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Tips for
Hiring a Contractor
The following text was taken from http://www.homeowners.org/,
a good place to find approved contractors.
Licenses
If you are going to hire a contractor to construct or supervise home
improvements, keep in mind that California contractors are required
by law to hold a license from the Contractors State License Board (CSLB)
for any work that exceeds $500 in value. Contractors that install only
one improvement (e.g., insulation) must hold that particular specialty
license (this is a "C" license). If three or more specialty improvements
are going to be needed (e.g., heating & air conditioning, masonry,
electrical, plumbing, etc.), the work must be performed by a contractor
who holds a general building contractors license (B-1 license). When
you shop around, insist that your contractors provide you with their
California Contractors State License identification card (looks like
a plastic credit card with name & license clearly shown). It is
always a good idea to verify the name and the license number with the
CSLB.
It is important to make sure that any license presented to you is valid,
and that it belongs to the person with whom you are speaking. Any work
valued at or more than $500 must be performed by a licensed contractor
and there must be a written contract. Avoid scams by checking the contractors
license number with the CSLB
automated license verification number at 1-800-321-2752.
It is important to remember that a contractor cannot "loan" a license
to any third party for the purpose of performing work any more that
you can loan your drivers license to someone else to drive a car.
Hiring a Contractor
Here are a few rules you should follow when you hire any contractor
to perform work. These rules are designed to protect you - and your
contractor - from any misunderstandings.
- References & Bids: Depend upon references
when selecting. Ask your friends, neighbors and associates at work
for references. Find out who others have used and recommended. Also,
ask for references at the hardware store; talk to a Realtor and do
not depend upon the Yellow Pages - that is only a list, not a referral!
Always interview as many contractors as possible (a minimum of three
is recommended). You'll also want to get bids from several contractors.
Check their references from people they've worked for in the past.
- Insurance: Make sure that the contractor has
appropriate insurance. Your contractor should have two types of insurance
in order to protect you while the work is being performed. They are:
- General liability insurance -
covers any accidental damage or injury that could occur
on your property during the job. (Your homeowners insurance will
not suffice).
- Workers compensation insurance - covers
possible work related injuries at the job site (your home). California
requires all employers, except sole operators, to have this type
of insurance. When working with "sole operators," there are very
specific rules which apply for your protection. You can get information
about these rules by contacting the CSLB or The League of American
Homeowners.
- Written Contracts: Insist on a written contract
that specifies brands, manufacturer's model numbers and all specifications
which apply. The contract should indicate the planned date of completion
and also include an agreement for the contractor and any sub-contractor
to clean up after the project is finished. Any special conditions
you have should be included.
- Contractor Payments: Be certain the contract
includes a schedule of payments for the complete job. Arrange contractor
payments so that the down payment (if any) does not exceed $1,000
or 10% of the contract, whichever is less. (Cal Bus & Prof Code
Section 7159). Also, only pay for work that has been performed - never
in advance! And remember, the payment schedule in your contract must
be spelled out in dollars and cents - not percentages!
- Subcontractors and Suppliers: When
interviewing contractors, ask the contractor for the names of his
or her primary material supplier(s) and then call upon them to inquire
about the contractor in question. Ask whether the contractor pays
bills promptly and whether or not the supplier would recommend the
contractor to any of their customers.
Don't make final payments until you have seen receipts for bills paid
by the contractor, or written waivers proving he/she has paid for
materials and labor on the completed job. Even if you have paid your
general contractor in accordance with the contract, if he/she fails
to pay any subcontractor or supplier, you may remain responsible to
subcontractors and suppliers who perform work or supplied materials
for your project. You bear the risk of having a Mechanic's Lien filed
against your home, if you have received a preliminary notice from
any subcontractor or supplier.
- Contract Changes: Once you have signed a contract,
make sure all contract changes are in writing and signed by you and
the contractor. Never rely upon verbal change order agreements.
References
The three most important references a contractor can provide concern
a current client and the two most recent clients for whom the contractor
has performed work. Here are some questions for you to consider when
interviewing the references:
- Was the job started on time?
- Was the job finished on time?
- Were there any surprises during the job?
- Was the job completed for the pre-agreed upon price?
- Did you find it easy to get in contact with the contractor while
the work was in progress?
- If you had this work to do over again, would you hire the same contractor?
- How did you handle changes to the original contract?
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