Industry Tips
Home Improvement
The BBB suggests that you solicit two or three bids for any remodeling work you are planning. Don't automatically accept the lowest offer. Make sure all bids are based on the same set of specifications and materials to be used. Ask for references and inspect finished projects. Check to see if the contractor is a member of a professional association, which has standards for members.
Make sure the contractor is in compliance with all local licensing, bonding, and insurance requirements, and that any necessary building permits are obtained.
Never sign a blank or partially blank contract. Some companies have a policy of charging a trip fee, to offset gasoline prices, in addition to the charges for the actual service. The BBB suggests that you inquire about trip fees prior to contracting with a company. Before paying, get a sworn statement that all bills for material and labor have been paid for by the contractor. Typically a down payment of one third of the total contract price is made with additional payments made after completion of each phase of work; final payment should not be made until work is completed and you have inspected the work.
You may wish to consider allowing the contractor to arrange for the financing of the job. If a contractor arranges the financing, the consumer may be able to hold the finance company responsible for any problems. Whenever obtaining financing, be sure that you fully understand the terms and conditions of the loan. Be sure to have complete details of the financing agreement, especially if a second mortgage of your home is used as security for the remodeling work.
You may want to inquire about inserting an arbitration clause into the contract in case any problems occur.
