Common Mistakes Consumers
Make When Hiring A Contractor
Most licensed contractors are competent, honest, hardworking and financially responsible. However, home improvement is a top source of consumer complaints nationwide. By avoiding these mistakes you will greatly reduce the chances of having a bad experience.
Choosing The Lowest Bidder
According to Consumer Reports- The biggest mistake consumers make is "Being seduced by the price alone." Would you hire the cheapest surgeon in town to operate on your family member? Or, Would you want the best surgeon in town? There is a saying, "Some of the most expensive work you will ever pay for is cheap work." Consider that your home is your biggest investment, and you should always think long term on home improvement or new construction and also consider the effects that saving a few dollars now will have over 5,10 or 20 years of living there. Some contractors use low quotes to get the job, then jack up the price later. Make sure you understand what is included in the proposal. If you are comparing proposals from different contractors, Do they both include everything? Is it a guaranteed price, or just an estimate that could lead to extra charges? Ask questions if you are unsure!
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 on materials, workmanship or warranty. Remember that most average paint jobs, tile installation or other aspects of the project can look good when first completed; the true test is how they will hold up over the next 18 months, 5 years, 10 years. Did the painter use a proper primer or just paint over things ensuring in a year the paint will begin to peel? Did the tile setter use the proper underlayment or just tile over the problem, ensuring that the grout will begin cracking next year? These differences are usually the difference between a lower and a higher estimate.
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 on materials, workmanship or warranty. Remember that most average paint jobs, tile installation or other aspects of the project can look good when first completed; the true test is how they will hold up over the next 18 months, 5 years, 10 years. Did the painter use a proper primer or just paint over things ensuring in a year the paint will begin to peel? Did the tile setter use the proper underlayment or just tile over the problem, ensuring that the grout will begin cracking next year? These differences are usually the difference between a lower and a higher estimate.
Not Getting It In Writing
Insist on a written contract. The contract should be dated and include your name and address, as well as the contractors name address and phone number. It should also contain a detailed description of the project and a payment schedule. The should allow you to schedule your payments at different stages tied to completions of specific aspects of the project.
Too Large Of A Down Payment
Avoid contractors that require large down payments. A small deposit to schedule the work is fine, 10% is standard. If a company needs a large down payment before work begins, this can be a warning sign that all is not right. Stable companies don't need a lot of money down to begin work. Other warning signs, being asked to write a check to the contractor personally instead of the company, or being asked to pay cash.
Not Checking References
A good contractor should be able to provide you with many references. When speaking to the contractors customers, ask such questions as:
~ Did the contractor keep on schedule and to the contract terms?
~ Were you pleased with the way the work was done?
~ Did the contractor listen to you 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,consumer protection agency or your city's district attorney's office, and the Better Business Bureau. 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 location and the business phone number, and verify them.A contractor who operates a business out of the back of a pickup truck with a cellular phone may be difficult to find to complete a job or fix something that has gone wrong after the last bill has been paid.
~ Did the contractor keep on schedule and to the contract terms?
~ Were you pleased with the way the work was done?
~ Did the contractor listen to you 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,consumer protection agency or your city's district attorney's office, and the Better Business Bureau. 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 location and the business phone number, and verify them.A contractor who operates a business out of the back of a pickup truck with a cellular phone may be difficult to find to complete a job or fix something that has gone wrong after the last bill has been paid.
Not Knowing What You Want
Sounds silly doesn't it? But not really. 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- the price will change (Hint: It won't get cheaper). Know as clearly what you want done as possible. You don't have to know every detail, but at least a general idea. Changes midway will keep increasing the price, especially if completed sections of the project have to be redone.
Not Checking A Contractors 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 homeowners policy to claims for contractor negligence. With home owners insurance rates climbing all over the country the last thing need is to 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 from any sub contractors working on your home. Ask about Worker 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 bills. Imagine that nightmare, you could lose your home because you didn't hire an insured contractor.
Ask about their General Liability Insurance. A one million dollar policy is now considered standard. Make sure he requires the same from any sub contractors working on your home. Ask about Worker 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 bills. Imagine that nightmare, you could lose your home because you didn't hire an insured contractor.
Not Insisting On Lien Waivers
Anyone who works on your home should provide you with a lien waiver upon payment,that waives their claim to future payments on the project. Typically a general contractor will provide lien waivers from sub contractors and suppliers. You don't want to pay the final bill, yet leave yourself liable for payments to a subcontractor or lumberyard.
Not Asking Questions About How They Work
I can't stress enough how important this information can be to you. Ask question such as: Will the contractor be on site to supervise my project? Is he going to hire subcontractors to do all the work? What time will they start? How will you protect my floors? How will trash and debris be handled? Where will you need to park equipment? Will you stay on my project until it is completed? The answers to these questions will give you a better picture of what type of contractor you are dealing with.
Not Asking Question About Experience On Projects Similar To Yours
The time for a contractor to experiment or get on the job training is not on your project. The more experience the contractor has with the work involved in your project, the smoother the project will go. Less unforeseen problems, less delays, less inconvenience. Ask the contractor how many projects like yours they have done. What issues does he believe he may run into on your project? What procedures does he have in place to eliminate or deal with problems that may arise?
Don't 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 happen to have materials left over from a previous job
~ Only accepts cash payments
~ Does not have their business name on their vehicle
~ Pressures you for an immediate decision
~ Ask you to pay for the entire job up-front
A less than reputable contractor:
~ Solicits door to door
~ Offers you discounts for finding other customers
~ Just happen to have materials left over from a previous job
~ Only accepts cash payments
~ Does not have their business name on their vehicle
~ Pressures you for an immediate decision
~ Ask you to pay for the entire job up-front
The "Home Improvement" Loan Scam
A contractor call or knocks on your door and install a new roof or remodel your kitchen at a price that sounds reasonable. You tell him your interested but can't afford it. He says no problem- he can arrange financing through a lender he knows. You agree to the project, and the contractor begins work. At some point after work begins, you are asked to sign a lot of papers. These papers may be blank or you may be rushed to sign before you fully understand what you are signing. You sign the papers, Later you realize that the papers you signed were a home equity loan. The interest rate, point and fees seem very high. To make matters worse, the work on your home isn't done right or hasn't been completed, and the contractor, who may have been paid by the lender, has little interest in completing the work to your satisfaction.
You can protect yourself from inappropriate lending practices. Here's How:
Don't:
~ Agree to a home equity loan if you don't have enough money to make the monthly payments
~ Sign any document you haven't read or that has blank spaces to be filled in after you sign
~ Let anyone pressure you into signing a document
~ Deed your property to anyone. First consult an attorney, a knowledgeable family member or someone you trust
~ Agree to financing through your contractor without shopping around and comparing loan terms
You can protect yourself from inappropriate lending practices. Here's How:
Don't:
~ Agree to a home equity loan if you don't have enough money to make the monthly payments
~ Sign any document you haven't read or that has blank spaces to be filled in after you sign
~ Let anyone pressure you into signing a document
~ Deed your property to anyone. First consult an attorney, a knowledgeable family member or someone you trust
~ Agree to financing through your contractor without shopping around and comparing loan terms
More Tips For Choosing A Contractor
If you are thinking about renovating your house, you will most likely need to hire a contractor to do the work. There are several things that you need to look at before you hire a contractor to work on your house. This is a very important choice and one that will cost you money, so you want to make sure you make the right decision. Here are some tips to help you choose the right contractor to work on your home.
You will need to actually check the contractors references. Just because they give you a list of references doesn't mean they did a good job for them. Ask the contractor for references that pertain to the work that you want done on your house. When you call a reference, ask them not only if they were happy with the work, but also how long it took and if it stayed on budget.
Choose a contractor that communicates well. You want a contractor that will let you know just how long you may be without water or how long the room may stay messy. Have them draw up a realistic schedule and stick to it. Ask them what type of permits and ordinances will be needed and how long it will take. You do not want to be set back because your contractor failed to get a required permit or inspection. You also need to ask about the contractor's liability and workman's comp insurance, what will the payment schedule be and how any changes or problems will be handled.
Before you choose a contractor, make sure you have the specifics on what you want. Most contractors will bid on the scope of work and if they don't have the specifics, the estimate might be off. Let them know the exact windows you want, or the exact paint or hardware so they can write a more complete estimate for the work.
Beware of low-ballers. If a contractor is giving you an estimate that is 30% or more below the others, it raises a red flag. Some things are to good to be true. Many low-ballers will charge you an arm and a leg for "unforeseen" costs that they may come across, which in turn may cost you more. Also, some low-ballers are scam artists, they will take take a deposit from you and you will never see any work done by them. A way to avoid this is to contact the Better Business Bureau and check out any contractor who may work for you.
Before you decide on a contractor, ask about the team that will be working on your house. Ask who the construction supervisor will be and ask for references on that person also.
A big name company does not always mean good service and work. Usually the big companies are worse than the small family companies. In big companies, you are just another name and another job.
You will need to actually check the contractors references. Just because they give you a list of references doesn't mean they did a good job for them. Ask the contractor for references that pertain to the work that you want done on your house. When you call a reference, ask them not only if they were happy with the work, but also how long it took and if it stayed on budget.
Choose a contractor that communicates well. You want a contractor that will let you know just how long you may be without water or how long the room may stay messy. Have them draw up a realistic schedule and stick to it. Ask them what type of permits and ordinances will be needed and how long it will take. You do not want to be set back because your contractor failed to get a required permit or inspection. You also need to ask about the contractor's liability and workman's comp insurance, what will the payment schedule be and how any changes or problems will be handled.
Before you choose a contractor, make sure you have the specifics on what you want. Most contractors will bid on the scope of work and if they don't have the specifics, the estimate might be off. Let them know the exact windows you want, or the exact paint or hardware so they can write a more complete estimate for the work.
Beware of low-ballers. If a contractor is giving you an estimate that is 30% or more below the others, it raises a red flag. Some things are to good to be true. Many low-ballers will charge you an arm and a leg for "unforeseen" costs that they may come across, which in turn may cost you more. Also, some low-ballers are scam artists, they will take take a deposit from you and you will never see any work done by them. A way to avoid this is to contact the Better Business Bureau and check out any contractor who may work for you.
Before you decide on a contractor, ask about the team that will be working on your house. Ask who the construction supervisor will be and ask for references on that person also.
A big name company does not always mean good service and work. Usually the big companies are worse than the small family companies. In big companies, you are just another name and another job.
Why Its In The Homeowners Best Interest To Let The Contractor Supply Materials for The Project
This is one of the most contentious issues we've come across in the past few years.
Project owners want to buy the materials for their project for a number of reasons: They don't trust the contractor will buy the right ones, they think they can save money by doing it themselves, they want to control the money- Often this is symbolic of a deeper distrust of the contractor.
Well guess what, this is a big mistake- In every instance we have observed this phenomenon two issues have consistently raised their ugly heads.
1. The project owner cannot enforce the project schedule. Yep, when the project owner buys things, the contractor has no obligation to maintain their delivery schedule for the project. If anything doesn't arrive on time, they simply pass the buck on to the project owner.
2. The contractor can avoid responsibility for hidden defects. This is the more serious of the two. If during the warranty period an issue emerges and it transpires that the homeowner bought the cement which is causing their ceiling to crack, then the contractor is justified in refusing to take responsibility for fixing it under the premise that the project owner bought the wrong cement.
Project owners want to buy the materials for their project for a number of reasons: They don't trust the contractor will buy the right ones, they think they can save money by doing it themselves, they want to control the money- Often this is symbolic of a deeper distrust of the contractor.
Well guess what, this is a big mistake- In every instance we have observed this phenomenon two issues have consistently raised their ugly heads.
1. The project owner cannot enforce the project schedule. Yep, when the project owner buys things, the contractor has no obligation to maintain their delivery schedule for the project. If anything doesn't arrive on time, they simply pass the buck on to the project owner.
2. The contractor can avoid responsibility for hidden defects. This is the more serious of the two. If during the warranty period an issue emerges and it transpires that the homeowner bought the cement which is causing their ceiling to crack, then the contractor is justified in refusing to take responsibility for fixing it under the premise that the project owner bought the wrong cement.