Some general contractors may not know your area and the codes specific to your property. For example, if you live in an area populated by a large number of historic homes, you may have restrictions on the type of renovations you are allowed to do. This is a very basic question, so don`t be afraid to ask how long your entrepreneur has been in the industry and how long they`ve been running their business. Also ask about their experience with the specific renovations you plan for your home. Many entrepreneurs don`t throw hammers. They spend their days providing new jobs and managing their various jobs and workers. This makes the foreman – the one who works on your project every day – the most important member of your team. When hiring a contractor for the first time, you should dig deep to get a sense of their company`s history. This means that you need to ask for proof and properly verify that he or she is currently authorized by the state in your area, if applicable in your area. Rules vary from state to state, so if you live in the U.S., check out this list to find out if your contractor needs to be licensed or registered to work on your project.
Whether you`re building a home, renovating your kitchen or renovating your bathroom, ask for proof of license and insurance. Different states have different licensing requirements, and you need to make sure the contractor has obtained certificates specific to their area of expertise. A commercial license is not sufficient in this case. Why you want to hear it: Joining an entrepreneur association is not a necessity, but it shows a potential entrepreneur`s commitment to work and the industry in general. Professional associations, which can be national, national, or even specific to the entrepreneur`s specialty, provide members with additional training, networking and research materials to keep them informed of practice. Ask your potential contractor to discuss these things ahead of time from day one. This will help you prepare for cost or schedule adjustments. A waiver of lien is a legal document that confirms that you have paid the general contractor and all subcontractors for the work performed. It waives the signatory`s right to file a lien on your property. Hiring a contractor can be similar to acquiring a brother-in-law, except that when it comes to a contractor, you can make the choice – not your capricious little sister. This family aspect stems from the fact that you are likely to see several of your contractors, depending on the size of the project and the amount of subcontracting involved, so it is important to find someone you can get along with and who will do the job properly.
Why you want to hear it: A termination clause, says Reed, is an agreement that allows any party, the contractor OR the owner, to withdraw from the contract on terms agreed to by both parties. “That way,” she says, “if a landlord stops paying the contractor, the contractor could terminate the contract and walk away without penalty.” On the other hand, if a contractor does not show up for work, the landlord could terminate the contract without penalty. Down payments are a tricky thing when it comes to home renovation and improvement. Of course, it is certainly a sign of goodwill for you to anchor your entrepreneur with a little money. But you also don`t foolishly want to put your money in the hands of someone you can`t contact if they never show up, for example. The most important thing is to know who is responsible for what. Paying a person opens up serious loopholes. If the entrepreneur has a business license but still requires individual review, it probably means that the entrepreneur isn`t reporting that income for taxes — not exactly a sign of an honest worker.
If they don`t have a commercial license, you`ve now opened a whole Pandora`s box. Not only are you not allowed, but you are essentially responsible for any work done poorly (or worse, injuries sustained by workers). You also need to negotiate the payment schedule and determine how surprise costs or potential change orders will be accounted for. Planning the payment plan should be a give-and-take, but the more you can negotiate to keep it in your pocket for as long as possible, the better: you never want to pay more than you received at any given time. And remember—don`t sign that last check until you`re completely satisfied with the completed project. In addition, find out how long the business will last, whether it has ever operated under a different name, whether it has declared bankruptcy, how its operations are structured, and where it is physically located. It will also be helpful if you get a list of references with similar projects so you can learn about their experience with the contractor and their overall satisfaction with the results. A waiver of undertaking is a legal document that confirms that you have paid the general contractor in full for the services provided. It`s unfortunate, but disputes between owners and contractors are frequent. This can easily become a nightmare, so it`s a great idea to create a dispute resolution plan.
Include details in your contract, from all material conditions to project delays and service warranties. If you are happy with the prospect of subcontractors working on your project, ask for the names and contact information of all the people who will be present at your home. This way you always have at least one contact person. Even before the project begins, it is important to know how the contractor intends to deal with subcontractors and construction supervision. Everyone on site should also be fully insured. Find out if the contractor has their own work team or if subcontractors are taking over the project. Other items that need to be reviewed include the legal payment of employees and the enforcement of workers` compensation, property damage and liability insurance. Membership in a reputable professional association is also a good sign. Similarly, find out if the contractor has already declared bankruptcy or if someone has already filed a lawsuit against him. Also get details of how long he or she is in business and under what name.
You should also know how an entrepreneur`s business is structured and where it is physically located. Workers` compensation insurance protects you from liability if a contractor is injured while working on your property. Be sure to hire a fully insured general contractor.