Bakerdog
05-24-2005, 01:39 AM
Everyone will tell you to check references, but many of these horror stories involve well-recommended contractors. In fact, my wife and I were on the verge of hiring a highly-recommended GC when another friend/acquaintenance offhandedly asked who we were planning to use. Our response led to a horror story equal to the worst posted here.
A written agreement (preferably drafted or reviewed by a lawyer) is extremely valuable insurance. For small jobs, just write your own agreement and spend some time brainstorming the points that are important to you.... binding or nonbinding estimate; start/completion dates; jobsite hours; payment; weather delays, disputes regarding workmanship, etc.. Expect to negotiate that a bit as some things you ask for may not be doable for the contractor, or he may not want to do them without being compensated (e.g. agreeing to firm dates for completion).
The apparent informality of the estimation process (obviously, this does not apply to everyone) can really trip up homeowners, especially when they are excited to be getting started. Sure, lots of people will work on your house without a written agreement, because they are going to get paid (most of the time) due to a mechancis or materialmen's liens. Those times they don't get paid are more likely because the homeowner / developer went broke than due to the absence of an agreement. Long story short, when there is no contract, DO NOT UNDER ANY CIRCUMSTANCES PAY ANYTHING, EVEN PARTIAL PAYMENT, BEFORE COMPLETION OF THE WORK. Sure, you might still get your work done, but nothing gets work done right and ontime like a check due at completion.
Be ready for all kinds of sob stories. Some counters would be to directly pay the suppliers for materials (assuming you are there to supervise delivery and make sure nobody is returning the extras). You can also offer to put money in escrow or give a credit card # etc if they need the security of knowing you won't stiff them.
The simplest way to avoid arguments is for both parties to put their agreement in writing. If you are presented with a contract prepared by a builder or contractor, you should read it extremely carefully. (Wait until the builder leaves and read it at your leisure...and ask a construction lawyer to review it. That cost of that review (probably a few hours aat the partners' hourly rate) could be well worth it later.
Many contractors are gregarious and enjoyable people. The salt of the earth, with colorful expressions, firm handshakes, and easy smiles. This can make them easy to like, and easy to trust. Most are honest, basically. But avoid like the plague the thought that you might be insulting your new best buddy by asking him to agree in writing to whatever it is that you want to do. Business people are asked all the time to reduce their agreements to writing.
Even with a written agreement, things can and will come up that you haven't anticipated. You could also agree to terms that protect the contractor but not you. Finally, a dishonest person is going to be a pain (at best) to deal with no matter what the contract says.
Good luck!
A written agreement (preferably drafted or reviewed by a lawyer) is extremely valuable insurance. For small jobs, just write your own agreement and spend some time brainstorming the points that are important to you.... binding or nonbinding estimate; start/completion dates; jobsite hours; payment; weather delays, disputes regarding workmanship, etc.. Expect to negotiate that a bit as some things you ask for may not be doable for the contractor, or he may not want to do them without being compensated (e.g. agreeing to firm dates for completion).
The apparent informality of the estimation process (obviously, this does not apply to everyone) can really trip up homeowners, especially when they are excited to be getting started. Sure, lots of people will work on your house without a written agreement, because they are going to get paid (most of the time) due to a mechancis or materialmen's liens. Those times they don't get paid are more likely because the homeowner / developer went broke than due to the absence of an agreement. Long story short, when there is no contract, DO NOT UNDER ANY CIRCUMSTANCES PAY ANYTHING, EVEN PARTIAL PAYMENT, BEFORE COMPLETION OF THE WORK. Sure, you might still get your work done, but nothing gets work done right and ontime like a check due at completion.
Be ready for all kinds of sob stories. Some counters would be to directly pay the suppliers for materials (assuming you are there to supervise delivery and make sure nobody is returning the extras). You can also offer to put money in escrow or give a credit card # etc if they need the security of knowing you won't stiff them.
The simplest way to avoid arguments is for both parties to put their agreement in writing. If you are presented with a contract prepared by a builder or contractor, you should read it extremely carefully. (Wait until the builder leaves and read it at your leisure...and ask a construction lawyer to review it. That cost of that review (probably a few hours aat the partners' hourly rate) could be well worth it later.
Many contractors are gregarious and enjoyable people. The salt of the earth, with colorful expressions, firm handshakes, and easy smiles. This can make them easy to like, and easy to trust. Most are honest, basically. But avoid like the plague the thought that you might be insulting your new best buddy by asking him to agree in writing to whatever it is that you want to do. Business people are asked all the time to reduce their agreements to writing.
Even with a written agreement, things can and will come up that you haven't anticipated. You could also agree to terms that protect the contractor but not you. Finally, a dishonest person is going to be a pain (at best) to deal with no matter what the contract says.
Good luck!