Home Remodeler Screening Tips

Every consumer undertaking home remodeling deserves a high quality project that is completed on time and within budget.  A competent contractor not only will make the process easy for you, they will improve your quality of living, and at the same time increase the value of your home.

Here are 10 valuable tips to help you make an informed decision when you chose a contractor to remodel your home.

1.  Start by checking all the companies you are considering online at www.cslb.ca.gov and www.bbb.org. Google each company followed by “reviews” to see what other people are saying.   What seniors should know before they remodel.

2.  Only consider contractors who are licensed, bonded and insured. In California, contractors are not required to maintain general liability insurance. Choosing a company who cannot provide you with proof of general liability and worker’s compensation insurance puts you, the homeowner in serious risk if a worker gets injured or causes damages to your property.

3.  Everything should be in writing starting with a “scope of work”, which is the narrative part of the contract.  The plans, home improvement contract including start/completion time and scope of work document makeup the entire agreement.  If the scope of work is written clearly and concisely, with no gray areas, there should be no misunderstandings.

4.  California license law requires that homes built or remodeled prior to December 31, 1977 must be tested for asbestos and prior to 1982 for lead.  If any either of these hazardous materials are discovered, remediation must be completed by an independent firm who is properly trained and licensed.  You may want to insist that testing be completed before for you finalize the home improvement contract.  For more information click here

5.  Part of the contracting process should include you approving the construction plans.  Make sure you fully understand what is on the plan and what is excluded before signing off.

6.  If there are contract allowances, go out shopping to confirm the amounts are sufficient to purchase the caliber of fixtures and finishes you desire this will avoid costly over runs that lead to change orders.

7.  By California State Law, the following documentation must be provided to you by the contractor when you enter into a property improvement:  Home Improvement Contract, Notice to Owner form, Check Out Your Contractor form, California License Law Notice, Information About Commercial Liability form, Notice of Cancellation (2 copies)

8.  Most well established contractors would not ask for a down payment.  By California law, a contractor is only allowed a 10% down payment or $1,000, whichever is less.

9.  Check the payment schedule provided by your contractor to make sure there are milestones that require inspection tied to when you pay where possible.  There should be a 5 – 10 percent retention held until final inspection is approved and all punch list items are completed.

10.  You have the right to ask for proof that subcontractors and vendors are paid.  Demand lien releases at each stage before making the disbursement.

Scam artists are always thinking of new ways to squeeze more money out of honest people and run away without doing any work. Being the victim of such a crime is a horrible experience and you can prevent an incident by knowing in advance what the current home renovation scams are and avoid them all together. Here are eight well known scams that you should watch out for. (Image Source)

Payment First, Work Later: A true sign of a scam is when the contractor asks for payment upfront before he has done any of the work. Although it sounds like an obvious rip-off, many people are caught up in the heat of the moment and will end up agreeing to pay in full for the job before construction has begun. There is a very high chance that the person will take the money and run. Unless you know the guy personally, close the door on them and find a reputable contractor to bid on the job.

One Time Only Sale: The oldest trick in the book for a business is to offer someone a, “one-time only” special that will never be available again. The tactic puts a lot of pressure on the customer to make an immediate decision, which usually ends up being a bad one. Trust your instincts and realize that there will always be another sale. Instead of making a decision, let the contractor know you will wait until you receive other bids for the job. The person might seem angry at the time, but if they really want your business they will come back again with another sale.

No Credentials: The best way to pick out a scam artist from the crowd is by checking their credentials. Even if you trust the person, always ask for a reference and possibly take a look at their previous work. Make sure they are an actual licensed and insured contractor before ever getting started. You can contact the local license board and Better Business Bureau for trustworthy information about any contractor’s credentials.

Loan Financing Assistance: One of the scariest scams happening to normal people looking for a home renovation is when the contractor helps them set up a loan that is actually a cover for stealing your money, securing kickbacks, or even transferring the deed on your house. They will be enticing with their offer, like an extremely low interest rate for a large loan, but do not ever go through your contractor for a loan. Always use your personal bank for a home renovation loan, refinancing, etc. If you think your contractor is legitimate, at least have a lawyer look over the paperwork to be sure you are not being duped.

“Take my word for it”: When you are ready to undergo an expensive home renovation, never trust someone’s “word.” Always triple check the paperwork and make sure that everything that was verbally agreed upon is actually written down, legally binding the contractor to the promised work. You will be very disappointed if you depended on simple trust in the beginning and in the end the renovation was only half complete with the contractor nowhere to be found.

Leftover Supplies or Working Nearby: Scam artists know that people trust their neighbors and will play on that weakness to get you to use them for a renovation job. The person will simply walk up and knock on your door, offering to give you a steep discount on the leftover supplies from their job down the street or a slick deal since they are already working in the neighborhood. The offers might sound great, but tell the guy you will take a look at their work and solicit other bids for your project before committing to his offer. Generally speaking, contractors doing cold calls to your door like this are never reputable contractors to begin with. An honest company waits for customers to seek them out through trustworthy channels.

Fake Contractor: If a contractor shows up to bid on your job and has an unmarked truck, an out-of-state license plate, or doesn’t even have proper tools, be sure to check their credentials before you ever let them inside your home. The person can be a robber trying to get inside your house to see what valuables they can steal. A few common offers (from an unknown contractor) that are known to be scams include driveway sealant, chimney repair, hot tar roofing, and duct cleaning. If you need these services, call a reputable source to bid on the job.

New Problem During Work: A scam that often goes unnoticed is when a contractor will be half way through the job and notice that there is a major problem that needs to be fixed before continuing the work. They will give you a new quote for payment and materials to do the extra work and if you don’t know exactly what to look for, you will simply agree to fix the new “problem.” Often, there is no real problem and the person is simply trying to scam you for more money. During tough economic times, some companies will add even small problems to the bill that you usually wouldn’t look too much into. Don’t be fooled, ask an unbiased third party to take a look and offer their advice on the issue. Even if you do end up needing the work done, at least you know for sure you are not being ripped off.

Expert knowledge. Customers turn to their contractor for guidance, experience and knowledge.  Another words, a home remodeler should get the big pictues.  All the ins and outs of custom home remodeling including trends, products, code requirements and best practices.

Up-front pricing. Homeowners want to know how much your the entire remodeling package will cost up front before you start.  The only way to feel confident the remodeling firm is providing an accurate quote is with a preliminary plan and you shouldn’t  have to pay design fees to find out.

Warranty. By law, home improvement contractors must warranty non-structural workmanship for only 1 year.  Chances are, a remodeler who is willing to warranty their work for longer has the confidence in his or her quality and is not just building to minimum standards.

Honesty.  An honest home remodeler is one who admits when he doesn’t have an answer to your questions and does the research.  It is important that you trust your builder and feel confident that he is detail oriented.  Everything should be clearly written and thoroughly understood up front.

Value. 

A reputable contractor adds value by doing extra things on the job over and above the scope.  It may be an upgrade or additional work to make the project better without charging the homeowner.

Options.  A competent contractor will provide options and costs if there are different ways of accomplishing your improvements.  He or she will also give you honest opinions when asked.

Home Remodeling Tips – The ABC’s of Home Remodeling

Ask your friends and relatives about their experiences with remodeling, and whom they’ve hired.

Beware of contractors that advertise price. There is no way to 100% accurately estimate your project sight unseen. A detailed on-site inspection is the only accurate way to truly estimate, an online quote is one way to get the ball rolling.

Call the Contractors State License Board at 916-255-4041 and the Better Business Bureau (BBB) at 858-496-2131 to get valuable information about remodeling… before you remodel.

Do not choose a contractor only because they present the lowest price. If you are considering only the lowest bidder, beware! Quality of materials or workmanship shows. And, as the years go by, it shows even more.

Everything must be in writing. It’s your right… demand it. A complete set of project specifications that you can understand is vital. Also, insist on a formal design plan. Without it, there is no way you can receive an accurate quote.

Follow through. An important part of remodeling is the feeling of confidence with the people that will be working for you. Remember, salesman and designers do not hold hammers. Insist on meeting the Project Manager that will be responsible for your remodel. If your contractor doesn’t have a Project Manager… brace yourself and prepare for problems.

Get references. Before you choose a contractor, call some of his customers that are presently under construction, and clients whose work was completed within the past 3 years. Ask lots of questions. You might even ask if you can visit their project.

Have patience. Do not be rushed into decisions. Take whatever time you need to feel completely comfortable with the contractor you choose.