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INDUSTRY AWARENESS

Employing a Contractor

Employ a contractor with an established business in your area. 

Check references. 

Verify that the contractor is a member of the Certified Master Builders their education and are fiscally responsible.  It is essential for remodeling contractors to stay informed about the ever-changing state and federal laws, regulations, and building codes.  To verify the contractor is a member of Certified Master Builders Corporation, go to www.certifiedmasterbuilder.com.

Verify that the contractor has liability insurance.  Ask the contractor to have the insurance company fax or mail the certificate of insurance directly to you stating that you are the certificate holder.

Verify that the contractor is registered with the State of Texas.  House Bill 730 became law on September 1, 2003 and all contractors are required to register. To verify this, go to www.trcc.state.tx.us.

Your remodeling contractor will be a part of your daily life.  He will know a lot about your personal life:  from how you look in the morning to how you look after a hard day’s work.  Know what you’re in for before you start!  When selecting a contractor, you must feel comfortable with him and be able to communicate with him so that your project will be completed as you have anticipated.  Going through a remodeling project can be one of the most difficult and stressful undertakings that you have ever done.  From the first day it becomes very apparent that things around the house are going to be different for a while. Your home has now become the job site.  You start to get the feeling your privacy is being invaded by complete strangers. This is why it is so important for you to choose the right contractor for your project.

 

Contracts

A well-written contract is a critical step in maintaining your budget and can prevent costly mistakes or additions to the scope of your budget. 

Make sure the contract spells out what the contractor will and will not do, what the contractor is responsible for purchasing on your behalf and what you are responsible for purchasing. If you are soliciting more than one bid, compare the bids for scope of work and quality of work.  Make sure you are comparing all phases of the scope of work on even ground.  For example, you have asked for bids from two different contractors:  one estimate comes in at $100,000 and another at $85,000.  Why is there such a huge difference?  Does the $85,000 bid include everything that the $100,000 bid does?  Chances are that it doesn’t.  Are the allowances in the $85,000 bid high enough for the quality you want?  If a contractor puts in an allowance for carpet at $20 per square yard, is $20 per square yard carpet the quality you want?  Chances are the $100,000 contractor has allowed for a higher quality of carpet in his estimate.  If you hire the contractor with the $85,000 bid, in the end, with change orders and extras that were not included in the original contract, you will pay at least the $100,000 and probably more. 

Make sure the financial terms of the contract are understood and listed in the contract.  The total price and the payment schedule should be listed.

As required by Federal Law, a three-day Right of Rescission must be included in the contract.  The Right of Rescission gives the homeowner the right to cancel the contract within three business days of signing it. 

As regulated by State Law, a contract cannot be signed in the contactor’s office or at your home, and the contract must be notarized.

A sample warranty should be included in the contract covering workmanship for one year, HVAC, electrical, plumbing for two years, and structural for ten years.

As required by the Texas Property Code, you have the right to ask for and receive a list of subcontractors who will be performing work on your project, and a list of suppliers the contractor will use.  If you do not want this list, a Waiver of Subcontractors and Suppliers must be included in the contract and signed at the time of the contract signing. 

A Disclosure Statement must be present in the contract as required by the Texas Property Code.

Planning, Designing, and Budgeting

Ask your contractor what inconveniences you will incur when the remodeling begins.  Will your kitchen be unavailable for your use?  For how long?  What other areas of your home will be unavailable for your personal use during the remodeling process?

Save money by planning ahead.  Go through the design process first and choose everything you want to include in the new room(s), from appliances to light fixtures.  Be sure your contractor includes all your product and material selections in the contract to avoid confusion and unnecessary change orders.  Include the model, size, color, and any other specifications necessary.  It is also wise to save 10-20% of your budget to allow for items added to the scope of work.

Product choice is the number one way to decrease the cost of your remodeling project.  Pay attention to how labor-intensive some design features can be, as this will increase the cost of the project.

Compare products and their prices carefully before you make final decisions.  Make decisions based on value and quality, not just price.

Careful planning will increase the value of your home and customize your living space to your needs.

 

 General Tips

The most important step for you is to find a professional remodeling contractor who is familiar with the building codes and laws in your area.

 A well-written contract can prevent costly mistakes or additions to the scope of your budget.  It is a critical step in maintaining your budget.

Save money by planning ahead.  Go through the design process first and choose everything you want to include in the new room(s), from appliances to light fixtures.  Be sure your contractor includes all your product and material selections in the contract to avoid confusion and unnecessary change orders.  Include the model, size, color, and any other specifications necessary.  It is also wise to save 10-20% of your budget to allow for items added to the scope of work.

Product choice is the number one way to decrease the cost of your remodeling project.  Pay attention to how labor-intensive some design features can be, as this will increase the cost of the project.

Compare products and their prices carefully before you make final decisions.

 Make decisions based on value and quality, not just price.

 

Interview Potential Contractors

 Important questions to ask a potential contractor:

    How long have you been in business?  Look for a company with an established business history.

      Who will be assigned as the project supervisor for my job?  Who do I contact if the project supervisor is not available?  Be sure to get names and phone numbers.

     What is the time frame for starting the project?  What is the estimate for completion?  How early will the crews normally begin work?  When will the crews normally quit for the day?  Will you be contacted about delays and changes in the schedule?  Will the crews be working on the weekends or on holidays?

      What is the contractor’s approach to a project of this scope?  This will give you an idea of how the contractor works and what to expect during the project. 

     Does the contractor have liability insurance?  Ask for insurance certificates to verify coverage.  Make sure the contractor doesn’t just hand you a copy of the insurance certification; have the contractor contact his insurance company and the insurance company mail you a certification.

     Does the contactor have a list of references?  The contractor should be able to supply you with a list of references and you should call the references.

     What percentage of the contractor’s business is repeat or referral business?  This will give you an indication about the company’s customer satisfaction.

      Will the contractor obtain permits from the city in which you reside?  Never obtain your own permit for your project unless you are doing some of the work yourself.  If the contractor does not pull the permit, the city won’t have a record of the project.

 

Questions to Ask References

Did the contractor communicate well with the homeowner?

Was the homeowner pleased with the quality of the contractor’s work?

Was the homeowner satisfied with the contractor’s business practices?

Did the contractor keep the homeowner informed about their project?

Was the homeowner comfortable with the trades’ people the builder/remodeler subcontracted to?  This is important, as some of the subcontractors will be spending a considerable amount of time in your home.

Was the job completed on schedule?

Was the “punch list” finished in a timely manner?

Would the homeowner use the contractor again without hesitation?