Choose Your Contractor Carefully (Part 2)
Get it in writing
If everything checks out, it’s time to sign the contract. In addition to the basic business information (address, contact numbers, business and GST numbers), the contract should have a detailed cost breakdown (materials and labor), indicate start and completion dates, and explain warranty details. Any irrelevant sections of a pre-printed contract should be crossed out or labeled “N/A.” For really large jobs, such as a home addition, you might consider having a lawyer read over the contract before signing. Think of any legal fees as added insurance.
Upon signing, the contractor will probably ask for a deposit, typically 10 to 20 percent of the total job. If they insist on something higher, this should tip you off.
And, it goes without saying, you’d be wise to avoid “cash deals.” For lengthy projects, it’s possible that the contractor may ask for installment payments to be made when certain parts of the job are completed. This payment schedule should be tied to the completion of specific stages of the job and written into the contract.
A done deal
Now that you’re probably terrified to let anyone with a tool belt within 1,000 feet of your home, it’s a good time to point out that the vast majority of contractors are honest, hard-working people who aren’t out to take advantage of anyone. To use the old clich?, it really is only a few bad apples that spoil the barrel. With just a little extra legwork, you should be able to pick the right contractor.
Contractor questions
Here’s a sampling of general questions you should ask for each estimate:
– How long have you been in business?
– What kind of work do you specialize in? (Keep in mind that the true meaning of “specialize” is not an open-ended shopping list.)
– How many jobs similar to this one have you done?
– Do you have the appropriate licenses? (Ask to see these, and take note of license numbers.)
– Will you use your own crew for the work or will you subcontract part of the job? Are the subcontractors licensed?
– Are you and any subcontractors covered by workers’ compensation and liability insurance?
– How do you deal with potential health hazards such as
asbestos removal?
– Why is your price higher (or lower) than the competition’s?
– Are cleanup and garbage disposal included in the price?
Warning bells
“I’m working nearby, and I have some
extra materials…”
“You have to act today to get this amazing offer…”
“I can give you a deal if you pay cash…”
“We’d like to make your home a showcase for our work…”
“Twenty-five percent is a standard deposit…”
Fraud-stopping tips
– Get at least three estimates.
– Cash “deals” can cost you more in the long run.
– Ask for names of previous customers, and contact them.
– Contact your local Better Business Bureau and government licensing bodies.
– Get as many details as possible written into the contract.
– Know your legal rights.
– Hold back 10 percent of the total fee for 45 days after completion of the work. While affording you an opportunity to inspect the completed job carefully before making the final payment, the real intent of the law is to protect you from liens that unpaid subcontractors are allowed to place against a home they’ve worked on if they’re not paid by the main contractor.
Toronto Contractor | Toronto General Contractor | Toronto Home Improvement
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