Hawks, Leona K.

McCay, Tawnee

English

DigitalCommons@USU

HOME OWNERSHIP FACT SHEETSHow to Find a Reliable Contractor Leona K. Hawks, Professor, Extension Housing SpecialistLucy Delgadillo, Assistant ProfessorFL/HO-08 March 2002Have you ever needed to find a contractor and just didn’t know where to start?Inexperienced and unqualified contractors can cost thousands of dollars, especially if the workhas to be redone. The first step in finding a reliable and reputable contractor is to develop a listof possibilities. *Ask friends or relatives for names of contractors who have done satisfactory work. *Find out where local contractors purchase their materials and ask for recommendations.*Survey local real estate agents. They often know the reputable builders who work in thecommunity. Once you have your list of contractors, you need to determine their reputation and qualityof work. Talk to all of the contractors on your list to determine if you could work with them. Ifyou don’t like their personality, you surely won’t like it after working with them for awhile. Ask the contractor how long they have been in business. What responsibility does thecontractor assume for the work of the subcontractors? Who will be responsible for correctingproblems? Does the contractor belong to the local builders association and are they affiliatedwith the National Association of Home Builders? Does the contractor carry workers’compensation and liability insurance? Does the contractor have any registered complaints at theBetter Business Bureau? One way to check out contractors is to talk to their clients. Ask the contractor to providenames of people who would be willing to talk with you. Take the time to talk to the people andinspect the completed projects.When you talk to the clients, be sure and ask them these questions: Did they finish theproject on schedule and at the agreed price? Would the client hire that contractor again? Was theclient satisfied with the quality of their work? Did the contractor do what was promised in atimely manner.Find out if the contractor is licensed.  Membership in the National Association of HomeBuilders, the National Home Improvement Council, or the Remodeling Contractors Associationdoes not guarantee quality or reliability, but it may be an indicator of stability as well asexperience. The Home Builders Association, the Department of Commerce, Occupational andProfessional Licensing, Contractors Division in Salt Lake City (530-6436) and most citybuilding inspectors can provide lists of licensed contractors. Once you have decided on three or more contractors that are qualified, ask each of thecontractors to submit an official bid on how much the project will cost. Ask for bids from at leastthree contractors. Bids prepared properly can take considerable time. If a contractor is biddingagainst a large number of other contractors, they may not want to waste their time. It is a goodidea to inform the contractor how many other bids are being obtained. During the biddingprocess, pay attention to how well the contractor sizes up the project. Does the contractor takemeasurements, ask questions, and make suggestions?  After getting the bids, compare them.Deciding who gets the bid should be based on the detailed plans and specifications, how wellyou can communicate with the contractor, and the ability of the contractor to do a quality job.They should state exactly what must be done and where, and the kinds of materials that will beused. The bid should be well organized and clear.Once you select the best contractor, don’t forget the contract. The contract should be inwriting. The contractor will usually draw up the contract. Read it very carefully and make sureyou understand it. If necessary, an attorney should be consulted. Remember that after you hire acontractor, you have three days to back out of the deal without a penalty. Items to include in thecontract:•Who is to obtain and pay for the necessary permits?•By what date will the work be started and completed?•Will the contractor provide a written warranty of workmanship?•Any promises made by the contractor.•What quality, brand, and grade of materials will be used?•Exactly what work will be done?•What damages will be paid to the homeowner if the work is not completed on time?•Who will clean up and remove debris from the job site?•What provisions are included for protection of property near or in work area, includinglandscaping, driving over trees, or damaging the sidewalk?Other important items to include in the contract are:•The right of the owner to make changes, which will include a change order andagreement on the cost of the changes.•The amount the owner will pay to the contractor.•If applicable, an agreement that the work shall conform to local and state codes.•That the agreement frees the homeowner from all liens that may be placed against thejob for failure of the contractor to pay for materials, labor, equipment, etc. •The schedule of how and when payments are to be made. It is best to pay as workprogresses. Don't pay for work before it starts. Hold back the final payment until you aresure all of the work for the contract has been completed to your satisfaction.•Owner's right to terminate the contract.Most contractors try to do a good job and many of the problems can be solved by justtalking to the contractor. Sometimes, however, this method doesn’t work. A problem that is oftencited is that the contractor took the down payment to purchase materials, and the potentialhomeowner hasn't seen the contractor since. Another is that the job is complete and you havepaid the contractor in full. One week later the work falls apart, and another contractor must bepaid to do it over. If something like this happens to you there is help. You may want to consult a lawyer to get your money back. This approach shouldgenerally be used only if you have tried to contact the contractor yourself, and failed; if thecontractor refuses to give the money back; or if the amount of money attempting to be recoveredis substantial. Another way to get your money back is to bring a suit in Small Claims Court. However,you may only do this if the money you are trying to recover is a relatively small amount, usuallyno more than $1,000. If you can’t afford a lawyer, the county clerk can help you fill out thepapers. If you want a quick settlement, a case is usually heard within 30 days. However, you mayhave trouble collecting any money if the contractor has left town or is broke and unable to pay. The Attorney General’s office may provide assistance if there has been a violation ofconsumer law. Be sure to check with them if you think there has been a violation. The Better Business Bureau, which maintains a list of good and bad contractors, canoften settle disputes out of court. Your contractor may choose to settle rather than have a poorBetter Business Bureau rating.Sometimes things simply go wrong that are out of the control of the contractor. Someproblems may be due to the lack of planning, different points of view, well-intentioned mistakes,underbids by contractors or subcontractors, lack of necessary skills, wrong deliveries, judgmentcalls, or it is done right, but it just looks wrong. A good way to handle these mistakes is to checkthe contract agreement, keep good records, find out why it was done this way, stay calm and talkwith your contractor, step back and look at it, tear it out and do it over again, send it back, oraccept it and negotiate.If you use the information in this fact sheet you will be able to shop for a contractor withconfidence and the knowledge that will help you make the right decision.Utah State University is committed to providing an environment free from harassment and other forms of illegaldiscrimination based on race, color, religion, sex, national origin, age (40 and older), disability, and veteran’s status. USU’spolicy also prohibits discrimination on the basis of sexual orientation in employment and academic related practices anddecisions.Utah State University employees and students cannot, because of race, color, religion, sex, national origin, age,disability, or veteran’s status, refuse to hire; discharge; promote; demote; terminate; discriminate in compensation; ordiscriminate regarding terms, privileges, or conditions of employment, against any person other wise qualified. Employees andstudents also cannot discriminate in the classroom, residence halls, or in on/off campus, USU-sponsored events and activities.This publication is issued in furtherance of Cooperative Extension work. Acts of May 8 and June 30, 1914, incooperation with the U.S. Department of Agriculture, Jack M. Payne, Vice President and Director, Cooperative ExtensionService, Utah State University (EP/DF/03-02)

How to Find a Reliable Contractor

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How to Find a Reliable Contractor

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