Get at least 3 estimates or
bids.
Taking the time to get at least 3 estimates on each
repair is an important key in potential savings. The
level of work and supplies used with each contractor
could vary drastically in an estimate. An important tip
is to compare the bids by taking into consideration the
level of detail done by each contractor and the quality
of the craftsmanship and supplies used (name brand
appliances and other high quality variables). Be weary of
unusually low estimates. "If the offer sounds too good to
be true, it probably is!" {top}
Consider your options with
obtaining financing for your larger projects.
For your larger projects, you may wish to obtain
financing
through a personal loan, a home-equity loan, a bank or
credit union, or a savings and loan. As important as
getting 3 estimates with a contractor, you should shop
around for your funding. Your contractor may be able to
help you secure financing. Lending institutions may offer
Federal Housing Administration (FHA) loans. Beware of
anyone who tells you that the FHA approves the
contractors work or endorses the contractor. FHA does not
guarantee the work done by any contractor. {top}
SEE the contractors license,
and verify insurance.
Always review a copy of the contractor's pocket
license, and some other form of identification. The name
on the license should be the same as the name of the
contractor or the business name that is contracting the
work. You can also, call Contractors State License Board
at (800) 321 CSLB, or at http://www.cslb.ca.gov/
to verify that the license if valid. A valid California
Contractor's License is required for projects estimated
$300 or more. {top}
How do you verify the
contractors license?
License status information can be accessed from
Contractor State Licensing Board, CSLB, licensing
database. The status will not reflect pending updates
which are being reviewed by CSLB for subsequent database
updating. The available information may not reflect any
civil or criminal judgments or actions that have not been
reported to the CSLB.
For repairs due to claims on
your insurance, verify with your insurance company.
If your project is the result of damages covered by
your insurance, it is critical to check with your
insurance company to determine the extent of the coverage
prior to signing any contacts. {top}
Check local references.
Even though this service is a referral service, it's
also good to ask for the contractors for their
references. Verify that pervious customers have been
satisfied with the work done, and if it was done on a
timely basis at the agreed contact rate. Also, if any
changes did arise, was the contractor willing to make any
necessary corrections. If possible, obtain references
from material suppliers, and financial institutions to
determine whether the contractor is financially
responsible and has shown integrity in the industry.
Another valuable source of reference is the local
building permit offices. {top}
Other questions
to ask:
1. What is the projected start date and finish date?
What about weather delays?
2. Who will be the supervisor in charge of the
project?
3. How many projects has the supervisor done before
like this project?
4. Do you feel comfortable allowing this person in
your home?
5. What inconveniences to prepare for, like no water
or electricity? How long would they be turned off?
{top}
For larger projects, check the
status of the contractor's bond.
Bonding is required for larger jobs financed by
lenders, contractors, or owners. Some bonds are designed
to protect you against substandard work that does not
comply with local building codes. Bonds are not to assure
the financial or professional integrity of a contractor.
Bonds can be obtained from bonding companies for a
percentage of the contact price. Remember to recognize
the bond fee as a cost of the project. Bonds may be
classified as:
Contractor's License Bond - A bond with a
surety company or cash deposit of $7,500 with the State
is required of all licensed contractors in California.
Performance Bonds - A bond that guarantees the
project's completion according to the building plans and
specifications.
Payment Bonds - A bond that assures the owner
that no liens for labor and material will be filed
against the property.
Contractor Bonds - A bond that guarantees both
job completion and payment of all labor and material.
{top}
Verify that the contractor
has workers' compensation and liability insurance.
California law requires contractors with employees to
have workers' compensation insurance for property damage
and personal liability insurance. If a worker is injured
working on your property and the contractor does not have
insurance, you as the homeowner, are responsible for any
medical needs. Don't allow your homeowner's insurance
policy become your contractor's liability coverage.
{top}
Be specific of your
requirements in a written contract.
Spec out all the repairs you want done. Be very
specific of your needs and to what degree of quality you
are budgeted for on the improvements. Quality, quantity,
weight, color, size, and name brands should be clearly
stated on the contact. Obtain accurate plans or blue
prints. Approve the plans before work is started. A
written contact is highly recommended. ONLY sign a
contact if you fully understand all aspects of the
contract. Keep a copy of the contract for your records.
Ask questions!! An essential key to a successful
relationship with your contractor and a successful
project is communication. Over communicate if necessary
to ensure you get the results you desire. If any changes
arise, agree in advance that these changes must be
approved prior to the changes occurring in writing. Agree
that both the contractor and you sign the
revision/amendment to the contract. Allow extra time for
the project for any unforeseen changes.
Don't forget to include in the contract storage of
materials and debris, as well as cleanup and removal of
debris and materials, or any special requests to save
unused material or old appliances.
Keep records of everything that pertains to the job!
Include pictures of progress, any letters or notes,
contract including changes, invoices and bills, and
canceled checks. {top}
Three-day cancellation period
for a signed contract option.
The law requires a contractor to give you a written
notice of your right to cancel a contract within 3 days
of signing it, provided that is was solicited at some
place other than the contractor's place of business or
appropriate trade premised such as your home. If you
choose to cancel the contract, do this in writing by
registered mail and also call the contractor. After the
contract is canceled, you may sign another one with the
same contractor or a different one if you prefer.
{top}
Get Warranties in writing on
the contact.
The contact should also state the warranties for the
labor and materials including the duration of the
warranty. You should also request the warranties offered
by the manufactures of the materials or appliances
installed. {top}
Consider the potential of
liens.
Again, for your larger projects, you should protect
yourself from liens against your home in the event a
contact does not pay subcontractors or supplies. Local
laws vary, but you may be able to add a release-of-lien
clause to your contact. Another option is an escrow
account. Refer to our finance tips for more information.
{top}
Preliminary lien
notices.
You may receive a preliminary lien notice from a
subcontractors or material supplier. This does not mean
that a lien has been filed against your property. The law
requires you to be furnished with these notices to alert
you that subcontractors or material suppliers may have
lien rights. {top}
Energy efficiency must be a
consideration with new and remodeled buildings.
California law requires new and remodeled buildings to
meet or exceed certain energy efficiency standards. Some
financial agencies offer lower-interest loans for
remodeling. Utility companies, such as Pacific
Gas and Electric Company (PG&E), offer rebates on
purchase for energy efficient appliances. You may call
PG&E's SmarterEnergy
Line at 1 800 933 9555 or visit their web site. Also,
leading institutions may offer energy efficient
mortgages. Additional information on California's energy
efficient standards is available from the Energy
Standards Hotline at (800) 772-3300 or (916) 654-5106.
{top}
Obtain building permits.
Construction of new homes and many home improvements
require building permits from the local building
department. Usually contractors obtain these permits
because they know permits are required. Ultimately it's
the owner's responsibility for making sure the required
permits are obtained, and that the final inspection is
done when the work is completed. A good way to insure
this is done, is by including this in the contract. Refer
to our listing
of building permit departments for your city.
{top}
Pay in installments.
Depending on the work required, contractors are
entitled to a sizable down payment. California law
required that the amount of the down payment for any home
improvement contact (except for swimming pools) may not
exceed $1,000 or 10 percent of the contract price
(excluding finance charges), whichever is less. Swimming
pool down payments shall not exceed $200 or 2 percent of
the contact price (excluding finance charges), whichever
is less.
The initial installment should cover the contractor to
have enough money to buy the materials to finish the
work, and also allow the owner to have enough money left
on the last installment to ensure the finish date has a
satisfactory completion. For larger projects escrow
accounts are available at a bank. Refer to our finance
tips for more information. {top}
Mechanic's Liens.
If you do hire a general contractor, be aware that a
subcontractor or supplier could file a "Claim of Lien" or
"Mechanic's Lien" against your home even if you paid the
contractor. Potentially you could pay the bill twice to
avoid foreclosure proceeding. Do not allow construction
to start until your contractor gives you a copy of the
Information Notice to Owner about Construction
Liens. {top}
Hire a general contractor for
larger improvements like additions or kitchen
remodeling.
If the work requires more than two specialty
contractors, you should hire a registered general
contractor. (Remodeling a kitchen, for example, usually
requires a plumber, electrician, and carpenter.) This is
not required, but it's highly recommend if you do not
have the time and the skills to cover the task
thoroughly. This job includes responsibilities of state
and federal taxes, workers' compensation, and other legal
liabilities, and you are to assume responsibility for the
overall job (not the person you hire). Do your homework
before jumping into an unknown arena, it is best to leave
these matters to your licensed general contractor.
{top}
Arbitration clause.
A contractor may have an arbitration clause to settle
disputes in the contract. This clause could enable you to
resolve disputes more quickly and enforce your warranty
without litigation. Small claims court and advice from an
attorney should be considered before arbitration for
larger sums of money. {top}
Filing a complaint with the
Contractors State License Board (CSLB).
Contractors State License Board was originally
established in 1929. CSLB licenses and regulates
contractors in more than forty license classifications
that constitute the construction industry. You can
contact them at (800) 321 CSLB, or at http://www.cslb.ca.gov/.
{top}
For easily observable defects, California law limits
the complaint to be filed up to four years from the date
when the act or omission occurred. This maybe extended if
there is an express, written warranty issued by the
contractor. A ten year statute of limitations exists for
certain latent structural defects in the construction.
{top}
Contacting the Contractors
State License Board.
Contractors State License Board was originally
established in 1929. You can contact them at (800) 321
CSLB, or at http://www.cslb.ca.gov/.
|
California State Licensing Board
Headquarters
|
|
9835 Goethe Road
Sacramento, CA 95827
P.O. Box 26000
Sacramento 95826
(916) 255-3900
|
Please use this laws and notes as
guidelines. These laws are based on the Contractor State
Licensing Board of California. The laws may vary from
state to state, as well as counties and other
jurisdictions.
