Juli Doty - Real Estate, Real Advice

Contractors

A new tool is available to homeowners looking for guidance when hiring a home improvement contractor. A website has everything from consumer tips to a list of contractors with complaints lodged against them. If you're a homeowner about to hire a contractor, the thought may have crossed your mind: what can I do to avoid a bad experience? A family's largest investment is the home. Improvements are a great way to increase equity if it's done right. Today State Attorney General Andrew Cuomo launched a website, a one-stop shopping site homeowners should go to first.

"Because if you've engaged a bad home contractor," Cuomo said, "they've started to do the work. You now have, at best, a legal argument with them. It's very hard to get back the money," he said.

The website currently lists more than twenty central new york contractors for shoddy or incomplete work, or for taking money without finishing the job. That web address: www.nyknowyourcontractor.com.

Get a Great Contractor

Talk to recent clients. Ask the right questions:

• Was the job done on time?
• Was the job done on budget?

Interview the contractor. Ask detailed questions such as:

• How long has the contractor been in business?
• Has the business every used a different name (This is a red flag)?
• Has the company ever been sued?

Visit a job site where similar work has been done by the contractor. Try to find a job that has been completed within the past six months - flaws can take time to show up.

Consider an architect if you are doing planning major structural work or room additions. Find an architect at aia.org or ask friends for referrals.

Make sure the contractors (and architect) are licensed and insured:

• Check (contractors-license.org) for your state's licensing rules. If the contractor does have a license, take down the number and call your state or local licensing board to verify.
• Liability insurance. This protects your house and property in case the contractor or his employees cause damage.
• Workers' compensation insurance. Without it you can be held responsible if someone is injured while doing work on your property.
• Insured subcontractors. The same liability and workers' compensation insurance that your contractor has should be carried by all the specialists (plumbers, electricians and others) hired.
• Check with the Better Business Bureau. How many complaints have been filed, if any? Remember misunderstandings do occur, so if there was a complaint, see if it was resolved satisfactorily.

Get at least three estimates, but try for five - and then ditch the lowest bid.

Finalize a contract:

• Get everything in writing. No detail is too small. Be sure and have the job completely scoped out.
• Specify brand, model, color and size of all materials used
• Labor to be performed
• Timeline to start and complete project
• Payment schedule for all parties - contractor, subcontractors and suppliers
• Warranty covering work and materials
• Contractor's obligation to get required permits
• Specify what the contractor will and won't do - including site cleanup and trash disposal
• Clause stipulating that no alterations or extra work may happen without a change order
• Mediation and arbitration clauses in case any part of the process goes awry
• Clause allowing you to back out of the contract within three days of signing it.
• There should be a clause allowing you to back out of the contract within three days of signing it.

Payments

• Don't make a large down payment. Try to keep it to 10 percent or $1,000 down, whichever is less.
• Make periodic payments throughout the contract.
• Don't pay final installment until after inspections are complete
• Do not make final payment until you are 100% satisfied with the completed job.