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Consumer Alert - How To Hire a Contractor

Some Things to Consider

DO:

    check box Plan your project carefully.

     
    check box Shop around before hiring a contractor.

     
    check box Get at least three written bids on your project.

     
    check box When requesting bids, provide all contractors with accurate plans or drawings that will enable them to determine the scope and cost of work.

     
    check box Check with the Contractors State License Board to make sure the contractor is properly licensed, and to check the status and disciplinary history of the license.

     
    check box Check out contractors with your local building department, trade associations or unions, consumer protection agency, and the Better Business Bureau.

     
    check box Get references for previous projects the contractor has done, and follow up on them. Look at work and ask if the homeowners were satisfied with the results.

     
    check box Consult with more than one lending institution regarding the type of loan to obtain.

     
    check box Pay only 10 percent of the project price or $1,000 as a down payment, whichever is less, and make sure your contract provides for a "retention."

     
    check box Make sure everything you and your contractor have agreed to is included in your contract,and don't sign anything until you understand and agree with all terms.

     
    check box Ask your contractor about inconveniences that may occur, and plan accordingly.

     
    check box Keep a job file.

     
    check box Take precautions to prevent mechanic's liens from being filed against your property and ask for lien releases from subcontractors and materials suppliers.

     
    check box Make frequent inspections of the work, including a final walk-through.

     
    check box If problems or disagreements occur, try first to negotiate with the contractor.

Don't:

    red x Don't hire an unlicensed contractor.

     
    red x Don't hire a contractor without first shopping around.

     
    red x Don't act as an owner/builder, unless you are very experienced in construction.

     
    red x Don't sign anything until you completely understand it and agree to the terms.

     
    red x Don't make agreements with subcontractors or workers without consulting the prime contractor.

     
    red x Don't pay cash.

     
    red x Don't make a down payment that exceeds the legal limit (10% or $1,000, or 2% or $200 for swimming pools, whichever is less).

     
    red x Don't let your payments get ahead of the contractor's completed work.

     
    red x Don't hesitate to ask questions of the contractor.

     
    red x Don't make final payment until all phases of construction have been completed according to the terms of the contract.

Be Sure Your Contract Includes:

    blue dot The contractor's name, address, and license number and the name and registration number of any salesperson who solicited or negotiated the contract.

     
    blue dot The approximate dates (not number of working days) when the work will begin and be substantially completed.

     
    blue dot A description of the work to be done, a description of the materials and equipment to be used or installed, and the price for the work.

     
    blue dot A schedule of payments showing the amount of each payment in dollars and cents.

     
    blue dot If the payment schedule contained in the contract provides for a down payment, it shall not exceed $1,000 or 10 percent of the contract price (excluding finance charges), whichever is less (swimming pools: two percent or $200, whichever is less).

     
    blue dot A Notice to Owner regarding the state's lien laws, and the rights and responsibilities of an owner of property.

     
    blue dot Checklist for Homeowners and Information About Commercial General Liability Insurance.

     
    blue dot A description of what constitutes substantial commencement of work.

     
    blue dot A notice that the failure of the contractor, without lawful excuse, to substantially commence work within 20 days from the approximate date specified in the contract when work is to begin, is a violation of the Contractors License Law.

 

 

Consumer Alert - Contractor Warning Signs A Message From A Company Who Cares

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Revised: 10/15/04

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