handling a contractor for house work, insights?

[abc]

how should i handle installment payments, pay by check, what assurances i can set in place so he doesn't either run away with my cash and/ or use shoddy materials after we agreed on the price for the project etc...

thanks alot, never did this before, but renovating a home.

 

[Lvis]

References, and lots of them. It's best when you can talk to people he has done business with.

I'd check with the BBB, too. It's best if someone you know recommends someone, sometimes the references given by the contractor are their brother in law, etc.

 

[Pepsei]

I usually pay 1/2 up front, and the rest after. And I only use people that I or my father knows.

 

[MustISO]

Yep, get references and check them out. Don't call them, actually go to the house and see the work. Never pay more than half up front. I like to do 1/4 at set intervals. Always request a contract and if additional work is needed the contract needs to be updated. Get everything in writing!!!!!

 

[KarenMarie]

references!!!!
and get everything in writing.. BEFORE they start.

 

[abc]

anyone wrote up a contract and had the contractor sign it?


say we got a price quote for a bathroom, a kitchen, living rooms and bedrooms to be renovated... was quoted a price.. but we want to participate in approving/vetoing what parts he will be using...

we dont really care about what brand drywall he'll use or what kinds of nails, but we would care about what brand recessed light cans he'll be installing... etc...

 

Originally posted by: abc
anyone wrote up a contract and had the contractor sign it?


say we got a price quote for a bathroom, a kitchen, living rooms and bedrooms to be renovated... was quoted a price.. but we want to participate in approving/vetoing what parts he will be using...

we dont really care about what brand drywall he'll use or what kinds of nails, but we would care about what brand recessed light cans he'll be installing... etc...

Thoes should be handled in the contract by lines such as:
"lighting fixture allowance of XXX amount of dollars, to be chosen by home owner"
"bathroom floor materials expense allowance of XXX dollars"

You should get an allowance of whatever per sq foot or per fixture or whatever in the contract.
You can amend that contract if you want to spend more or less.

 

[abc]

thanks sampson

 

[Garet Jax]

Originally posted by: abc
how should i handle installment payments, pay by check, what assurances i can set in place so he doesn't either run away with my cash and/ or use shoddy materials after we agreed on the price for the project etc...

thanks alot, never did this before, but renovating a home.

Depends on the state. In Maryland, the contractor is not allowed to take more than 1/3 up front. In addition, Maryland maintains their own licensing for contractors. Without it, they are not certified to work in the State as a contractor.

You should also check to make sure all employees are bonded and that the contracting firm maintains its own insurance (so you aren't liable if something goes wrong).

 

[Garet Jax]

Originally posted by: abc
anyone wrote up a contract and had the contractor sign it?


say we got a price quote for a bathroom, a kitchen, living rooms and bedrooms to be renovated... was quoted a price.. but we want to participate in approving/vetoing what parts he will be using...

we dont really care about what brand drywall he'll use or what kinds of nails, but we would care about what brand recessed light cans he'll be installing... etc...

Absolutely do this. If it is not in writing, it was never said. Handshake agreements don't exist anymore. Search online, you will probably be able to find a few contractor contract templates. Grab one modify it to your liking and have them sign it. In all likelihood though, they will have a contract they want you to sign. Modify that one and then sign it.

 

[AlienCraft]

Something that hasn't been mentioned here is the release from any liens by any subcontractors the General may call in. In some areas, until the sub is paid, there is a legal encumberance on the title. Be sure that all subs sign off on this if this applies to you.
All other posts apply especially the references part. Happy former customers are your best insurance, imo.

 

[EagleKeeper]

Check with you bank - they will have a section on home building that can advise you.

Even if it is not a home being built, the same logic will apply.