Instead of my usual “read the contract” rants, I’ve decided to equip you, the reader, the DIY’er, the “I can manage my own project” guy/girl who also has a day job and a family who wants to use the kitchen this century, for crying out loud - to not only protect yourself from shady contractors (they’re more common than you think), but to protect yourself from the mistakes and pitfalls that come with the jobs from reputable, honest, genuinely good contractors. It’s not always about looking out for the bad guy - contracts and construction jobs are complicated projects to manage, especially for you, who will probably do a project this size once in your lifetime, twice if you’re ambitious and have a bad memory.
Over the following weeks, I will give you some tips that I’ve learned (sometimes the hard way) from over 15 years in the industry –working in management positions in a general contractor company, a developer, and yes, as a homeowner. I’ve worked on all sides of this, and know what to look for, have seen what happens when folks trust too much in the “professionals” (step 1. Make sure they’re licensed and bonded, please) and realize that they’ve put their own homes at risk based on the promises of a stranger.
The beginners guide to contracts…….
There is a “List of Documents to be Incorporated Into the Contract” section that NEEDS to state a Date of Plans. This may sound petty, but do you know how many sets end up getting printed as your Architect makes little changes here and there? If the Contractor ends up with an old set of plans and builds your house to those….too bad, so sad. Want those updated plan changes? Pay baby, pay.
Secondly, review the “Schedule for Progress Payments “ thoroughly. One guy had all the correct legal stuff in it, specifically bolded per law “It is against the law for a contractor to collect payment for work not yet completed, or for materials not yet delivered”. He also had bolded “the down payment may not exceed $1000 OR 10 percent of the contract, whichever is less”. Then on the same page asked for more than 10% as a deposit! Aye, aye, aye. He also then stated a sum of money that would be due “at the end of each week for the duration of the project”. Did you get that? Doesn’t say he had to have any crews on the job or that any work would be done. Just that you would pay him that money. What??
More later, digest now….
