NEW YEAR/NEW HOME REMODELING PROJECTS? Thoroughly Check Out That Contractor!
TROUBLED U.S. ECONOMY MAY FORCE FINANCIALLY-STRAPPED SERVICE PROVIDERS TO SNUB THEIR SUB-CONTRACTORS, NOT COMPLETE WORK!
Headaches with contractors hired to complete home repairs or improvement! Virtually every homeowner can share at least one story where work was delayed. Of poor quality. Or, in a few cases, needed re-doing by another contractor.
A few may have brought lawsuits against contractors not completing their work professionally or correctly. Or not warranting their services. Some even go out of business, or simply leave town, leaving the frustrated homeowner holding the bag.
Consider our own experience when planning projects around the house in 2009.
A dozen or so years ago, my sister-in-law and her family encountered trouble with a contractor they hired to build a room addition in the Chicago Suburb of Warrenville IL. The work began professionally, with workmen completing demolition work and framing on schedule. My brother-in-law was referred to the General Contractor, and even knew him socially.
But the builder's financial troubles soon became apparent. Rough interior work was left untouched for weeks at a time. Then, different workers would do some of the inside work piecemeal. Sub-contractors would complain that they hadn't been paid. The general contractor wouldn't return phone calls - and, later, his phone was disconnected, his storefront business closed. Havoc ensued in the family, and they eventually got new workers and family to help them complete the job - although flaws remain to this day, such as improperly leveled floors, and settling cracks.
Attempting to find and sue the original general contractor went nowhere. Their home improvement budget was blown, and unpaid sub-contractors filed mechanic's liens for payments, which were subsequently settled, with the liens removed. But this took several years, and created considerable headache!
How do you protect yourself when hiring home contractors?
Here are seven tips. Some are directly from our Team, while others come from research in the January 2nd Edition of the Chicago Sun-Times, by Associated Press Reporter Melissa Kossler Dutton.
Kossler Dutton interviewed Angie Hicks, who founded Angie's List, an Indianapolis IN, membership-fee-based online directory of home repair and improvement contractors of various stripes, as well as Shari Purves-Reiter of the Washington State Department of Labor and Industry, and Kip Morse, Regional Governor for Better Business Bureaus, and President of the Central Ohio Better Business Bureaus.
1. Check company credentials thoroughly, and ask for examples of previous work. Be wary if the contractor refuses to give you references, even if they are well known and advertised in your area. Be especially careful with those who have relocated their business locations frequently. Our Team has had negative experience, for example, with roofing contractors who offer "lifetime guarantees," but have a habit of moving around the Chicago area frequently, with slight changes to their company name, to avoid living up to their warranties.
2. Get a complete list of all sub-contractors the general contractor plans to hire. Contact them, and inquire how the general contractor's payment habits. Have the subs been paid in a timely fashion? In full? Have they had any disputes with the general? Again, if info is lacking - be concerned. Very concerned!
3. If unsure about any company, check their credentials with the Better Business Bureau, or on Angie's List or a similar service. Call your local Chamber of Commerce and check with neighbors to see if they have any knowledge of poor performance by the contractor you are considering. Some verification companies and government agencies, such as the Chicago Department of Consumer Affairs, may also help you check credit credentials of home contractors, and whether the firm has been sued by other homeowners.
4. Verify the general contractor and all of his sub contractors has adequate business insurance, including liability insurance and bonding. Insufficient insurance? You might be left responsible if a worker gets injured while completing work on your home.
5. Check that the company is properly licensed, if required, in your community. Make sure the company complies with all local permit requirements - and be wary if the contractor is evasive when asked about permit or license requirements. The City of Chicago, and most Chicago Suburbs, require proper, current, licenses and permits for many types of construction, electrical, and plumbing work.
6. Get a Written Contract, spelling out, in detail, specific work schedule and Payment Terms. Minimize your down payment - be concerned about contractors who require sizable down before work begins, and never make your final payment until ALL work is completed to your satisfaction. Written confirmation of work schedule, perhaps building in a small contingency for unanticipated delays, may incentivize the company for finishing early, or penalize a company for delays in the project.
Be aware that most contractors' form contracts contain language that favor the contractor over the homeowner; before signing any contract, review with your lawyer or professional adviser, if you are unsure.
7. Get Lien Waivers from the General Contractor and all of the sub-contractors after their portions of the work is completed. No waivers, no final payment! If possible, pay the sub-contractors directly, rather than passing their payment through the general. This assures with certainty that the subs will indeed be paid. Avoid the potential for mechanic's liens against your home!
Any further questions or concerns? Dean's Team maintains our own Professionals Guide, via our website. It lists Chicago Area Companies previously used or personally checked out by our Team members.
Or, contact us via phone or email for a referral. We would rather you consider working with someone we have had successful experience with, and with strong reputations in business, versus a company you do not know.
DEAN MOSS & DEAN'S TEAM CHICAGO
