So I paid $5,800 for my education, but you can get it for free here by just reading the advice below:
- Soliciting multiple bids can often produce the best prices for work, but you also increase your chances of being contacted by scam artists.
- When receiving a contract, ensure the contract specifies dates. My contract said what he would do and how much I would be charged for those services and when those fees would be paid, but because it did not specify dates, I have an uphill fight to prove abandonment.
- Make allowances in the contract for weather if necessary, but keep it constrained.
- Your contract should also include details like permits, what happens for unexpected costs (e.g. rotted wood that was not visible), order of work, etc.
- Your contract should stipulate a right to inspect/approve the final work product. If you can work it, you might even try to reserve the right to have the work inspected by a third party and give the contractor the ability to correct items done poorly/wrong or face a financial penalty.
- Mine was a large contract with multiple items (retaining wall, privacy wall, painting house, repairing/refinishing pool deck, finishing patio to match pool deck, repairing damaged woodwork). Part of my problems occurred because I allowed work to begin on every single project without seeing any completed. Hindsight being 20/20, I wish I had built milestones into the contract and paid a portion at the completion of each milestone.
- Do NOT pay large amounts up front. I’ve heard 10% down payment is a limit, but I might even go 20%... but my greatest regret is I gave ~%70 up front. L If the contractor won’t begin work without significant down payment, proceed with GREAT caution. Also be open to other possibilities (like escrow companies). There are some that provide escrow services for 2%~5%.
- Verify the business is listed with the BBB. They don’t necessarily need to be BBB approved/registered- that’s another story, but the BBB should have some record of their history as a company.
- Don’t fall for ‘quick incentives’. For example, part of the hook that got me was “My crews just finished a job today and I don’t have another one lined up. I’ll give you a 10% discount on the total job if they can start tomorrow.” Incentives are okay, but in this case I accepted the incentive and abandoned my ability to perform a thorough background check.
- Do a THOROUGH internet search. I did a one or two google searches initially with no red flags. However, since problems started to develop, I performed deeper searches. When I started Googling his phone number, business address, his name, home address, etc., things started to appear- things that had I known in advance, I *NEVER* would have accepted this contract.
- Get a picture of the contractors official ID (Drivers license is best) if they will allow. This is the one thing I did right and has given me the most valid data to start my internet searches.
- Stick to the original plan as defined in the contract. Do not let scope creep enter in. If you find yourself in a position that you must expand the initial agreement, spin it as a separate contract with its own terms and conditions.
- Ask for copies of all receipts for materials- if necessary, build it into the contract. I didn’t do this so now a certain amount of materials was delivered to my house but I have no real idea the value/quantity of what was left.
- Take pictures of EVERYTHING before work begins so you can show the beginning state compared to the completed state.
