Contractors
Austin's Home Guide
Getting the wrong contractor can cost a property owner a ton of money, head aches and heart aches. Here are some tips for getting the right person and getting the job done as you want it:
Check the background and license of the company
- Always make sure the company you choose is licensed and in good standing. Also keep in mind that in certain regions licensing is not required if the job is under a certain dollar amount. But unlicensed contractors may also be uninsured, which means injuries on the job may fall under the purview of your property insurance, which is not what you want.
Before working with a professional, verify that the information presented is still current and/or acceptable to you. Obtain a copy of the contractor's insurance certificate where applicable.
Ask for proof of insurance.
- Have the company to provide proof of insurance. Verify with the insurance agency or carrier that the policy is still in good standing.
- General Liability insurance typically covers a contractor for accidents that occur while the contractor is working. However, there are exclusions to coverage, and you should confirm the actual scope of the contractors coverage directly with the contractor.
Finalize the contract before starting on a project.
A good contract...
- Should be written on company letterhead
- Should contain the company's name, address, phone numbers, and license number (if applicable)
- Should contain the consumer's name, address (where work is to be performed), and phone numbers
- Is dated when it is written
- Includes a detailed description of the work that is going to be performed
- Provides dollar amounts associated with each task included in the project
- Includes an anticipated/estimated start and finish date
- Provides a payment schedule
- Includes a termination clause
- Contains a clause that protects the homeowner from any potential mechanics liens once you have paid the contractor in full
- Clearly states whether permits will be pulled, and who will be responsible for pulling them.
Pay the company.
- Do not pay an individual.
Don't pay cash.
- Always get a receipt for all payments.
Don't pay until the project is done to your satisfaction.
- Don't pay in full until the project is completely finished and you have completed your final inspection.
- If sub-contractors were used, be sure to get signed releases from all subcontractors clearly indicating that they have been paid in full by the general contractor.
- For larger projects, don't make the final payment until you have passed the final building inspection.
Don't advance money for materials.
- If absolutely necessary, make sure the materials are delivered to your house with a receipt showing that they have been paid in full.
Check multiple references.
- References may not be the most useful tool as projects and situations may vary, and anyone that the company lists for reference, will no doubt have good things to say. But, it still pays to consult with others that have used a contractor. Don't be afraid to ask them plenty of questions.
Document any and all changes to the contract.
- Make sure all changes to the original contact, no matter how small, are documented and signed off by both parties.