Home Improvement Contractor

Dealing with contractors from the bid to the final payment.

Finding a quality home improvement contractor can be a challenging and time-consuming process. But it doesn't have to be. A quick education in the basic contract and hiring issues related to home improvement contractors will reduce your stress and help you avoid common and costly mistakes made by inexperienced homeowners.

What is a home improvement contractor?

Home improvement contractors can be divided into three basic groups: general contractors, specialty contractors, and design/build contractors. Specialty home improvement contractors handle particular tasks, while a design/build home improvement contracting company employs architects and designers for more complicated projects.

Your home improvement contractor is the manager of your home improvement or renovation job. A home improvement contractor hires and supervises a work crew and subcontractors, obtains all necessary permits, provides insurance for the workers, and schedules required inspections.

How to find a home improvement contractor

When shopping for a home improvement contractor, contact several different local firms and ask for a written estimate. In order to get accurate and comparable estimates, you will need to provide specific, detailed, and identical information to each firm about your home improvement job. Ask for referrals, and contact your local Better Business Bureau about each firm.

Don't assume that the cheapest home improvement contractor is the best deal. Check with your local government to see if contractors in your area require a license. Make sure that a home improvement contractor has all necessary insurance for workers and subcontractors before you hire him (read about mechanic's liens to see what can happen without insurance).

Referrals from friends or co-workers can often be the best way to locate a home improvement contractor. You can also do zip code searches online at sites such as www.nari.org- the National Association of the Remodeling Industry - or www.contractors.com.

Contractor contracts

It's part of the name, so you know the contract you have with your home improvement contractor is important. The following guidelines will help you protect yourself from unexpected costs and legal issues:

Put everything in writing

The contract you sign with your home improvement contractor should be detailed, specific, and clearly understood by both parties before work begins. The contract should state that the contractor must follow the written description of the project. If you wish to make changes, put it in writing, sign and date it, and have your home improvement contractor sign it.

Set a fair payment schedule

Some states limit the size of the down payment a home improvement contractor can receive. Schedule payments to be made as specific jobs are completed. Do not make your final payment until you have inspected the work, are satisfied with it, and know that all bills have been paid (see below).

Keep an eye on the work

Don't hover over your contractor at all times, but check in regularly to make sure the renovation is going according to the contract. That way if issues or problems come up, you can catch them before they develop into something larger and more expensive.

Protect yourself from liens

Before making your final payment, ask for and obtain a written statement from your home improvement contractor that all workers, subcontractors, and suppliers have been paid in full.

For more information on protecting yourself when dealing with home improvement contractors, visit www.ftc.gov.

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