Feature Articles
Hiring a Contractor
Lisa Hamilton-Hill, Housing and
Environmental Design,
College of Human Environmental Sciences, University of
Missouri – Columbia
With homeownership comes the inevitable: at some point, repairs need to be made. Although most contractors are trustworthy and fair, home repairs remain one of the most common types of consumer complaints. Hiring a contractor to do those repairs can sometimes be confusing and overwhelming but if you prepare an action plan in advance, the process of hiring a contractor can be smooth and without surprises. Using the following guidelines will help you find a reputable contractor who will perform repairs in a timely manner and for a fair price.
- Decide exactly what you want done. This will help
you communicate to the contractor so he or she can prepare a
realistic estimate of the time and costs involved to make
the repairs. If you need more information before gathering
estimates, consult your library or local hardware store with
questions.
- Ask friends and neighbors for recommendations. If
you know someone who has had a recent repair similar to the
repair needed in your home, ask what their experience was
like. Did the contractor finish the job within a specified
time? Was the job on budget according to the contractor’s
estimate?
- Get at least three estimates. While this is
always recommended for large jobs, you might consider doing
the same for smaller projects. How do you determine when to
get an estimate? Consider how big a financial risk you are
willing to take. For some people that might be $500 or more
but for others it might be less. Read the estimates
carefully – the lowest estimate is not always the best
estimate. Also consider how well you communicate with the
contractor.
- Make sure the estimate is detailed. What work
will be performed? What materials are needed, and how much
will they cost? By what date will the contractor complete
the work? Is a building permit required? When will payments
from you be made? Get all this information in writing. If
there are conflicts later on during the project, you can
point to the written estimate as your source for resolving
those conflicts with the contractor. Verbal estimates or
promises are at best difficult, and at worst impossible, to
enforce.
- Check out the contractor’s credentials. Does the
contractor have a permanent business address? How long has
he or she been in business? Is the contractor licensed in
the city or county where you live? If he or she is a member
of the Better Business Bureau have there been complaints and
if so, were they resolved satisfactorily? Have you seen
previous work and talked to previous customers of the
contractor? Did you seek out this contractor, or did he or
she knock on your door or phone you with an offer to do
repairs? Be wary of contractors who seek you out. Although
some legitimate businesses seek customers this way, this is
a common signal of a fraudulent contractor.
- Set a payment schedule. For large jobs, DO NOT
pay in full before the job is completed. Set a clear
timetable of when and in what amounts payments will be made
to the contractor. For example, you might pay 1/3 of the
total when the job begins, 1/3 halfway through the project,
and the final 1/3 upon the project’s completion.
- Get a lien waiver. A lien waiver states that a contractor has received payment from you and waives any rights to your property in the event that the contractor does not pay sub-contractors or materials suppliers. Lien waivers protect you against having to pay for the job twice, or from having to pay more than your contract amount for the job. In Missouri, sub-contractors and materials suppliers can put a lien on your home if your contractor has not paid them. Discuss the need for a lien waiver when you get estimates. Get the lien waiver signed upon your first payment on the project. Most Missouri attorneys and banks can provide a sample of a proper lien waiver.
Source: HomeWorks: Maintaining Your Housing Investment. University of Missouri Extension.
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Last update: Friday, April 27, 2007
