Upon finalizing the choice of a contractor, the next step is for the homeowner and the contractor to sign a contract. By this time the differences in opinions regarding procedures and materials should have been resolved already. All that is needed now is the actual implementation of the project.

The contract contains everything that has been agreed upon, description of the work to be performed, details of the project and the corresponding price quotations. It is a legal document that is binding to all parties who sign in it. That is why both the parties (homeowner and contractor) should sign the contract.

To safeguard one’s interests, the contract should never be signed unless carefully reviewed over. Because once the contract has been signed, the contractor will not be legally bound to honor anything beyond the specifications of the contract. If something detailed in the contract is not clear to you, ask for an explanation and request that a revision be made to the contract. If still in doubt, discuss the matter with a reputable lawyer.

The contract must also indicate the following:

1. The contractor’s name, address, phone, and license number, if required
2. Project cost and terms of payment
3. A detailed list of all materials including color, model, size, brand name, and product
4. An estimated start and completion date of the project.
5. The contractor’s obligation to obtain all necessary permits and Contractor’s notation that all work will be done according to local building codes
6. Contractor’s notation that the construction site shall be cleaned up at the end of each working day including the removal of all debris at the completion of the project
7. Warranties covering materials and workmanship to include the length of the warranty period and any limitations also should be spelled out.
8. A statement of the contractor’s public liability and property damage insurance
9. A release of lien clause ensures that the homeowner will not be responsible for liens filed against the contractor by suppliers or subcontractors.

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Before You Hire A Contractor: Check These Out

Unless you’re a qualified “do-it-yourself” guy, hire a capable contractor to get the project done. Depending on the size and complexity of your project, you may choose to work with a specialists in their field. You can choose from among the following:

• 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.
• 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.

Important Guides in Hiring a Contractor:

1. Word-of-mouth is a good way to start looking for home improvement specialists. Check with friends, business associates, and neighbors for recommendations. You can also check with your local business bureaus for listing of established contractors.
2. Don’t settle for just one contractor, ask three companies to look at the job and give you a written estimate. Never accept an estimate over the telephone or without the contractor inspecting the area.
3. Be wise to ask for references, professional certifications, and state licenses – then check them out, even if the company has been recommended to by a friend. If references have been given, do take a look at examples of their work to see if they meet your expectations. Ask for past customers evaluations of their workmanship if possible.
4. It is preferable to deal with contractors that are fully insured. The contractor should carry workers’ compensation and general liability insurance. Lack of insurance could leave you liable for any injuries suffered on the job. Ask for a copy of their insurance certificates. Every contractor’s insurance should cover property damage, liability, and workers’ compensation.
5. It is important that the contractor has a reliable business record or is solidly established with sufficient capital to stay long enough to complete your project. Check with the contractor’s bank for the company’s general solvency. You don’t want a contractor to go bankrupt in the middle of your project.
6. It is equally important too that the contractor is knowledgeable in securing the necessary permits for the work.

 

The best contractors are those who care about the project as much as you do, and who can work around your schedule and your household’s routines. If you want to be involved in every decision, hire a contractor who’s comfortable with close supervision. If you want to leave the details to an expert, hire a contractor whose decisions you will trust.

Warning Signs:

Be wary when dealing with contractors who:

• 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

Not all contractors operate within the law. You may be in for a potential rip-offs by a fly-by-night contractor.

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The common reasons why people would want to remodel or improve their houses are:

• The potential increase of re-sale value after improvements in case the owner is planning to sell the house.
• The family has grown and needs a bigger space.
• The house really needs a face-lift.

If major renovations (bath & kitchen improvements, room addition, landscaping) are going to be made, it is best to hire the services of professionals to do the job. When it is almost impossible to handle the plumbing, electrical, and carpentry work, hiring people who have experience can save you money and time. Getting something done right the first time will give you value that lasts for years. The most common are the following:

Architect – If the job involves planning structural changes, or a complex design, an architect would be needed.
Contractor – This person oversees the nuts-and-bolts aspects of your home improvement project, such as hiring and supervising workers, getting permits, making sure inspections are done as needed, and providing insurance for work crews. Once you’ve chosen a contractor, make sure your contract specifies that you will pay in several stages. It’s customary to pay one-third when the contract is signed so that the contractor can buy supplies. The number and timing of other payments depends on the size of the job, but do not make final payment until all work is successfully completed, inspected, and approved.
Interior Designers - These specialists offer advice on furnishings, wall coverings, colors, styles, and more. They can help save you time (by narrowing down selections) and money (from the professional discounts they might receive).

The homeowner has the final say whether all or only one consultant is needed to do the job.

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