Getting Estimates. Get estimates from at least two contractors to compare prices. Remember the cost of materials and quality of materials will affect the bid. A low bid based on inferior materials may not be a bargain, so consider more than the price alone. Be sure the estimate specifies the total price, the terms of payment, the kinds of materials to be used, and the expected time it will take to complete the job. Be wary of special prices because of left over materials, other jobs in the neighborhood, or discounts if you agree to get other customers. They are often gimmicks to get you to buy.
Choosing A Contractor. Get the names of
contractors from:
-- Friends or neighbors who have had
satisfactory work done.
-- People at local home improvement centers,
builder shows or open houses.
-- Local Yellow Pages list licensed builders
who do business in your community.
In Michigan, you should be aware that all
contractors offering to do work which totals
$600 or more in labor and materials must be
licensed by the Department of Consumer &
Industry Services. Check your local government
to see what the requirements are for your State.
A Residential Builders License allows a contractor
to build a complete residential structure and do
maintenance & alteration (remodeling) work on a
residential structure. The holder's state license must be displayed in the place of business and all contractors and their salespersons must carry a pocket card which you should ask to see. If they cannot show you a license, check the department's License Information database or call the Builders Licensing Unit of your state.
Get References. Get references from the contractors you are considering. Ask for the name and address of previous customers. Check with those people who have had work done and ask if it was satisfactory. Be sure the contractor has a permanent business location and telephone number. Check the contractor's credit reputation with local banks or suppliers.
Get it in writing. When you have selected a contractor, get all agreements in writing. A written agreement will make sure there are no misunderstandings about the work, or the terms of the contract. Make sure you read all documents carefully. While it is not required, it is often a good idea to have an attorney review the contract and any other forms before you sign them, especially if a large sum of money is involved. Don't be afraid to ask any questions about anything you do not understand. Ask for any changes or modifications before you sign the contract.
Things To Get In Writing:
How To Hire A Contractor
In A Hour.com
| • | The company name, address, phone number and the full name and license number of the builder/contractor and/or the salesperson. |
| • | Detailed job specifications which include a description ( brand names, colors, grades, styles, and model numbers) of materials, a list of all costs spelled out clearly, and any architect's or engineer's drawings which are required. |
| • | Start and completion dates. These should allow for any reasonable delays but should include a clause allowing you to withhold payment if work slows down for no apparent reason. |
| • | A statement that all required building permits and variances will be obtained by the contractor before work is begun. The building permit is your protection. An inspector will make sure the finished job meets all codes and safety standards, and makes the contractor responsible for corrections. Check with your local City Hall to see who is responsible for pulling the permit(s). A growing trend is that the homeowner pulls the permit-- so check to be sure! |
| • | A guarantee that the contractor carry liability insurance and has Workers Compensation coverage (in cases where there are more than 1 employee of the company), in case of accidents on the job. |
| • | A statement of warranty on the work. Be sure it tells if labor and materials are guaranteed, and for how long. A statement that cleanup will be done by the contractor should be allowed. |
| • | A provision for credits if there are large amounts of materials left over. On the other hand, you should be prepared to pay for extra materials if the project takes more than anticipated. Your contractor should provide you with a description of these extra costs in writing, so that there are no surprises on your final bill. |
| • | The terms of payment should be clearly stated in the contract. |
| • | A right to cancel clause. If you are solicited and have signed the contract in your home, you have three days to cancel the contract if you change your mind. You must send the contractor a registered letter stating you wish to cancel. |
| • | If everything in the agreement is satisfactory, both the contractor and the homeowner must sign and date the contract. Any changes or revisions must be dated and initialed by both parties. |
| • | Be sure that the contractor gives you a copy of the contract, with any changes noted. |
Paying The Contractor. Never pay for the entire job in advance. Make a deposit when work begins to cover materials and start-up costs. Pay by check to the company name and ALWAYS get a receipt. Make scheduled payments as work progresses.
Resolving Problems. If you have problems, you should first try to resolve them directly with the contractor BEFORE making the final payment. You may contact the local building inspector for assistance in resolving workmanship and code violations.
Small Claims Court is another alternative if the dispute involves a sum within their jurisdiction. If your efforts to resolve the matter fail, or if you feel you have been the victim of fraud or deceit, you should contact the Commercial Enforcement Division (or similar Division) in your local government to file a complaint.
Remember. Working with an unlicensed builder or contractor is done at your own risk.
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