Choosing the right contractors -- and knowing how to work with them -- can mean the difference between excellent work and shoddy work. Informed homeowners can save time and headaches and get the best value for their money. Here’s how:
Collect Recommendations
Ask friends and coworkers for names. Listen to their advice. Be on the lookout for workers and contractors’ trucks in your neighborhood and ask the homeowners about them.
- Were they pleased with the workmanship?
- Was the job finished on time?
- Did the workers clean up satisfactorily?
- Were the contractor and crew easy to work with?
Additional sources of recommendations include architects, interior designers, a builder’s association, building supply managers and hardware store managers.
Compare and Eliminate
Compare notes on your list of contractors and weed out those with displeased clients. Eliminate distant firms; communication can be a problem. Also, many of the unreliable firms seek out long-distance business.
Do not eliminate, but be extra cautious about a home-based operation. The contractor could be inexperienced or under financed. On the other hand, a good contractor with a home base has less overhead expense and could offer a better price.
Check Credentials
Make sure your builder is licensed. You can search for and verify Louisiana licensed contractors at www.lslbc.state.la.us , the web site of the Louisiana State Licensing Board for Contractors.
Check with the local consumer council or Better Business Bureau. They maintain complaint and litigation records, and some run credit checks. Wholesale building material dealers and loan officers also know about reliability and financial standing of contractors.
Ask for proof of insurance. The contractor should have workman's compensation and general liability insurance to do work in this state, or you may be liable for accidents occurring on your property.
Another tip: Unreliable or dishonest contractors are seldom long-term “joiners.” Find out whether the contractors belong to groups such as the National Home Improvement Council, a builder’s association, the National Remodelers Association, the chamber of commerce or local civic organizations. Ask about length of membership terms and look for membership certificates, seals or plaques in their offices. Also construction-related associations require that their members comply with a set of standards and ethics. Don’t automatically rule out non-joiners. Some may be so outstanding that their reputations are the only credentials they need.
Call Contractors’ Clients
Ask the contractors for a list of customer references. Keep in mind that they will understandably give you their best references. Still, call a few names and listen carefully to what they say, and especially to how they say it. Are they enthusiastic or hesitant?
If the owner is willing, take a look at the contractor’s work firsthand. This will give you a better feeling for the owner’s real attitude.
Consider Bids
Get bids (free estimates) from your top three contractors. Make sure each one bids on exactly the same job. Sometimes contractors may have different ideas about which methods or materials to use on the job, so their prices will not be comparable.
The best measure of one bid is two other bids. A high bid does not necessarily mean high quality workmanship. It might mean only that the contractor is so busy that he or she will do the job only for an inflated price. Likewise, a very low bid may not necessarily mean inferior work. It may mean business is slow and the contractor wants to cover overhead expenses.
Avoiding Misunderstandings
Make sure everything -- project descriptions, bids, terms, etc -- is in writing. The written word is far more reliable than memory.
Prepare a complete description of your project while going through the process of finding your contractor. Your sources of recommended contractors can help you clarify and organize your ideas into the following preliminary specifications:
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Draw rough floor plans to scale (1/4”=1’ or ½”=1’) on graph paper. Include details of walls and ceilings showing the placement of electrical outlets, switches, lighting fixtures, closets, built-ins, appliances, doors and windows. Indicate measurements.
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List the appliances, fixtures and cabinets with brand names, model numbers and color codes.
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List brand names and grades, when applicable, for all building materials (paint, finishes, flooring, windows, doors, roofing, siding, plumbing, wall coverings, insulation).
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Specify any other details such as special construction techniques, trim, steps, etc.
Such a project description will help you clarify design and cost as well as avoid misunderstandings and disappointing surprises.
Making Good Materials Selections
It is a good investment of time to browse through home centers, building supply stores, lumberyards and supply catalogues.
Ask prospective contractors specific questions during their free estimates. Ask each to outline steps of construction and list the materials required for the job. Also ask for advice, alternative solutions to problems and design ideas. Do not assume that such advice is necessarily the best choice, but it can be a good source of ideas.
Another good source of information is the local building department. Its inspectors can supply legal specifications for any project. To help interpret this information and to educate yourself, read a suitable home improvement manual or book. Many good how-to books are available.
Writing a Good Contract
If the project is large and costly, you may want to hire a lawyer who is familiar with construction contracts. Do not use the contractor’s lawyer; that arrangement is a conflict of interest.
Every construction contract should include the following items:
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The entire project description (plans and specifications).
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A statement that any change orders and price adjustments must be described in writing and signed by both you and the contractor.
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The names and license numbers of all subcontractors and a statement of the homeowner’s right to have substitutions if their workmanship is poor.
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Specific starting and completion dates, followed by the phrase “time is of the essence.”
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The phrase, “workmanship must be the best known to the trade.” (Although ambiguous, this statement has some legal significance in a contract.)
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A guaranteed maximum price for the completed job and a schedule of payments. For small projects, the payment may be broken into thirds: 1/3 as down payment (10 percent after signing the contract, 23 percent when the crew reports to work), 1/3 when work is well under way, 1/3 after job completion and cleanup. For large projects, negotiate the smallest possible down payment and largest possible final completion payment. Payment while in progress should be made only when you receive paid bills for labor and materials specified in the contract.
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The clause “final payment will be withheld until the contractor presents releases or proof of payment from major suppliers and all subcontractors.” If suppliers or subcontractors do not receive payment, they can successfully sue the homeowner-even if the contractor has been paid in full.
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A statement that the contractor must secure all necessary building permits and inspections.
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A statement that the contractor will provide a Certificate of Insurance covering Workers' Compensation, property damage and personal liability.
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The statement, “no agreements unless recorded above are binding, excluding change orders signed by both the contractor and the homeowner(s),” at the bottom of the contract.
The most important precaution in contract writing is never sign anything until you have read and understood every word. It is a good idea to take the contract home and think about it for a couple of days. Keep a copy of the signed contract and all change orders.
Supervising the Job
Even the best-planned projects will require some decision making while the work is in progress. Plan to be available for impromptu telephone consultations and to be present during critical stages. Rethink details (such as fixture placement, door swing, etc.) before they are installed to minimize the costliness of changing your mind after it is too late.
While “supervising,” be firm but not overbearing and bothersome. Expect a disruption of your daily routine and some inconvenience. Restrain pets, children and visitors from getting in the crew’s way. Try to accommodate their needs, and they will be more inclined to meet your needs.
Although luck and blind trust may bring success to some homeowners, they can just as easily lead to costly disappointments. Doing some homework is your best guarantee of getting what you pay for.
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Do not pay in advance; a deposit would be acceptable.
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Do not let the contractor begin work until you have a signed contract.
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Don't pay until the job is done to your satisfaction.
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Don't pay until the contractor has shown you proof of payment (releases of lien) of subcontractors and suppliers.
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Pay by check or credit card, not cash.
Contract Elements
A contract is a promise or set of promises for which the law gives a remedy in case of breach, or the law in some way recognizes performance as a duty. If money or other considerations change hands before the entire contract is completed, signed receipts should change hands.
Contract Elements
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Agreement. The offer and acceptance to do specific things in a specific manner. State clearly, simply and completely all that is to be done. If beginning and finishing dates are involved, state them in the body of the contract. A good item to include in a contract for home rebuilding is that materials and procedures used will be those provided for in minimum standards of the current building code.
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Guarantees . Include what is guaranteed and for how long. Also include who is responsible for the guarantee (contractor, dealer or manufacturer).
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Permits. State who is responsible for obtaining and paying for any required building permits.
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Parties. Parties involved must be at least 18 years of age and mentally competent (not insane, retarded or suffering mental problems of aging). All parties must sign the contract.
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For a consideration . Something of value changes hands, usually money. The amount to be paid and schedule of payments should be included in the contract. That schedule should be based on progress toward completion, not on the passage of time. Exercise your right to inspect all work or to hire someone to inspect the work for you.
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Change Orders. The contract should specify procedures to be used to change the original work order.
- Keep a copy of the signed contract.
What to Do When Things Didn't Go as Expected
If you think you've been treated unfairly, try to resolve your problem with the contractor. If that is unsuccessful, don't be embarrassed to call the Consumer Protection Section of the Attorney General's Office at 225/342-9638 or the 24-hour Consumer Info-line 1/800/351-4889. You can also find the AG's office online, at http://www.ag.state.la.us/consumer.shtml.