Things you should know before hiring a contractor
Is your contractor licensed? – Does he have insurance?
Did
Homeowners are getting ripped off because they don’t know how to hire a contractor or how to do background checks. The price is not always the best way to hire a contractor. Many of the nightmare stories that you hear about regarding a
READ – THINK – DO IT
Hiring a Professional
One of the most important, yet daunting decisions to be made during a home building or remodeling project involves selecting the right professionals. It is a known fact that the more time you put into planning and selecting the professionals, the less amount of problems you will run into during the process. Depending on the size and difficulty of your project, you may choose to work with a number of different professionals.
In today’s world of home improvement, there are several unique design professionals that should be carefully interviewed for your project. You may find that you want one person to build your home, but another to design it. Some firms may be equipped with the proper professionals to take on the entire job. Specific questions should be reserved for your interviewing process. These questions will ensure that you are hiring the correct designer/builder for your project.
If they are a local contractor, are they licensed and registered with the state?
How long have they been in business?
Do they carry insurance? If so, what type?
Can they provide recent, reliable references?
Are they familiar with your budget?
Do they understand your time and availability?
Do you enjoy their personal taste revealed through past projects?
How many projects similar to yours have they completed in the last year?
It is important to understand the different kinds of home builders and remodeling professionals and what they specialize in. You want to make sure that you are hiring the unique home builder and design professional that is familiar with your project and can suit your needs the best. Keep in mind, the title of the professional is not as important as how well the individual understands your project and fits your style.
Designers: Offering expertise in specific areas of the home, such as an interior designer and kitchen and bathroom designers. Also, residential designers are common for those who need help with interior space planning. Always make sure to check for design degrees and certifications.
Architects: Licensed in the art of designing, planning and overseeing the construction of buildings. They are the most highly trained design professionals, for a college degree and state certification is mandatory.
General Contractors: They work with designers and architects. General contractors are responsible for overseeing and managing all aspects of the building and remodeling project. They will also hire and supervise two to three subcontractors, specializing in different trades.
Design/Build Contractors: This approach has become popular in recent years because design/build contractors are responsible for both design and construction. They will be working on your project from start until
Specialty Contractors: This type of contractor is responsible for installing specific products, such as kitchen and bathroom fixtures.
Structural Engineers: Required for any structural changes to an existing building. They have the ability to design and analyze structural aspects including the analysis of a building’s proposed structure, or existing structure, to verify that the method of construction is sufficient to withstand local weather patterns, earth movements, soil types, wind speeds, etc.. Also, structural engineers must have a college degree in civil, mechanical, or structural engineering.
Table of contents:
- Always hire licensed Contractors.
- Don’t sign a contract on the spot.
- Ask for a State Contractors License Number.
- Ask to see a Drivers license and log the number.
- Never pay Cash for a down payment.
- Don’t allow commencement of work without a signed contract.
- Always do a background check on your Contractor.
- Review your contract thoroughly.
- Execute Lien releases throughout the project.
- If a deal sounds
to good to be true, then it probably is.
Orange County Construction
-How to hire a Contractor-
Introduction
This guide to “Choosing a Contractor” has been designed to help
The information in this book is powerful and if used correctly, it can save you “the owner” time and money. The statistics are unbelievable. Good people that trust in their contractors
People are generally trusting in their nature and have little reason to believe that a professional would lie to them, but in
Home improvements can rate in the top five, as far as the largest investments that most people make. Wouldn’t it be nice to invite contractors into your house and be able to speak intelligently with them and to be able to spot a con artist? Just as there is in any business, there is good and bad. and most licensed contractors work hard to make their business prosper, but the bottom line is “BUYER BEWARE.”
If you could afford an attorney to represent you in a legal
Ten Basic Rules
- Always hire “licensed Contractors”.
- Don’t sign a contract on the spot.
- Ask for a State Contractors License Number.
- Ask to see a Drivers license and log the number.
- Never pay Cash for a down payment.
- Don’t allow commencement of work without a signed contract by both parties.
- Always do a background check on your Contractor.
- Review your contract thoroughly.
- Execute Lien releases throughout the project.
- If a deal sounds
to good to betrue, than it probably is.
Extra Items To Consider
- Insurance
- Workers Comp. Ins.
13 Referrals 14. Bond
15 Names and License numbers of subcontractors.
16 Names of material suppliers.
17 Don’t accept a P.O. Box # for an address on a contract.
18 The most important one of all. If you don’t feel comfortable with the detail that is in your contract, then don’t sign it. Hire a consultant to review the contract for you and make the changes that are necessary to assure you that
Contents of a Contract
This is the area that creates more conflicts between Home Owners and Contractors. A contractor should submit for proposal a detailed contract with a scope of work section and a complete break down of work that is to be done and the different types of materials that are to be used. Read the following information and refer back to this section when signing a contract or negotiating.
The most common phrase used in this industry that gets Home Owners into trouble is ” as per plans “. If
EXAMPLE [ Foundation. ] Pour Aprx. 8 yards of concrete “as per plans”.
[ Framing ] Frame addition “as per plans”.
[ Electrical ] Install all plugs “as per plans”.
A lot of times the architect will leave what’s known as (Typical Items) out of a set of
Just to name a few of the items that are commonly not noted on plans are;
(Uffer rod, outside receptacles, dedicated circuits, finish lumber such as moldings and shelving, window schedules, door schedules, hardware schedules, roofing materials, lighting, phone jacks, TV jacks, cast iron plumbing in
A contract should contain at least the following, if not more. The name and addresses of the Owner and the Contractor, Phone numbers of both parties (day and night numbers), Civil code provision 1689.7 Notice of cancellation, A start and completion date, A total price in writing and in numbers, A place for both parties to sign and date, A reference sheet containing names and phone numbers of Recent jobs, A detailed scope of work section, Allowances, Terms and conditions and possibly a little information about the contractor and his or her company.
Definitions of the Ten Basic Rules
- Always hire a “Licensed Contractor”
You should always hire a contractor that is licensed by the state that you reside in. If a contractor is licensed, then he has created a trail for you to check on. Most professionals that have taken the time to create a legal business and acquire the proper documentation, have better intentions than others that run businesses illegally. Most licensed contractors will set up a decent progress payment schedule for the project and collect
- Don’t sign contracts on the spot
After digesting all of the information that is in this book, how can anyone sign a contract on the spot? Most of the time when a person signs a contract on the spot, it’s because he/she really thinks that they are getting the deal of the century. Think of all the times that you didn’t buy something when you wanted to, and then found it for less the next week. You don’t go to a car dealership and just because the
- Ask for a State Contractors License Number
This number, by law, has to be on the contractors calling cards, contracts and any advertisement that they produce. Most contractors are proud of their license and display it prominently. If they hide this from you, you’ll only have to wonder what else they’ll hide. Don’t be afraid to ask for this information. If the contractor is honest, and he wants to do business with you, he will offer the information to you on the spot with a smile. It’s a good idea to get this number before he comes to visit you so that you can verify it with the license board. The number for Orange County is (714) 994-7430, use it.
- Ask to see a Drivers License and log the Number
There are Three main reasons for copping down their license number;
#1 You need to verify that the person that your speaking to is
#2 If the contractor does not want to produce his
#3 Some younger contractors have been known to use their fathers or uncles license number. The last name on the license will be the same, so you need to make sure that your entering into a legal contract. You will verify this with the License Board.
- Never pay Cash for a down payment
If you pay cash for a down payment, there may be a chance that you’ll never see that money again. A big red flag should pop up in front of your eyes if
- Don’t allow commencement of work without a signed contract by both parties.
Don’t ever allow this to happen to you. If you don’t have a contract, then exactly what is the guy in the front yard building for you? Even though you think that the both of you have a complete understanding of what needs to be done, your human, you can forget or misunderstand each other. How convenient do you think that it would be for a contractor that is near the end of a job and running out of money to say “that wasn’t included in the price”. Excluding minor demolition, don’t let a contractor start a job that requires permits,
- Always do a background check on your contractor
If after you collect the information and referrals that you need from a contractor and you don’t verify this information, then your taking a big chance with your money and your house. You probably wouldn’t trust your neighbor with $75,000.00 dollars of your money and the keys to your house, right? So why would you trust a complete
Before you put all this trust into someone that you just met, you should first establish that they are
I have put together some questions for you to ask the people that you call on the referral sheet. Keep in mind that not every single job will run perfect and some of the people that you talk to may have had a small job done and others may be large jobs. The bigger the job, the more of a chance for problems. The same applies
Here is a list of questions for you to ask referrals;
How was the contractors pricing as compared to other bids that you received?
Did the contractor stick to his price?
Did he charge you an arm and a leg for extras?
Was the job started and completed in a reasonable amount of time?
Were you happy with his/her attitude when problems would arise?
How were his
Did you check any of his/her references and were you happy with them?
Did they keep the job clean and safe for you and your family?
Did he or his workers drink alcoholic beverages on or before the job?
How was his payment schedule, was it fair?
Did they foresee problems before it was
Was the contractor himself on the job to govern it, or did you only see him when it was time to get paid?
Was he easy to get in touch with after hours or on weekends for questions?
Did they put in full days, or start at 10:00 AM and go home at 2:00 PM?
Would you ever use this contractor again?
Are you a repeat customer of this contractor?
Was this contractor referred to you or did you locate him on your own?
Did you have any liens attached to
Is there anything that you feel that I should Know about this contractor before I chose to do business with him or any of his agents?
— Use some or all of these questions to better satisfy your knowledge of your contractor and to see if this is someone that you would trust with your home
- Review Your Contract Thoroughly
When reviewing a contract, refer back to the {Contents of a Contract} page and read it carefully. The contract, by law, has to contain certain information and other information is mandatory for the protection of you the owner.
If you review your contract and realize that certain items are not included or other items are lacking detail, then review it with your consultant or contractor before signing it. If you hire a consultant, he would be more likely to amend the contract to benefit you, more so than the contractor would.
Along with reviewing the Scope of
When you have entered into a contract with a contractor, you cannot terminate the contract or fire the contractor just because he or one of his workers did something that may
Very Important, If you terminate a contract without due cause, you can be made to pay the contractor all of the profits that he would have made if he would have finished the job. Other judgments may also be made against you.
So when you hire your contractor, make sure that you have chosen the right one for the job. Remember, a contract is a legal agreement that can either; save you from getting into trouble, or, Get you into a lot of trouble.
- Execute Lien Releases throughout the project
You should have your contractor and all of his ( laborers, employees, subcontractors, material suppliers and any other persons or company’s that he will be paying ) on your project sign these releases when you pay out money to the contractor. There is a conditional and unconditional lien release. Sign the conditional lean release during the job to assure that the subs have been paid. Any subcontractors or material suppliers can attach a lien to your property if the prime contractor fails to pay the subcontractors or material suppliers. In order for a subcontractor or material supplier to obtain lien rights, they must first file a Twenty Day Preliminary Lien Notice. Not all companies file these, but if you receive one of these in the mail, file it with your contract.
This is a notice that will inform you that someone other than the prime contractor is furnishing your project with materials and/or labor. In order for this notice to take
- If a deal sounds
to good to betrue, than it probably is !!!!!
I firmly think that everyone has been taught this since they were children. Although, people fall for sales pitches and
Don’t ever fall for the oldest trick in the book of when the salesman
These are items that your Consultant can help you with. Don’t be afraid to ask or hire a consultant about this, or you could be paying twice for your job.
It’s a fact. If a contractor doesn’t pay his bills, you will.
Good deals are out there, and you can find them if you do your
* Always compare apples to apples.
* You can’t compare your apples until their in writing.
* Make sure that
* Ask your contractor, “If I add extras or make changes, How will I be billed?”
* Negotiate your progress payments and put them in writing.
* Get a start and completion date in writing.
* Think for at least
* If you don’t understand your contract, and if you feel like you need someone on your side, Than hire a consultant. It is not money thrown down the drain.
Construction Consultant
A construction consultant is a person or company that can assist you in various areas of your project. A consultant can help you with understanding your contract, make sure that
If you have a consultant attend your estimates, He can act as a mediator and make sure that you and the contractor understand each other equally. This will save
How do I locate and hire a Consultant?
They are hard to find, but a good consultant can defiantly save you money and help
You can locate a consultant the same way that you find contractors. The yellow pages are a start along with asking around.
How much will a consultant cost?
Like contractors, they all vary in price. The price is not all that you should be concerned with. How much can he offer you and will he be there when you need him? The prices may range from $150.00 to $200.00 per hour, or a flat fee that might be a percentage of the job, or an initial fee and then an hourly fee
The fee may also vary depending on the difficulty of the project. The fee can be related to hiring an interior designer. Remember though, You can negotiate the fee with the consultant the same as you would with a contractor.