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Things To Know
 

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Things to know about hiring a contractor:
 
  • Make sure he/she has a state contractors license … the higher the number the newer the company.
  • Make sure he/she has worker's comp. Check www.cslb.ca.gov
    Get references and be serious enough to follow up on checking them out. Be Courteous … you, yourself would want to be a reference too!
  • Understand that there is a plan, permit and inspections process and that these things take their own time. There may also be CC&R’s to comply with.
  • You’ve heard the motto … “If it sounds too good, it usually is”. That is especially true in the construction business. Almost all contracts are “open contracts” in one way or another … clauses that allow for materials shrinkage, unforeseen circumstances, changes and addendums. These things can happen by no fault of either the homeowner or the contractor in that items may even have been missed during plan check. Yes, just because you have an approved set of plans doesn’t always guarantee that it is right.
  • “Shopping for Price Only” is almost certain disaster. When faced with 3 proposals don’t choose by what you see at the bottom right hand corner. Read the content of what you are getting and it should also contain what is not included. In other words you don’t want to assume that everything is included. That low price may not be so low after all!

There are only 3 ways to hire a contractor in a contractor’s capacity ...

  1. TURNKEY – Call him/her FIRST and let them take care of the entire job from plans, permits to running around to finishing the project. The Turnkey job can also include financing. The contractor should be able to give you an estimate within 10% to 15% before “approved plans” come in unless either the owner or government/local requirements make severe changes. Owner is allowing the contractor to do everything. Any change orders/addendums wanted by the owner will be extra and an addendum/change order to the original contract will be created on that date of the order. Owner has only partial control once the contract is signed and the contractor pulls the permit. Owner only has the options of hiring other people or doing work themselves if given permission in writing by the contractor who originally pulled the permit. Sometimes a waiver of liability by the owner accompanies this. Contractors’ liability is limited to only the project they have done.
  2. CONTRACT – Call him/her AFTER you have the financing in place, an approved set of plans along with any city, county or CC&R’s requirements including any engineering and calculations of all kinds that are required to do the job. Note: A reliable estimate cannot be given without these requirements. This is where the contractor pulls the permit, he is in charge of the job and any change orders/addendums wanted by the owner will be extra and an addendum/change order to the original contract will be created on that date of the order. Owner only has the options of hiring other people or doing work themselves if given permission in writing by the contractor who originally pulled the permit. Sometimes a waiver of liability by the owner accompanies this. Owner has only partial control once the contract is signed and the contractor pulls the permit but contractors’ liability is limited to only work they have done.
  3. SUB-CONTRACT - Call him/her AFTER you have the financing in place, an approved set of plans along with any city, county or CC&R’s requirements including any engineering and calculations of all kinds that are required to do the job. Note: A reliable estimate cannot be given without these requirements. In this way the owner is performing this task him or herself as an owner/builder. The owner pulls the permit and assumes the liability for the project itself. The main reason to do this is to save money but another plus is more control over the job but even that can be somewhat limited. Like the Contract, the sub-contractors liability is only limited to the job they performed only. The mediation between sub-contractors can also happen with the owner in the middle and lacking the needed knowledge or foresight to settle the dispute. Unfortunately in such cases, most of the time the owner is left with the problem. Since the owner/builder pulls the permit and assumes more risk he/she has more leeway in hiring and firing contractors however since it is a contract, [not hourly] owner / builder may have to pay additional charges beyond just the job.
  • Always get a contract in writing. If any problems arise during or after the job and you don’t have a contract in writing, how can you prove what job was done. The contract should be specific in what is included and also what is not included. The contract should include: Notice to owner options, name of company, address, all phone numbers; contractors state license number and all details and exclusions of that contract. “As per plans” means that the main information of the item is on the plans. Note: “Approved” set of plans does not always mean it is complete or sometimes even right so there can be and addendum change, yes even after the fact especially if the inspector catches something that the plan checker did not.


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