Adding a room, renovating a basement, or doing some much-needed repairs? Finding a good contractor is important — a home improvement project gone wrong can cost you. A good ad isn’t proof a contractor does quality work. Find out for yourself. Check with friends, neighbors, or co-workers who’ve had improvement work done, and check out a contractor’s reputation on online ratings sites you trust. Get written estimates from several firms, keeping in mind the lowest bidder may not be the best choice. Also important: know the signs of a scam.
If so, make sure the subcontractors have current insurance coverage and licenses, too, if required.
To find builders, remodelers, and related providers in your area that are members of the National Association of Home Builders, visit nahb.org. To find detailed information about a builder, service provider, or remodeler in your area, contact your local home builders association.
For smaller projects, you can pay by check or credit card. Many people arrange financing for larger projects.
Some state laws limit the amount of money a contractor can request as a down payment. Contact your state or local consumer agency to find out the law in your area.
This way, if the work isn’t going according to schedule, the payments to your contractor also are delayed.
how change orders are handled. A change order is a written authorization to the contractor to make a change or addition to the work described in the original contract, and could affect the project’s cost and schedule.
a detailed list of all materials including each product’s color, model, size, and brand. If some materials will be chosen later, the contract should say who’s responsible for choosing each item and how much money is budgeted for it (this is also known as the “allowance”).
information about warranties covering materials and workmanship, with names and addresses of who is honoring them — the contractor, distributor, or manufacturer. The length of the warranty period and any limitations also should be spelled out.
what the contractor will and won’t do. For example, is site clean-up and trash hauling included in the price? Ask for a "broom clause" that makes the contractor responsible for all clean-up work, including spills and stains.
any promises made during conversations or calls. If they don’t remember, you may be out of luck — or charged extra.
Keep a log or journal of all phone calls, conversations, and activities. You also might want to take photographs as the job progresses. These records are especially important if you have problems with your project — during or after construction.
Besides being satisfied with the work, you also need to know that subcontractors and suppliers have been paid. Laws in your state might allow them to file a mechanic’s lien against your home to satisfy their unpaid bills, forcing you to sell your home to pay them. Protect yourself by asking the contractor, and every subcontractor and supplier, for a lien release or lien waiver.
Some state or local laws limit the amount by which the final bill can exceed the estimate, unless you have approved the increase.
If you have a problem with merchandise or services charged to a credit card, and you’ve made a good faith effort to work out the problem with the seller, you have the right to contact your credit card company and withhold payment from the card issuer for the merchandise or services. You can withhold payment up to the amount of credit outstanding for the purchase, plus any finance or related charges.