| As I say so frequently that I'm beginning to bore | | | | when the project is finished and the contractor is paid |
| myself, "most remodeling contractors are honest and | | | | in full. There are unscrupulous contractors who accept |
| reliable individuals who want to do quality work at a | | | | payment for a job and then do not remove the liens. In |
| reasonable price." Unfortunately, there are just enough | | | | most of these cases, the homeowner is not aware of |
| contractors out there (or people who claim to be | | | | the lien until some time later when trying to sell the |
| contractors) who take advantage of their customers | | | | home or take out a loan for further improvements. |
| that some reminders and tips are helpful if you want to | | | | When homeowners try to resolve the issue, the |
| do everything possible to protect yourself and your | | | | contractor claims that the bill or part of the bill was |
| property during home improvement. | | | | never paid and demands payment before removing |
| 1. Don't make assumptions about referrals. Exercise | | | | the lien. |
| the same due diligence in evaluating and checking out | | | | 6. Never do business with someone who comes to |
| all contractors. You might have friends or relatives, | | | | your door offering their services. |
| co-workers or neighbors referring you to contractors | | | | 7. Never pay a contractor the entire bill up front. Work |
| they have used with good results. Many people are | | | | out a payment schedule that reflects work completed, |
| also simply trusting recommendations from home | | | | and put the payment schedule in the contract. |
| improvement stores. Even when you are referred to a | | | | 8. Specify the quality of workmanship and the quality |
| contractor, check him or her out before you sign a | | | | of materials to be used in the remodel or addition in the |
| contract. Consumer Reports recently released findings | | | | contract. Not only should you specify materials quality, |
| from a study of people who hired contractors to | | | | you should check materials to ensure compliance with |
| whom they were referred by the two leading home | | | | the terms of the contract as they are delivered to the |
| improvement stores. Their survey indicated that people | | | | construction site. Insist that the costs of all building |
| who used these referrals had more problems and | | | | materials be specified. |
| were less satisfied with the work than people who | | | | 9. Include all job specifications in the contract. The |
| used other contractors. | | | | more specific the description of the work to be done, |
| 2. Build your remodeling budget in a way that creates | | | | the more protection you have. Job specifications state |
| a 20% cushion for unexpected surprises. Although the | | | | exactly what work is to be done, how it is to be done, |
| National Association of the Remodeling Industry | | | | the quality of materials to be used, when it is to be |
| suggests an allowance of 10% to 20%, I think you are | | | | complete, and that it must pass inspection. |
| safer to budget for a 20% cost overrun due to | | | | 10. Check all licenses, permits, proof of insurance, and |
| surprises. There are literally hundreds of things that can | | | | state or local certification before you hire a contractor |
| happen or that can be discovered once remodeling | | | | or subcontractor. Check to be certain the contractor |
| begins that will result in a cost overrun. It is not | | | | has or obtains all necessary permits, licenses and |
| uncommon, for example to discover termite damage, | | | | certificates. Check with issuing agencies or insurance |
| dry rot, damage from leaking pipes, outdated wiring, | | | | companies to confirm that insurance and licenses are |
| etc. My point is that you should not use your entire | | | | current. |
| budget on the basics. You will be much more | | | | 11. Insist that the contractor show you proof of bond |
| comfortable with your budget if you leave room for | | | | coverage for the total replacement cost of the |
| surprises. | | | | project. |
| 3. Get a contract — don't deal with a contractor on | | | | 12. Be sure the contract includes the appropriate |
| the basis of a proposal. If at all possible, get a contract | | | | information about how conflicts will be resolved, when |
| that states a final price for the work, not an estimated | | | | and how the contract will be or can be terminated, and |
| cost that can go up or down. Your contract should be | | | | that lien releases will be provided upon payment. |
| as specific as possible and as detailed as possible. It | | | | 13. If you give the contractor a key to your home for |
| should also contain some kind of warranty for both the | | | | use during the construction period, change the locks as |
| installation and the products or materials. You can also | | | | soon as construction is completed. |
| specify in the contract that all materials used will be | | | | 14. Take the necessary steps to protect your property |
| new materials and meet the standards outlined in the | | | | and your possessions. Put away all valuables in a safe |
| contract. It should also state that any changes made | | | | place. Define the construction area for everyone — |
| during the construction period will be authorized only by | | | | tell your family not to enter the area during working |
| written change orders that explain the difference in | | | | hours; define limits of access to the rest of your home |
| cost up front. If a contractor is unwilling to sign a | | | | for the work crew. Protect your landscaping by |
| contract stating the final price of the remodel, find | | | | covering shrubs if necessary and taking other steps to |
| another contractor. | | | | reduce accidental damage. Seal off the construction |
| 4. Know what your insurance covers and take out a | | | | area from the rest of the house to confine dust, etc. |
| liability policy if necessary. It is usually easy to call your | | | | 15. If you are remodeling an old home, make sure any |
| insurance agent and ask what is covered in terms of | | | | work with potentially hazardous materials is done |
| damage to your property, loss of property or | | | | under the safest conditions and that hazardous |
| possessions, and injury or death of a worker on your | | | | materials are completely removed from the work site |
| property during the construction period. You should | | | | immediately and disposed of as instructed by your |
| also be certain that the contractor carries workman's | | | | local government. Be sure any lead paint is properly |
| compensation insurance and liability insurance against | | | | removed; be sure any asbestos is removed and |
| injury or death of a worker and against damage or | | | | disposed of correctly; be sure old horse hair plaster |
| loss to your property or possessions. If you have any | | | | (that could contain arsenic) is disposed of properly. |
| concerns about adequate coverage, discuss it with | | | | These tips will help you protect your family, your |
| your insurance agent and consider taking out an | | | | property and the people working on your remodeling |
| additional policy during the construction period. | | | | project. Residential home improvement contractors |
| 5. Monitor all liens placed against your property during | | | | should be very willing to cooperate on all of these |
| construction (construction liens) by any contractor or | | | | points. |
| subcontractor and ensure that they are removed | | | | |