Remodeling: 9 Tips on Finding a Contractor

It's that time of year when everyone thinks about sprucing up the house a little. Maybe you want a bigger kitchen or updated baths. Perhaps you've been dreaming about a family room or a snazzy master suite. Before you sign on the dotted line with a contractor here are some words of advice:

Some Tips on Selecting a Contractor:

1. Get recommendations and references. Talk to friends, family, co-workers or neighbors who had work done. If you see a place in the neighborhood talk to the owner and see if they liked the work that was done.

2. Obtain at least three written estimates from contractors. Be sure the estimates are based on the same type of work so that you can make comparisons. I recently checked outexterior painters and made sure they all had the same items included in their estimates. Check the contractor's license and status with the State of California . You want to know if there have been any complaints filed and if they hold a current license. You will find state guidelines on how much a contractor can charge for an initial deposit and how payment works at each stage of completion. This site is a very valuable resource for all consumers ... use it!

3. Get the names of suppliers and ask if the contractor makes timely payments. If a contractor is a slow pay he may be having financial difficulties.

4. Contact your local building department to check for permit and inspection requirements. Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo all have building and planning departments. Visit them in person and find out what their requirements are first hand. Be sure to get a permit for all work to be done. Be wary if the contractor asks you to get the permit or says you don't really need one when the city says that you do. It could mean the contractor is not licensed or has some major complaints filed against him.

5. Insurance..this is a big red flag....Be sure your contractor has the required personal liability, property damage and worker's compensation insurance for his/her workers and subcontractors. Most will need to post some type of bond with the state. Also check with your insurance company to find out if you are covered for any injury or damage that might occur. If the contractor doesn't have insurance you could be liable for a major lawsuit if someone is hurt on the job.

6. Make sure you have a written contract that spells out exactly what work will be done, the type and quality of materials that will be used, warranties if any, timetable for completion, the names of all subcontractors, the completel price of the job, the schedule of payments, and penalties if work is not completed on time... or a bonus if work is completed early.

7. The State of California has specific regulations about the amount of a deposit a contractor can charge as a down payment. Be sure to read the requirements so that you don't give out a huge deposit and the work isn't done.

8. Be sure you have all your financing in place before you begin the work. You don't want to be half way through the job and run out of money. Also be sure to factor in cost over-rides about 10%-20% of cost of the entire job should be about right. If you start making changes in the middle of a job it will cost you extra.

9. Don't make the final payment or sign a completion release until all work has been signed off by the city, you are happy with the work completed and you have verified that all subcontractors and suppliers have been paid. If they haven't been paid you could wind up with a mechanics lien against your home. This happens more often then you think so be careful. This doesn't mean that you can withhold money due your contractor for a long period of time.


Red Flags:

1. Someone who stops when you are working in the yard to offer their services. Good contractors never do this!

2. Someone who happens to have material left over from a recent job.. I worked for a broker who actually fell for the we have left over asphalt to do your parking lot... he gave them $200 in cash and never saw them again.

3. Someone who quotes a price that's out of line with other estimates. If it is too good to be true.. there is usually something wrong.

4. Someone who wants an immediate decision to get the special price .. this is an old ploy.. don't fall for it!

5. Someone who doesn't have a cell phone, home/business phone or a business address. If you can't contact them by phone immediately.. there is something wrong.. drive by their business address.. if it's a vacant lot or the Federal building this is a red flag.

6. Someone who drives a truck without a sign or business name or has out-of-area plates. Most contractors want advertising about who they are and how to get in touch with them..and they are local.. it's a long drive everyday from Oregon.

7. Someone who demands payment for the entire job up front. This is a no no for even the smallest job. Never pay a full amount for anything upfront!