A lot of homeowners decide that it is a great idea to invest in renovating their property because of the current heat of buying real estate and because there is a promise of a higher selling price.
How to avoid home renovation disaster?
Here are a few tips on how to protect yourself.
1) Determine what you want to do with your home
You need to think about your project in as much detail as possible so that you can make sure that every aspect of your project is discussed and well thought off.
You also need to make all of the expectations clear when you are talking to contractors. You also need to consider the entire scope of the project, the timeframe of the project and whether any of the building permits or the professional inspections will be required.
2) Check credentials and do your research
Make sure to ask questions and that you seek verification about your prospect contractors like their experience, licensing, their credentials, their general liability insurance and their worker’s compensation and any kind of workmanship that warranties or guarantees.
It is also important to ask how long the company has been on service and operating under the same brand name and whether the company has operated under any other brand name.
You can ask the same questions about the different members of their team and you can even ask to be introduced to each of them. You should also ask about their Better Business Bureau record, their web presence and their online reviews.
3) You should get more than one estimate
You should get more than one estimate so that you can get a clear idea as to what the rate is for the project that you have. You should never accept an estimate over the phone, or without any contractor to inspect your property. You should always get a breakdown of the labour costs, the commitment to a timeline and the material cost.
4) You must sign a contract
You must have a signed contract and this should be done before any of the work starts. This is critical in establishing what the agreement is between the parties and what you can expect from each other.
You should consider the provisions which contemplate what happens if there are any aspects of the contract that were not complied with. This document will be paramount if ever anything goes wrong and there is a lawsuit waiting.
You must make sure that you carefully review any of the contract to identify whether the contractor is seeking to preserve lien rights to your property in the event of a failure to pay.
There are contractors and suppliers that are usually under the strict deadlines to place a lien on a property so the failure to make a payment on time can have a major consequence since once a lien is placed, it can cost to have it removed.
These kinds of contracts come with a 10-day cooling off period, which then means that once you sign the contract you can have 10 days to cancel the contract for any sort of reason with no cost at all, provided that the work has not started yet.
5) You must not pay upfront
If your contractor insists on getting paid right away for the job, you should be wary. A good contractor will not ask for an advance payment. If they insist that they need a deposit to pay for the materials for the project, then you must pay for the materials yourself and supply them to your contractor so that they can begin the work.
If you do pay a deposit to your contractor, then you must never pay more than 10% of the contract price. If you pay your contractor more than 10% then it will be difficult for you to get the money in return.
Davrie is no stranger to arts and creativity. Through her home-improvement blog, https://buildersandhammers.com/, she translates her expertise into easily digestible words and seeks to connect with similarly minded businesses to help home owners and do-it-yourselfers achieve their living comfort. Other than being a writer, she’s also a digital nomad, a digital marketing nut, and enjoys spending time at the beach.