 After you post your project and contractors
start to contact you with bids, it is very important to make wise decisions
regarding who you hire.
The truth is, most licensed contractors are
honest, hardworking and financially responsible. However, home improvement is a
top source of consumer complaints nationwide. By avoiding the following
mistakes, you will greatly reduce the chances of having a bad experience.
1. Choosing the Lowest Bidder
The biggest mistake consumers make is being
seduced by the lowest bid. Would you hire the cheapest surgeon in town to
operate on you or a member of your family? There is a saying, "Some of
the most expensive work you will ever pay for is cheap work."
Considering that your home is your biggest
investment, you should always think long-term when it comes to renovations,
additions or any kind of remodeling. Is saving a few dollars now really worth
risking substandard quality, especially if you spread the financial savings and
poor workmanship over 5, 10 or 20 years of living in your home? Another thing
to watch out for is contractors who purposely use low quotes to win the job and
then jack up the price later.
Your most important tool in evaluating the
cost of a project is the value of what you are getting for your money. Low
prices are usually a trade off for cutting corners in materials, workmanship or
warranty. Remember that most average floorings, paint jobs, tile installations
or other aspects of the project can look good when completed; the true test is
how will they hold up over the next 5 to 10 years? Did the painter use a
proper primer or just paint over things, something you won't realize until a
year later when the paint starts to peel? Did the carpet installer used a good
quality carpet with the proper under padding, or just the cheapest padding
available? These differences are usually the difference between a lower and a
higher estimate.
2. Not Knowing What You Want
Sounds silly doesn't it, but not really. Everyone
starts with a "visual" of the completed remodeling project. Put yours
down on paper. The more details you include, the better.
If you don't know what you want, you might
not like what you get. Also, if you change your mind and change the job halfway
through, the contract, including the price, will change also (Tip: it won't get
cheaper). Know what you want done as clearly as possible. You don't have to
know the details of each and every facet of the work, but you do need to have a
good general idea of your goals and expectations. Changes midway will keep
increasing the price, especially if completed sections of the project have to
be redone.
3. Not Getting It in Writing
Insist on a written contract. Insisting on
a clear contract isn't about mistrust, it's about insuring a successful work
relationship. The written contract is essential for your protection, as well as
the contractor's. The contract should be dated and include your name and
address, as well as the contractor's name, address, and phone number. It should
also contain a detailed description of the project, (the scope of work)
including plans, materials, model numbers (if applicable), quantities, colors,
and the approximate starting and completion dates. It should also outline how
changes in work orders will be handled and the notice required for
cancellation.
The contract must specify a payment
schedule, allowing you to schedule payments at different stages, tied to
completions of specific aspects of the project. Have a final payment due when
the project is completed to your satisfaction.
4. Giving an Excessively Large Down Payment
Avoid contractors who require large down
payments. A small deposit to schedule the work is fine; 10-30% is standard. If
a company needs a large down payment this can be a warning sign that all is not
right. Stable companies don't need their customer's down payments to pay for
materials, or worse, to pay for company overhead.
Pay by check. Write out the check to the
contracting company rather than to an individual. Never pay a contractor in
full before the work is completed.
5. Not Checking References
Check the references you've collected from
your interviews. Go directly to the source. Ask the contractor if you can visit
a current job site or look at a portfolio of completed work. Better yet,
request a list of names and phone numbers of recent customers and call them.
A good contractor will be happy to provide
you with dozens of written references. When speaking to the contractor's
customers, ask such questions as:
Did the contractor keep to the schedule and
the contract terms? Were you pleased with the work and the way it was done? Did
the contractor listen if you had a problem, and seem concerned about resolving
it? Did the contractor willingly make any necessary corrections? Would you hire
him again? Would you recommend him to others?
You may also wish to check the contractor
out with your local building department, trade association or union, local
consumer protection agency, and consumer fraud unit in your city. Call these
organizations to see if they have information about the contractor you are
considering.
Ask the contractor for the address of his
or her business and business telephone number, and verify them. A contractor
who operates a business out of the back of a pickup truck with a cellular
telephone may be difficult to find to complete a job or fix something that has
gone wrong after the last bill is paid.
6. Not checking a contractor's insurance coverage.
If a contractor says he has insurance
coverage for himself and any workers, he should be happy to show you
documentation from the insurance company. Don't expose your home owner's policy
to claims for contractor negligence. With home owner's insurance rates climbing
all over the country the last thing you need to do is have to make a claim for
no reason, when a simple verification of your contractors insurance could
protect you from it.
Ask about their General Liability
Insurance. A one-million dollar policy is now considered standard. Make sure he
requires the same coverage from any sub-contractors that will be working on
your home. Sub-contractors without insurance won't be covered under the general
contractors insurance and will default back to you.
Ask about Workers Compensation insurance.
Without it, if the contractor or any of his employees get hurt on the job site
they can go after you personally to pay for medical expenses. Imagine the
nightmare of a debilitating injury; you could lose your house for innocently
asking someone to work on it.
7. Not Asking Questions about How They Work
The importance of asking a potential
contractor about their work habits cannot be stressed enough. Ask questions
concerning how they perform their work, what time they start, how they protect
carpets, how trash and debris are handled, and whether they work straight
through to the completion of a project. The answers to these questions will
give you a clear picture of what type of contractor you are dealing with.
8. Not Verifying Whether the Contractor has Experience With Projects Like Yours
The more experience a contractor has with
the work involved in your project, the smoother, more efficient and even more
economical the process will be. Ask the contractor how many times he has
completed projects such as yours. What issues does he anticipate encountering
during your project? What procedures does he have in place to eliminate
problems if they arise?
9. No Guarantee
This is one of the most forgotten questions
for customers. You wouldn't buy a new vehicle without a warranty would you? Ask
about the warranty and ask for it in writing. Never accept a verbal warranty of
"If something breaks, don't worry, I'll fix it." A verbal warranty
will be worth the paper it is written on. Always insist on a warranty in
writing. The warranty should clearly spell out what is covered and what is not
and how long the warranty is in effect.
10. Not Insisting on Lien Waivers.
Anyone who works on your house should
provide you with a lien waiver that waives their claim to future payments for
the project. Typically a general contractor will provide waivers for all the
workers and for the businesses that supplied labor for the job. You don't want
to pay the final remodeling bill, yet leave yourself liable for payments to a
subcontractor or a lumber yard.
Contractor Related Articles:
How To Hire a Contractor
Tips Before You Sign a Construction Contract
Note: MyCanadianContractors.com offers these
informative articles as resources to help you understand better some
construction related issues. MyCanadianContractors.com does not warrant the
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