Below are some questions to ask yourself if you're thinking about starting a construction project. Check the answer by hovering over the question.
1) How do I assess a contractor?
Ask for a list of referrals from your contractor.
Call the customers and talk to them about their experience with that contractor.
Ask to see some projects that were just completed or in progress.
Call the Department of Labor and Industries toll free contractor registration information line at 1-800-647-0982. Ask Labor and Industries if there is pending action against the bond or if there has been action taken against the contractor in the past.
Call the Better Business Bureau to see if any unresolved complaints have been made.
2) What should be included in a basic
general contract?
The total amount of the contract and a schedule for payments.
A method for handling change orders including change of contract amount and change of completion date, if necessary.
An exact description of all work to be performed including equipment, materials and finish schedules.
A blueprint or drawing of floor plans, details and elevations for your project. More detail is needed for larger projects.
A detailed project schedule including start and completion dates.
A designated plan for obtaining plans and permits from the local building department.
A clean-up and debris removal plan including who is responsible for protecting existing finishes and paying solid waste disposal fees.
A stipulation for daily work hours including earliest start time and latest finish time.
Ask for lien releases from your contractor and sub-contractors to be provided when final payment is made.
The contractor's signature as well as your own.
(Remodeling News, 1996, p. 2)
3) What information should I request
from my contractor?You should ask for a copy of the company's general contractor license, city license, contractor's bonding agency, bond number and liability insurance.
4) Why should I ask for lien releases from
my contractor and sub-contractors?The sub-contractor lien releases show that your Contractor has paid the sub-contractors in full. This means the sub-contractors cannot make a lien against your property. The General Contractor's lien release states that he will not make a lien against your property if payment is made in full. If there were large deliveries from vendors to your site, you should also ask for lien releases from those vendors.
5) Why should I hire a licensed, bonded
and insured contractor?
You can easily check if there were any claims against the contractor.
You are covered if the contractor damages your building or personal property.
The contractor must pay his vendors or he will lose his bond and right to do business.
Since the contractor must pay his vendors to stay in business, you are less likely to get a lien on your property from his vendors.
If you hire someone who is not licensed, bonded and insured, there may be no records available on past problems with that person or firm.