home improvement contract
Whether youre planning an addition for a growing family or
simply getting new storm windows, finding a competent and reliable
contractor is the first step to a successful and satisfying home
improvement project.
Your home may be your most valuable financial asset. Thats
why its important to be cautious when you hire someone to
work on it. Home improvement and repair and maintenance contractors
often advertise in newspapers, the Yellow Pages, and on the radio
and TV. However, dont consider an ad an indication of the
quality of a contractors work. Your best bet is a reality
check from those in the know: friends, neighbors, or co-workers
who have had improvement work done. Get written estimates from several
firms. Ask for explanations for price variations. Dont automatically
choose the t bidder.
Home Improvement Professionals
Depending on the size and complexity of your project, you may choose
to work with a number of different professionals:
General Contractors manage all aspects of your project, including
hiring and supervising subcontractors, getting building permits,
and scheduling inspections. They also work with architects and designers.
Speciality Contractors install particular products, such as cabinets
and bathroom fixtures.
Architects design homes, additions, and major renovations. If your
project includes structural changes, you may want to hire an architect
who specializes in home remodeling.
Designers have expertise in specific areas of the home, such as
kitchens and baths.
Design/Build Contractors provide one-stop service. They see your
project through from start to finish. Some firms have architects
on staff; others use certified designers.
Dont Get Nailed
Not all contractors operate within the law. Here are some tip-offs
to potential rip-offs. A less than reputable contractor:
solicits door-to-door;
offers you discounts for finding other customers;
just happens to have materials left over from a previous job;
only accepts cash payments;
asks you to get the required building permits;
does not list a business number in the local telephone directory;
tells you your job will be a "demonstration;"
pressures you for an immediate decision;
offers exceptionally long guarantees;
asks you to pay for the entire job up-front;
suggests that you borrow money from a lender the contractor knows.
If youre not careful, you could lose your home through a home
improvement loan scam.
Hiring a Contractor
Interview each contractor youre considering. Here are some
questions to ask.
How long have you been in business? Look for a well-established
company and check it out with consumer protection officials. They
can tell you if there are unresolved consumer complaints on file.
One caveat: No record of complaints against a particular contractor
doesnt necessarily mean no previous consumer problems. It
may be that problems exist, but have not yet been reported, or that
the contractor is doing business under several different names.
Are you licensed and registered with the state? While most states
license electrical and plumbing contractors, only 36 states have
some type of licensing and registration statutes affecting contractors,
remodelers, and/or specialty contractors. The licensing can range
from simple registration to a detailed qualification process. Also,
the licensing requirements in one locality may be different from
the requirements in the rest of the state. Check with your local
building department or consumer protection agency to find out about
licensing requirements in your area. If your state has licensing
laws, ask to see the contractors license. Make sure its
current.
How many projects like mine have you completed in the last year?
Ask for a list. This will help you determine how familiar the contractor
is with your type of project.
Will my project require a permit? Most states and localities require
permits for building projects, even for simple jobs like decks.
A competent contractor will get all the necessary permits before
starting work on your project. Be suspicious if the contractor asks
you to get the permit(s). It could mean that the contractor is not
licensed or registered, as required by your state or locality.
May I have a list of references? The contractor should be able
to give you the names, addresses, and phone numbers of at least
three clients who have projects similar to yours. Ask each how long
ago the project was completed and if you can see it. Also, tell
the contractor that youd like to visit jobs in progress.
Will you be using subcontractors on this project? If yes, ask to
meet them, and make sure they have current insurance coverage and
licenses, if required. Also ask them if they were paid on time by
this contractor. A "mechanics lien" could be placed
on your home if your contractor fails to pay the subcontractors
and suppliers on your project. That means the subcontractors and
suppliers could go to court to force you to sell your home to satisfy
their unpaid bills from your project. Protect yourself by asking
the contractor, and every subcontractor and supplier, for a lien
release or lien waiver.
What types of insurance do you carry? Contractors should have personal
liability, workers compensation, and property damage coverage.
Ask for copies of insurance certificates, and make sure theyre
current. Avoid doing business with contractors who dont carry
the appropriate insurance. Otherwise, youll be held liable
for any injuries and damages that occur during the project.
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