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Set a budget – before you are starting to interview contractors and other professionals, determine a budget and stick to it. Squire away 20 percent of your budget to cover unexpected expenses.
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Figure out the size and location – we have a designer that can guide you.
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Vet the contractor – Ask for proof of up-to-date liability, bond, property –damage and workman’s compensation insurance, and licensing (license can be taken away in the event of too many unsettled complaints). Check out an older project to see how the contractor and his crew treat the job site. Call the contractor’s material suppliers and see if he pays bills on time. Ask for references – those are the most valuable resources. Ask specific questions about the contractor such as: was the job done on time? Was the work satisfactory? Would you refer the contractor to a friend or family? You can also contact the agency – contractor state license board or the state registration to see if any complains has been filed.
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The importance of a license – In California, a general or specialty contractor—and this includes even a handyman you may hire—is required to hold a valid contractor’s license in the license category in which he or she will be working in order to perform any work valued at $500 or more. This $500 includes the cost of both labor and materials. Remember --- Unlicensed contractor can underbid licensed contractors because often they don’t have the expenses of a contractor’s license, a city license, worker’s compensation, and other insurance and expenses licensed contractors have. However, their workmanship is often inadequate and their material inferior. They also may disappear as soon as they have been paid, leaving the homeowner with no address for them and no resources.
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Review the contract – the document should outline every step of the process, from obtaining building permits to the final clean site and include a timeline noting when each will occur. It should specify makes, models, and material choices. Put any change in writing and have everyone read and sign it.
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Plan out appliance location- this will help the planning process, and it will make the work easier.
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Establish a payment schedule – A deposit of 10 percent is typical, followed by a series of two or three lump payments tied to either specific dates or points in the project.
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Update your insurance – Before work starts, increase your policy to reflect the future value of your home. Consider buying a builder risk policy, which covers theft, vandalism, accidental losses, and damage during construction.
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Signing the contract – anything you sign constitutes a contract, be sure you know what you are signing. Before you sign a contract, be sure it includes the following information and provisions:
*** The name, street address, and local telephone number of the contractor.
*** If you must obtain a loan to pay for the project, the agreement should be valid only if you obtain financing at given rate.
*** A written description of all work to be done, including a detailed description of the kind and quality of materials to be used.
*** A bid based on the job not by the unit (hour, gallon, board, etc.)
*** A price breakdown for both labor and materials.
*** Starting and completion dates.
*** The schedule for releasing payments to the contractor.
*** A written statement reiterating any oral promises made by the contractor or sales representatives, including any warranties on material or labors.
*** Contractor will obtain the necessary building permits.
*** A building permit is generally required whenever structural work is involved or when the basic living area of a home is to be changed. If your contract does not provide that the contractor will obtain the permits and he doesn’t, you may be held legally responsible.
Do not get any permit yourself, if you do, you will be considered to be the contractor and you could be held liable if the work does not comply with the building codes.
*** If you want changes after you have signed the contract, be sure they are spelled out in a signed “change order”.
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Manage the day-to-day – Remove all your personal items from the work area to prevent damage and theft. Once the job is under way, inspect the job site and speak with your contractor every day to check on progress. Remember, a pot of coffee and a smile goes a long way.
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