(1)
Your Contractor should
carry general liability insurance. Avoid doing business with any company that is
uninsured. You may be held liable for any potential injuries and damages that
might occur during the course of any project.
(2)
Comparison shopping should be based on, reliability,
reputation, experience and price-value, not just the lowest price of all
proposals presented.
(3)
When comparing estimates, make sure each one is
based on (a) same scope of work, (b) same set of specifications, (c) the same
set of plans. This is especially true with major investment projects in the $50,000-$250,000
range (i.e., major remodeling, re-roofing, window & siding replacement, and
the like).
(4)
A well-written contract
should include the contractors name, address, phone and license number, if
required for that specific trade. The contract should also specify (a) payment
terms, payment schedule for the contractor, subcontractors (if any) and
suppliers, (b) an estimate start and completion date, (c) the cancellation
policy (if applicable), (d) how change orders will be handled. The contract
should spell out what will and will not be performed.
(5)
In many circumstances,
oral contracts are as enforceable as written agreements. Oral contracts related
to real property are an exception to this rule. Therefore, it is always best to
get verbal agreements added to your original written contract or agreement.
(6)
Avoid door-to-door
salespersons or work crews. Many companies have very specific door-to-door
marketing and sales plans and strategies, which many times are designed to
`close you' that day. You need time to check out contractors you do business
with and make certain they are legitimate.
(7)
Pay contractors by check
or credit card. Avoid on the spot cash payments. In fact, avoid all cash
payments, as there is no paper trail of payment to protect you. If a
representative of a company or even a manager of a company requests any form of
cash payment, this should be a major 'red flag' of caution to you as a
consumer.
(8)
Never pay the full price
upfront and make sure the contract spells out the payment schedule. Never sign
over an insurance check to a contractor until the work is completed.
(9)
Protect your home and valuables by locking up or
securing all valuables and always monitor workers in your home while they
perform work.
(10) Do not help contractors or their workers and do not lend
them your tools. If a worker is hurt while you are assisting (e.g., holding a
ladder) or is hurt using one of your tools, you may be liable via a 'tort
claim' by the worker or contractor.
(11) A
change order is a written agreement to change the work described in the
original contract. It could affect the project's cost and schedule. For
example, remodeling contractors require payment for change orders before the
work begins.
(12) Lien laws may allow unpaid subcontractors (if used by
the primary contractor) or suppliers to 'attach' your home through a “construction
lien.” That means potential subcontractors and/or suppliers could go to court
to force you to satisfy their unpaid bills from your project. Protect yourself
by asking the contractor, and any potential subcontractor, for a lien release
or lien waiver.
(13) Check
the progress of the work and do not make the final payment until you are
satisfied with the work and the contractor has furnished proof that all
subcontractors and construction liens have been paid off.
(14) Be sure that the contractor or company agrees in writing
that all work will conform to city, county and/or state building codes and
protocol.
(15) Always
hire companies that you can communicate with and have a permanent office
address. You want an established company with an office you can go to if you
ever need personal contact. Check out the address and how long they have been
in the area.
(16) Require that any company representative (regardless of
service category) consulting with you on your job, service or project,
completely understand every detail about their product and services, product
features and benefits, installation specifications, warranty information and
the like.
(17)
Have all parties that will be involved or have
an interest in the project at the initial consultations. Once the decision is
made, determine the key contact person with whom the contractor will
communicate.