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Article #5894

CONSUMER TIPS ABOUT BUILDING CONTRACTORS

#5894
From: Kenneth Willis
Date: Mon, 15 Apr 1996 00:00
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EVEN ENVIRONMENTALIST NEED TO OCCASSIONALLY HIRE A BUILDING CONTRACTOR TO 
DO REPAIR WORK OR TO ADD A ROOM. HOPE THIS CONSUMER INFORMATION IS OF 
HELP TO YOU.  IF YOU FEEL THAT THIS TYPE OF INFORMATION SHOULD NOT 
REAPPEAR IN THIS NEWSGROUP, DROP ME AN E-MAIL WITH YOUR SUGGESTIONS ON 
HOW TO IMPROVE.  THANK YOU!  LETS WORK TOGETHER TO KEEP CALIFORNIA 
GREEN!!!


Hiring Tips for Remodeling Contractors 
provided by
The League of California Homeowners,
(a non-profit consumer group for homeowners and home buyers alike)

Here are some easy tips on hiring a home remodeling contractor prepared 
by our association. For more information and questions, you can call our 
office at (909) 483-5142, (in California: 1-800-692-HOME) or look us up 
on the World Wide Web at:  <www.lch.org/lch>

Tip  #1:  California, like many other states, requires contractors to be 
licensed.  No matter what state you live in, always make sure that any 
license presented to you is valid, and that it belongs to the person to 
whom you are speaking.  A popular scam involves the use of  a license 
which does not actually belong to the person bidding the work.  It is 
important to remember that a contractor cannot �loan� a license to anyone 
for the purpose of performing work  anymore than you can loan your 
drivers license to someone else to drive a car. 
In California, any type of contracting work which exceeds $300 in value 
must be performed by a licensed contractor.

Tip  #2:  Make sure that the contractor has valid 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 -  To cover any accidental damage that could 
occur on your property during the job.  

Workers compensation insurance - To cover possible injuries to workers at 
the job site.  In California, like many other states, will require all 
employers to have this type of insurance.
  
Note on Sub-Contractors Insurance:
If your contractor will be using sub-contractors, besure to review their 
insurance certificates.   Should your general contractor tell you that 
the identity of the subs will not be known until the job is started, that 
is a bad sign.  Don�t hire that contractor!

Tip #3:  References:  The three most important references a contractor 
can provide concern their current client and the two most recent clients 
for whom they have performed work.   Here are some questions for you to 
consider when interviewing the references:
	(a).  Was the job started on time?	
	(b).  Was the job finished on time?  
	(c).  Were there any surprises during the job?
	(d).  Was the job completed for the pre-agreed upon price?  
	(e).  Did you find it easy to get  in contact with the contractor 
while the work was in progress?  
	(f).  If you had this work to do over again, would you hire the 
same contractor?

Tip #4:  Suppliers.  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?

Tip #5:  Contracts.  Remember these fundamental rules:
	(a).  Never give a contractor cash, and never provide any type of 
payment without a written contract.
	(b).  Never pay a contractor more than 10% of the contract as a 
down payment after the contract is 	signed.  In California, 	
the law says down payments are 10% or $1,000, whichever is less!
	(c).  Always develop a materials list.  Specify the exact 
materials, parts, product codes, etc.
	(d).  As the work progresses, you will use a system of 'progress' 
payments to pay off the contract.  These payments should be made at the 
end of each step of actual work.  Example:   The foundation has been 
poured and is set.  A payment is due for the concrete and all related 
labor, or,  the framing is completed, then pay for the lumber and the 
labor costs.
	    Also, remember this, various stages of your project will 
require a building inspection.  Example, electrical, plumbing, framing, 
etc., all require a sign-off by the building inspector.  It is common to 
require that you see the sign-off by the building inspector before you 
make the progress payment.  The inspector is an impartial third party and 
he or she will not sign off until the work meets approval.
	(e).  Withhold at least 10% of the contract amount to be issued 
as a final payment.  Do not make final payment until you have reviewed 
the completion notice and have a lien release for each sub-contractor as 
well as material supplier.  Also, you  should have a final approval from 
your local building and safety department.

Tip #6.  Paperwork.  Keep a good file with all of your paperwork.  All 
receipts, bills, the contract, copies of the building permit(s), etc.  If 
it pertains to your job, no matter how insignificant you think it is, 
keep it!

Questions?  Do not hesitate to contact us.  Our e-mail address is:  
<Lchome@ix.netcom.com>   You are welcome to visit our Web Site at: 
<http://www.lch.org/lch
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From: Kenneth Willis <kwwillis@ix.netcom.com>
Subject: CONSUMER TIPS ABOUT BUILDING CONTRACTORS
Date: 1996/04/15
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