FAQ about Construction for Consumers
1. Should I remodel?
Remodeling is an expensive and time consuming undertaking. Often the determinitive value regarding remodeling projects may be cost vs. value. There are many reports available online discussing this information. For example, the
Cost vs Value 2007 report. You should review this information before deciding on undertaking a remodeling project and making a final determination. If you do your diligence and plan property, remodeling can add a great deal of value. Unless you are a great handyman and have great skills, you may be headed for a disaster if you think that projects are as simple as they appear on an edited DIY show that can be very misleading or that costs are as low. Good value from remodeling comes from an accurate assess of costs, labor, materials and management.
2. How much of a deposit should I pay?
Generally that will vary by contract. Rarely however is a deposit of 100% required. A large deposit may be a red flag to check out your contractor carefully. A request for a cash deposit is generally a very very large red flag.
Deposits may be higher for smaller specialty projects. An entire home remodel deposit should probably never exceed 30% and in many cases less may be better. But it is not unreasonable for a contractor to request a 100% deposit of the amount of special order products, products which cannot be returned, manufacturer restocking or cancellation fees, etc. and for a deposit to cover anticipate design work.
3. What should I be looking for in a bid/contract?
Be very specific about the work you are seeking to be done. If you are indecisive, you can end up with bids that may not be truly comparable as they may be based on different interpretations of what you have requested. A good bid will generally descibe the work but the contract should be very specific about standards, work, start dates, finish dates. Remember the lowest bid may not be the best bid and may be based on cutting corners. Also remember that change orders can be very costly and once you are in a contract, your ability to negotiate a change order may be very limited (it may not be uncommon for a contractor to charge a fee for preparation of a change order, whether the order is approved or not). If you are replacing appliances and other equipment, be sure you know what features you are going to be seeking as part of the bid process. For example, some appliance may require additional utilities, wall-mounted toilets may require changes to walls or require compliance with codes. These may impact project design and layout.
4. How to keep a good relationship with your contractor?
Do not micromanage the construction process. All reasonable time periods for completion. Keep your comments businesslike and have a clear reasonable agenda. Remember also that there are tolerances in construction.
If you are going to expect perfection in the final product, you had better specify that in the contract up front and make sure the contractor knows it up front so that the contractor may price accordingly. This will save both parties a lot of headaches. There is nothing that can bring two parties into conflict quicker than demanding absolute perfection when you as a customer have only paid for standard and customary construction practices.
5. What should I expect if I have an attorney review my contract?
First, your contractor should NOT be offended if you want a legal review. At the same time, if the contractor's form contract is reasonable, a knowledgeable construction attorney will generally provide some critical inputs and point out some important issues Explain to your legal counsel issues that are critical to you so that they can be addressed. Expect a balanced contract which provides reasonable protections for both sides and sets reasonable milestones. Pushing an aggressive schedule or aggressive multiple changes may very well raise red flags for a contractor and may start the working relationship off on a bad footing.
6. My contractor asked that I pull the building permit. Should I?
In most circumstances, the answer is NO, NO, NO, NO, NO. Did I say NO? Other than circumstances where an owner is acting as their own general or residential contractor under the exemption for an owner (which is limited), I have not seen a circumstance where the owner should pull their own permit unless the owner was actually acting as the general contractor. When a permit is pulled, the permittee assumes responsibility for the quality of the project work and code compliance. A completion contract may be held responsibile fo rthe quality of the work and code compliance of the prior contractor.
7. My contractor says I don't need to get a building permit. Why shouldn't I save the money?
There are a number of reasons to be sure you always get a building permit if one is required. Always check with local officials to verify if a building permit is needed. Yes, it is a pain but good building department will work to assure that building codes are followed and will provide inspections (a recent study indicates over 30% of all inspections fail). Building codes are MINIMUM but they are for your protection. Yes, inspectors miss things and they are not liable to you. But they can often catch things. You should also consider hiring your own private inspector. A good building department will also be verifying your contractor has the proper license and can be helpful if there are problems in your project.
Home purchasers and real estate professionals are also checking more frequently online information to be sure jobs were permitted. An unpermitted job may adversely impact the value of your home.
8. My contractor says he is licensed. Do I take his word for it?
Absolutely NOT! I had one contractor actually lie to me in an email that he was licensed by the state of Georgia. Not all construction requires the use of a licensed contractor and not all contractors need to be licensed.
If they are a state licensed residential or general contractor, they have a pocket form of their license they can show if they are the actual licensed QA or individual. With some larger companies, you may be dealing with someone who is not the licensed QA for the company and they may not have the license issued to the QA (or even a copy of it with them). In other cases, someone may create a fraudulent license. Ask for the information. Take down the name and number. Verify with the Secretary of State's office that the company that is shown on your contract is actually the licensed contractor. You can find the
links for verification on this website.
While a business license from the local jurisdiction (county or city) is required for all businesses and your contractor should be able to prove they any required business license, do not confuse a business license for a contractors license. Don't let an unscrupulous unlicensed contractor "bait and switch" a business license for a contractor's license.