Tips on Working with Contractors

The State of Oregon provides consumers with a pamphlet titled “16 Ways to Avoid Remodeling, Repair and Construction Problems”.  These tips are valid for any construction project in any state. 

1. Develop a list of potential contractors.
Ask friends, neighbors, relatives and coworkers for names of contractors they used. Find out if their experiences were good or bad. Ask if they would use this contractor again.

2. Ask for references.
Check with previous customers. Were they satisfied with the work? Was the work finished within a reasonable time frame? Did the contractor return phone calls? If the person had problems with the contractor, ask how the contractor responded to complaints. Look at examples of the contractor’s work. You can also check the business out with the Better Business Bureau. For a bigger project, check with the contractor’s bank and suppliers and ask about financial stability.

3. Ask what trade associations the contractor belongs to.
Home building and remodeling is professional work. Membership in a professional association is one sign that a contractor recognizes the responsibilities of being a professional.

4. Get two or three specific written bids for bigger jobs.
Make sure you understand any wide variations in bids.  J.O.B.S.™ provides very detailed specification forms to be filled out by you.  This provides the basis for the contractor to offer you an accurate and complete bid.  It is very easy to compare the different bids if the contractors are all working from the same specifications.

5. Don’t automatically accept the lowest bid.
The old saying “you get what you pay for” applies here. A higher bid may be worth the price in better materials, workmanship and reliability. If you get a very low bid, the contractor may have made a mistake or forgotten to bid everything. Or, they may have deliberately low bid the job in order to get it. If they have bid too low to make a profit, they may use cheaper materials or take shortcuts. Be careful about hiring a contractor on an hourly, “time and materials,” or “cost-plus” basis. (Cost plus means you will not know the final cost beforehand. You and the contractor will decide how the contractor will document costs.) A fixed-price bid may give you the best protection and price.

6. Make sure your contractor is licensed.
In most states a license is required for any business or individual that advertises, offers, bids, arranges for, or actually does any construction, alteration, home improvement, remodeling or repair work. This may include painting, roofing, carpentry, siding, plumbing, electrical, floor covering, windows, insulation, land development, concrete, inspection services, heating and air conditioning, and most other construction and repair services. Ask for a current license number or get it from their business card or advertisement. Illegal contractors will lie and say they’re licensed hoping you won’t check up on them.

7. Plan your project carefully.
Consider your budget. Find pictures of styles and products you like. Write down brand names and models. Show them to your contractor. “High quality faucets” or “ivory paint” may mean something different to you and your contractor. As stated is # 4 above, the specification forms include all the information your contractor needs to purchase and install the exact products you want (see the example of a spec form on the home page). Get accurate plans or blueprints and make sure they show your project accurately. Approve the completed plans before work begins. J.O.B.S.™ provides you with a Construction Schedule so you know what will happen and when it is supposed to happen.

8. Think carefully before becoming an owner builder.
If the work requires more than two specialty contractors, you should hire a licensed general contractor. (Remodeling a kitchen, for example, usually requires a plumber, electrician, floor layer and carpenter.) If you decide to be your own general contractor, you (and not the people you hire) are responsible for the overall job. This may include payment of state and federal taxes, workers’ compensation insurance premiums and other legal liabilities. Unless you’re an experienced builder with the time and skills to do it right, you’d be wise to hire a licensed general contractor.

9. Use a written contract.
A written contract protects you and the contractor. Put all agreements, including all changes to the contract, in writing. Generally, the more detailed a contract is, the fewer problems that will come up later. Make sure the name on the contract matches a name in the contractor’s license record. Don’t sign the contract until you understand everything. J.O.B.S.™ provides very detailed contract, no stone is left un-turned. Get all warranties in writing as part of your contract. Make sure you understand what is and is not covered. J.O.B.S.™ provides a Limited Warranty Agreement form and a Non-Warranted Conditions form.

10. Make changes in writing.
People change their minds during a project. If changes are made at the right time, the cost and length of the job may not be affected. Delays, however, can mean costly changes. For new homes and remodeling projects, allow at least a 10 percent increase for changes from the contract. If changes in the plans or contract occur during the project, put them in writing as amendments to the contract, including any differences in cost and who will pay for them. These change orders should be signed by both you and the contractor. J.O.B.S.™ provides change order forms.

11. Communicate.
Talk to your contractor during the project. Many disputes happen because people fail to communicate at every step of the project. If in doubt, talk it out.

12. Obtain building permits.
Construction of new homes and most remodeling projects require building permits from the local building department. Usually contractors obtain the permits because they know what permits are required. But ultimately, the owner is responsible for making sure proper permits are obtained. Make sure a final inspection is done when the work is completed.  J.O.B.S.™ provides permit and inspection logs to track this process.

13. Pay wisely.
Legitimate contractors are entitled to a sizable down payment—a third to a fourth of the total cost of the contract is common. Find a balance where the contractor has enough money to buy materials and begin work, and you have enough at the finish date to ensure satisfactory completion. Make payments in stages as the work is completed and has passed inspections. For bigger projects, you can establish an escrow account at a bank. Don’t pay in cash. Unfortunately, a few scam businesses have no intention of starting or completing the work. Make checks out to the contractor as the contractor’s name appears in the contract. J.O.B.S.™ provides a Draw Schedule that is tied to the Construction Schedule.  You will know what to pay and when you will need to pay it.

14. Avoid construction liens.
You, the homeowner, are ultimately responsible for payments to subcontractors and suppliers even if you have paid the general contractor in full. Understand your rights and responsibilities regarding construction Liens in your state.

15. Keep good written records.
Keep a log of conversations and copies of all documents, correspondence, canceled checks, change orders, etc. If problems develop later or you sell your home, the project is documented.  J.O.B.S.™ provides a Client Book that is a very detailed record of your construction project.

16. Get help resolving disputes.
If problems or disagreements occur, try to work them out with your contractor.
If problems persist, contact your state board for information about its dispute resolution services.
J.O.B.S.™ is the answer to eliminating most problems that come up in any construction project.