Always, always, always have a contract for any project you are doing that is clear about the scope of work to be done, payment terms or schedule, warranty information, drawings, specifications or any other information that helps clarify any part of the project. This is to protect both parties not just the contractor or the homeowner. Do not sign anything you are not comfortable with or agree to. That sounds like a statement that shouldn’t have to be made but it happens all the time.
Look at the contracts from the different contractors. Are they clear and neat and detailed or are they vague and messy and possibly unreadable? With all of the bids and contracts in front of you to compare apples to apples, you can see what the lowest and highest bidders are proposing. Always going with the lowest bidder will come back to haunt you eventually. Sometimes the lowest bidder can do a great job but more times than not you are just looking for trouble. The amount it will take to correct any problems that the lowest bidder may cause or even having to take legal action against him will add up to more than the highest bidder to begin with. So please, just be cautious with the lowest bidder.
What should be included in the contract:
> The contractor’s address. not a PO Box but a real address for a place where you can go and actually find him.
> Work timetable. It is a good idea to know when the project will start and be complete. Obviously if there are issues that arise then this will be extended.
>Payment schedule. This should be set in the beginning with either a percentage or specific date pay schedule including down-payment and final payment dates and terms.
> Exact material specifications. This should include part number and pictures whenever possible. How else will you know what you are getting is what you paid for?
> There should be a statement that the contractor will pay all sub-contractors before the final payment is scheduled to be paid.
> Subcontractor names should be included and you can verify that they have been paid before you issue the final payment. Some states (including Texas) have ‘lien laws’ that allow a subcontractor to attach your home if they are not paid by the contractor!
> Permits. The contractor is usually the one who would obtain any permits but it needs to be specified in the contract because ultimately you are the responsible person to make sure the building laws are adhered to.
> Notice to Cancellation. There should be a statement about when you can cancel the contract. It is generally a few days after signing or a few days before the job begins. This allows you time to review the contract and get out if you do not feel good about something within the time period stated in the contract.
> Details. The contractor should provide you with a list of manufacturer, part number, color, or any other information that will allow you to find that item of material at a later date if you have to repair something so that is an exact match so long as the materials are still produced and available.
> Warranties and Manuals. These should be left with you and if you have any questions about anything you should ask your contractor for clarification while he is there.
Also, I just want to say that you may have anything added to the contract that you want added before you sign it. If it is not what you want to sign then don’t. If the work has not been done in the timeframe allowed then the payment schedule needs to be adjusted.
NEVER pay for a job in full until it is completed. What incentive does the contractor have to come back to work if he has been paid in full. If all he has to do is come back to put an electrical cover plate on and you are holding 10% of his money, it will be on his priority list. This does not mean that you can hold the contractor ‘hostage’ and have him do more and more work before you pay him because that will turn the tables quick and you may be the one getting sued and then the final payment will be due with legal fees and maybe other late fees.
It is possible to do everything in these 3 articles in a timely manner and provide yourself with the best information to make the best informed decision and hire a great contractor. We are proud to do our best to be the BEST contractors in the greater Houston area. We are constantly complimented on how well we work on site and how easy we are to work with and have satisfied customers at the end of the job. At the end of the day, we want you to tell someone else about us and that they would want to hire us before they even meet us. That is our goal and we will acheive this goal one project at a time.
Thanks for reading. Leave your comments. I would like to know who was here!
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