include
pictures of progress, any letters or notes, contract including
changes, invoices and bills, and canceled checks.
Three-day cancellation period for a signed contract option
A lot of state's laws requires a contractor to give you a
written notice of your right to cancel a contract within 3
days of signing it, provided that it was solicited at some
place other than the contractor's place of business or appropriate
trade premise such as your home. If you choose to cancel the
contract, do this in writing by registered mail and also call
the contractor. After the contract is canceled, you may sign
another one with the same contractor or a different one if
you prefer. Check with your state, city or counties to confirm
the jurisdiction you reside have these laws to protect its
constituents. Should the jurisdiction you reside not have
a 3-day cancellation, you can always require it be in the
contract you sign.
Ask for Warranties in writing on the contract
The contact should also state the warranties for the labor
and materials including the duration of the Warranty. You
should also request the warranties offered by the manufactures
of the materials or appliances installed.
Consider the potential of liens
Again, for your larger projects, you should protect yourself
from liens against your home in the event a contractor does
not pay subcontractors or supplies. Local laws vary, but you
may be able to add a release-of-lien clause to your contract.
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Resources: State
Licensing Boards
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