In many
instances
a
negative
contracting
experience
can be
easily
avoided
by
knowing
the
warning
signs
associated
with
unprofessional
contractors.
Here are
eight
warning
signs to
look for
when
interviewing
a
contractor:
1.
The
contractor's
name,
telephone
number,
address,
business
directory
listing
or other
credentials
cannot
be
verified.
A
contractor
who does
not have
legitimate
business
listings,
such as
a
telephone
number
or
address,
may not
be
running
a
legitimate
business.
2.
The
contractor
pressures
you to
sign a
contract
today,
using
scare
tactics
such as
a "today
only
discount,"
or a
"model
home
discount."
A
contractor
who
tells
you his
price is
"good
only for
today"
and will
increase
tomorrow,
or gives
you a
special
discounted
price
based on
using
your
home as
a "model
home,"
may be
pressuring
you into
signing
a
contract
immediately.
Contractors
who
pressure
you to
sign on
the spot
are not
looking
out for
your
best
interest.
While
there is
no
problem
with
signing
a
contract
the same
day a
contractor
comes to
your
home,
you
should
not feel
any
pressure
to do
so. Also
remember
that the
Federal
Trade
Commission's
three
day
right of
rescission
allows
you to
cancel a
construction
contract
within
three
days of
signing
it.
It is
important
to
choose a
contractor
you feel
comfortable
with.
Check
references
before
signing
a
contract,
and ask
the
contractor
to
accompany
you to a
reference's
residence
to ease
any
uncertainties
you may
have.
3.
The
contractor
does not
quickly
respond
to your
request
for
references.
Or once
you do
you
receive
references
from the
contractor,
the
contractor's
references
give him
a less
than
favorable
review.
4.
Licensing.
This is
less
clear
than it
may
seem.
Some
states
do not
require
contractors
to
obtain a
license.
Check
with
your
state's
licensing
department
or local
building
department.
Accordingly,
if your
state
requires
a
license,
make
sure
your
contractor's
license
is valid
and up
to date.
5.
Insurance.
Each
contractor
should
have
Workman's
Compensation
Insurance,
General
Liability
Insurance,
and Auto
Insurance.
Be aware
of the
form in
which
the
contractor
shows
you his
insurance
certificate.
Do not
accept a
photocopy
or fax
document.
Insist
that the
certificate
of
insurance
be
mailed
directly
to you
from the
contractor's
insurance
company
and that
the
certificate
names
you as a
co-insured.
6.
The
contractor
asks you
to pay
for the
entire
job in
advance
or pay
in cash.
Your
payment
schedule
should
relate
to the
total
dollar
amount
of the
job and
the
risks
involved
for the
contractor
(i.e.
special
orders
for
material).
Check
state
laws
concerning
limitations
on down
payments,
as well.
7.
The
contractor
asks you
to pull
or
purchase
the
necessary permit(s).
The
person
who
purchases
the
building
permit
is
responsible
for
ensuring
the job
is done
according
to local
building
codes.
This is
the
contractor's
responsibility,
not
yours.
If you
pull the
permit
and your
project
does not
meet
local
building
codes,
you will
have
less
legal
recourse
against
the
contractor.
Also, if
the
contractor
asks you
to pull
the
permit,
it may
signal
that the
contractor
is in
bad
standing
with the
local
building
department
and
cannot
pull the
permit
himself
or may
not be
licensed
at all.
8. A
contractor
should
not ask
you to
sign a
completion
certificate
for any
reason
before
the job
is
completed
to your
satisfaction.
Once you
sign a
completion
certificate
you are
stating
that the
job has
been
finished
and that
you are
satisfied.
If your
project
is being
financed
by a
third
party,
the
financing
company
usually
will not
release
funds to
the
contractor
until
you sign
the
completion
certificate.
The
delay in
funds
protects
you and
the
financing
company
by
ensuring
your
project
is
completed
to your
satisfaction.
If your
contractor
pressures
you to
sign the
completion
certificate
before
the
project
is
completed
to your
satisfaction,
the
contractor
may be
trying
to
receive
payment
before
he has
finished
the job.
Remember
to see
our
section
on:
Hiring
Tips
&
Project
Preparation |