HIRING A CONTRACTOR
Making a choice
Your choice of a contractor is vital to the success of your community
project. Select him/her with care, as you would any other professional,
like a doctor or lawyer. You will find that good contractors are
everywhere. You just need to sort through all of the information
to narrow your list of prospects. Pay close attention to:
- Referrals are the best way to find a contractor. Ask your friends,
relatives, neighbors and business associates if they know anyone
that they would recommend.
- Job site signs in your neighborhood offer you the opportunity
to see a contractor in action. Talk to the homeowner about the
quality of his work.
- Articles in your local newspaper may feature a job under way
in your area, or the special expertise of a local contractor.
- Advertisements and direct mail solicitations can help you find
a contractor, but remember to check his references carefully.
Buyer beware
Most contractors are honest professionals. However, as in any buying
situation, it's your job to be on the lookout for the unscrupulous
few. Here's what the U.S. Department of Housing and Urban Development
(HUD) warns are some of the danger signs of fraud*:
- Fantastic promises or wild deals
- High-pressure sales tactics or threats to push you into signing
up on the spot
- Attempts to scare you into signing for "urgent" repairs
- Offers to consolidate your existing loans through a home improvement
contractor
- Trial purchases, or guarantees of significant discounts, if
you allow your home to be used as a "demo"
- Offers of a "bargain" price using "leftover materials"
from a contractor who makes unsolicited phone calls or visits
to your home
Reprinted from "Fixing Up Your Home and How to Finance It",
U.S. Department of Housing and Urban Development, 1995.
Do your homework
The Council of Better Business Bureaus offers these suggestions
for checking out prospective contractors*:
- Find out if the contractor is a member of a professional association
-- such as the National Association of the Remodeling Industry
(NARI) or the National Association for Home Builders (NAHB) --
that has standards or a code of ethics for members
- Call your local Better Business Bureau or consumer affairs office
to find out how long the contractor has been in business and whether
or not any complaints have been filed against him
- Check with your local housing authority (state, county or city)
to see if the contractor is required to meet certain licensing
or bonding criteria in your area and then make sure that he is
in compliance
- Request a copy of the contractor's certificate of insurance
for workers' compensation, property damage and personal liability
in case of accidents, and call the carrier to verify the information
*Reprinted from "Tips On...Home Improvement", The Council
of Better Business Bureaus, Inc. 1997.
Trust your instincts
Finally, don't underestimate the power of personality. As you conduct
your interviews, try to get a feel for how you might get along with
each of your contractors. And trust your instincts! Keep in mind
that, for the duration of your project, this could be the person
that you will greet first thing in the morning and as you arrive
home from work each night. He and his crew will be in your "space"
for a large part of the day. The two of you must be able to communicate
successfully with one another and deal appropriately with problems
as the project goes along. It's worth your effort to get to know
him!
Evaluating the bid
As you evaluate bids from your prospective contractors, you might
want to consider the findings of a Consumer Reports study on home
improvements. In a survey of nearly 12,000 homeowners that obtained
multiple estimates, the 40% that accepted the lowest bid were less
satisfied overall with their projects than those who were willing
to pay more for the job*. Make sure that your final choice of a
contractor is based on the "sum of all parts" -- including
professionalism, an understanding of your vision for the project,
and a compatible personality -- instead of on a single factor such
as price.
* Reprinted from "Remodeling Without the Hassle," Consumer
Reports, 1997.
Contracts
Once you have chosen a contractor and agreed upon the final plans
for your home improvement project, it is critical that you clarify
and confirm all of the particulars with a written contract. The
primary purpose of this is to provide protection for both you and
your contractor in case of a dispute. Additionally, a contract will
help to minimize misunderstandings and avoid any confusion about
the details of the job. Here's what should be specified*:
- The contractor's name, address and telephone number (and, if
applicable, professional license number)
- A thorough description of the work to be completed
- A list of any specifications on all materials that will be used,
including brand name and product, quantity, size, and color
- The agreed-upon starting and completing dates
- The total cost of the job, with a breakdown of labor and material
costs
- A payment schedule (and cancellation penalty if applicable)
- Any warranties covering materials and workmanship (one year
is the standard industry minimum)
- Acknowledgment that you have carefully studied and approved
the plans
- Details of how the contractor will protect your personal property
and clean up during or after completion of the job
- A policy for any changes to the plan during the course of the
project
- Terms outlining the application for and compliance with any
building permits required for the job
- A release-of-lien clause to protect yourself in the event your
contractor does not pay his subs or suppliers (otherwise, you
could be held liable)
- The finished contract should be carefully reviewed by both you
and your contractor to be certain that you fully understand all
of its terms and conditions before signing. Make sure that it
is complete. Do not sign the contract if you notice that a specific
clause or item is missing or if you disagree with any of the terms.
And don't panic. If you decide for any reason that you don't want
to go through with the job, you have the right to cancel the contract
within three business days of signing it (preferably via telegram
or certified mail). Your contractor will let you know about your
cancellation rights and provide you with any forms you might need.
* Reprinted from "Signing the Dotted Line...", National
Association of the Remodeling Industry, 1997 and "Tips On ...Home
Improvements", The Council of Better Business Bureaus, Inc.,
1997.
Permits
It's best to let your contractor apply for the appropriate building
permits for your home improvement project in his name*. That way,
if his work does not pass inspection, you won't be held financially
responsible for correcting it. But you should be aware of what permits
are required.
The Council of Better Business Bureaus suggests that you check with
your local department of licensing and permits to find out about
this before the job starts.
Once the job in under way, it is the contractor's responsibility
to call for inspections that will verify whether or not you are
in compliance with local codes and regulations.
*Reprinted from "Tips On...Home Improvements", The Council
of Better Business Bureaus, Inc. 1997.
The unavoidable
As with any construction project, the remodeling your contractor
performs might disrupt your daily routine for a few days or weeks.
Here are some of the things you can expect as the contractor works
on your project:
- Dust and dirt
- Loud noises from construction equipment
- Out-of-commission plumbing or electricity
- A driveway blocked with trucks and materials
- Noxious odors or paint fumes
The prize
Let's assume you've done your homework and made your choices. You've
got your plan, your contractor, and a signed contract. Your job
is over...right? Not quite.
You -- and your family -- will need to be prepared for any disruptions
that might occur as a result of your home improvement project. Talk
to your contractor to see if he has any suggestions about what you
can do ahead of time to be as ready as possible for the day he and
his crew arrive.
Depending on the scope of the project, You'll need to allow yourself
time to move your valuables out of harm's way and reorganize any
items that won't be accessible during the course of the project.
If your contractor will not be your day-to-day contact, make sure
that he identifies and introduces you to the person in charge of
the project. Ask him what you can expect regarding his work habits
and those of his crew or subcontractors, such as daily start and
finish times. Find out his policy on radios, foul language, and
daily clean-up duties. And check to see if you'll need to arrange
for parking for his trucks. Any detail that you can anticipate and
plan for ahead of time will help to make you feel more relaxed as
the job progresses.
Temporary inconveniences are a given with any home improvement
project. Just remember to keep your sense of humor and your eye
on the prize. As each day passes, you're one step closer to the
beautiful finished job.
Interviewing
Just as you comparison shop for products, you should ask for bids
from at least two or three reputable contractors. (To be fair, have
them base their bids on the same specifications and materials.)
Allow yourself the time to sit down and discuss the details of your
home improvement project with each prospect. Be prepared to ask
the questions that will help you determine whether or not this is
a reliable professional who will be easy to work with and able to
complete the job to your satisfaction. And don't worry, a true professional
will have no problem answering your questions and will most likely
be pleased that he is dealing with a careful and informed consumer.
He wants the project to go as well as you do.
Here are some of the questions you should ask in each interview:
1. What is the full name and address of your company?
This is seemingly minor detail, but it can tell you a lot about
the contractor, including how convenient his base of operation is
to your home. Ask for a street address if a post office box is given.
2. How long have you been in business?
Of course, a well-established business is ideal. But everybody
needs to start sometime. If a company hasn't been in business for
more than three years, references will be especially helpful to
you in checking it out.
3. Are you a licensed contractor?
Not all cities/states require contractors to be licensed; you'll
need to check with your local licensing authority to see if yours
does. And don't be fooled -- a contractor may have a business license
(for tax purposes), but this has no bearing on his competence as
a contractor.
4. Do you have any special training?
Many contractors participate in training programs offered by professional
associations, manufacturers, and suppliers, earning special certifications
and other credentials. Such efforts are an indication of professionalism
as well as skill level.
5. Do you carry insurance?
A contractor should carry comprehensive liability insurance and
workers' compensation insurance to protect you in the event of an
accident. (If a worker is injured on your property, you might be
held liable unless he is covered by workers' comp!) Ask for proof
of general liability and workers' comp coverage and then verify
it with the insurance carrier.
6. Can you provide me with references from previous jobs?
Ask the contractor if he is working on any jobs that you might
be able to visit or if he has photos of completed projects. More
importantly, get a list of names and phone numbers of recent customers
- and call them! Click here to find out what you should ask your
contractor's customers. You'd be surprised how many people don't.
7. Do you offer a warranty on workmanship?
Typically, contractor workmanship warranties are for one year or
more, but the length of the warranty doesn't matter so much as the
intent and ability of the contractor to stand behind his work. (You
may also want to ask whether or not the contractor will provide
you with manufacturers' warranties for the materials he'll be using).
8. How have you handled previous customer complaints?
The point of this question is not so much to focus on the complaint,
but rather, how it was handled by the contractor. Ask him to talk
to you honestly about a job that involved a complaint. Also, find
out if he has ever lost a job-related court case or had his contractor's
license suspended, and why. Again, be sure to contact the Better
Business Bureau to find out if any complaints have been filed against
him.
Ask the customers
According to the National Association of the Remodeling Industry,
these are the questions that you need to ask your contractor's references*:
- Were you able to communicate with the contractor?
- Were you pleased with the quality of his work?
- Were you satisfied with his business practices?
- Did the contractor begin work on time?
- Was the job completed on schedule?
- Did the contractor fulfill all terms of your agreement?
- Did the contractor stay in touch throughout the project?
- Were the final details completed in a timely fashion?
- Would you use this contractor again without hesitation?
* Reprinted from "The Master Plan for Professional Home
Remodeling", National Association of the Remodeling Industry,
1995.
|