Hiring Contractors - Don’t Get Ripped Off

Hiring a contractor to help you with a project can be treacherous if the proper steps are not taken.  We see situations gone awry all the time.  Real estate developers will tell you that engaging contractors for their projects drive most of the risk in a project.

Here is a simple checklist to help you navigate the process of hiring a contractor:

1. Run From High Pressure Sales Tactics

   1. Do not engage with contractors who practice this. Good contractors do not need to use high pressure.

   2. A long-lived, steady, fair, and trustworthy relationship is what you are looking for with your contractor.

2. Make Sure You Need the Work

   1. Contractors may have (obvious) bias towards telling you that you need particular work done.

   2. Verify what is being proposed with a trusted adviser or consultant who does not have an incentive for the work.

3. Licenses

   1. Only work with contractors who have licenses with your municipality.

   2. Think of this license an indication that this contractor is serious about what they do.

   3. Call your municipality if you are not sure whether a contractor is licensed or ask the contractor to provide documentation.

4. General Liability Insurance

   1. See the insurance company declaration papers that show the coverage and check the effective policy dates.  

   2. Call the insurer to confirm current payment on the policy.  Check again if you have a long project.

5. Subcontractors vs. Employees

   1. Beware of the contractor who has no (W2) employees. These contractors will attempt to get your work done with various “subcontractors”.  Ask them who will be completing the work and if all of them are direct W2 wage employees. W2 employees will generally be covered by workers compensation insurance.

   2. With each subcontractor, you must now concern yourself if this subcontractor has Workers Compensation, Applicable Licenses, and General Liability Insurance. Demand proof of these things from your contractor for each subcontractor.

6. Publicly Available Information

   1. Search online for the contractor.  If visible, does the information look generally positive?

   2. If you can’t find anything online, this could be good or bad.

      1. Some of the best contractors purposefully stay in the shadows.

      2. Contractors may “reorganize” often to escape past public scrutiny.

      3. “New” contractors who are just getting started are likely not found online. You have to decide if you want to work with such a new contractor.

7. Get Permits

   1. Always obtain permits for the types of work that your municipality requires permits for.

   2. This again is an indication of how serious your contractor takes their projects. Applying for a permit forces the work scope to go through the process of being reviewed by qualified individuals.  This can help prevent something being built that is not code compliant.

8. Written Contracts (Always Have Them)

   1. Always have a written “draw” schedule.  This simply indicates when the contractor will receive partial payments, and what must be completed by the contractor before these payments will be made.

   2. Every project should have a clear and comprehensive written scope of work.  The more detail and itemized the better.  This alone can go a long way in a dispute.  A well written scope is extremely critical!

   3. Written completion schedule with penalties for not meeting schedule.

      1. If the contractor is proficient, they should have no issues accepting reasonable scheduling penalties.

   4. Written overview of how incomplete items will be handled.

   5. What is the warranty? Materials AND Labor should be covered.

9. Don’t Accept Shortcuts or Compromises

   1. Be wary of contractors that propose “shortcuts” to help you save money.

10. Questions to Ask Prospective Contractors

    1. What will be the Working Hours/Days for the project?

    2. Can you provide references from recent previous clients?

    3. What is your experience with projects of this size and scope?

    4. How do you handle change orders (what is your process)?

    5. Who will be communicating with me during the project? How often can I expect to receive an update?

11. Lastly - A Conversation on Expectations

    1. You should share your expectations with the contractor.  This can be things you want to see done, communication needs, workmanship quality needs, etc.

    2. Make sure the contractor understands your expectations and ask the contractor to outline their expectations for the project.

    3. Mis-match over expectations can make a project very painful.

By thinking through the considerations here, your project has a good chance of success!  

Seasonal Maintenance Reminder

It’s that time of year when most of the leaves have fallen from the trees. It’s time to clean out your gutters to prepare for winter.

A couple of tips for optimal performance of your gutter system:

1. Make sure all debris is removed from inside the gutters, INCLUDING those roof shingle granules. These small stone granules can cause pin hole corrosion of the gutter bottom.

2. Install strainers at all your downspout inlets. This keeps debris out of the downspouts and underground piping. It is much easier to clean out the gutters. A clogged downspout or underground pipe can cause damage if these area freeze.

3. Check for signs of overflowing water at the downspout to underground piping connections. This is usually evident when the mulch or soil around the downspout is washed away.

4. Make sure that all downspouts discharge their water at least 10 feet away from your home.

Luxury Home Feature

Motorized & Automated Window Shades

Open and close your window blinds and shades with the push of a button? Save on heating and cooling costs by automating your window coverings? Let the correct amount of light through those high and tall windows?

All of these things and more can be done with motorized window treatments. The control of the motors can be through local switches, remotes or your home automation system.

Lutron provides some of the highest quality products in this arena. You can view their offerings here: Lutron Shading Solutions

Online Stores - Door & Window Hardware

Offering the best selections, awesome prices or unique products

• Hardware Source, “The Hinge Experts”. Offering a quality selection of high quality cabinet, door, gate, window and specialty hardware. Check out their self closing gate hinges! https://www.hardwaresource.com/

• Looking for antique, a certain style or period correct hardware? Olde Good Things is the site for you. In addition to a massive amount of hardware, they offer many other home goods. A good website to waste a few hours on! https://ogtstore.com/

• Trying to fix the hardware on a window? Window Hardware Direct has you covered. With both excellent customer service and all of the unusual parts and tools you may need, this site can get your project back on track. https://windowhardwaredirect.com/

The content of this newsletter is for informational purposes only and does not constitute professional advice. Always perform your own due diligence before making any financial decisions.