Always get a written agreement before giving someone money to begin work. That contract should provide for payment in installments which are scheduled to coincide roughly with the amount of work performed. The larger the final payments are, the more incentive the contractor has to finish the job on schedule. The completion date and the amount of each payment should be specified in the written contract. The contract should also specify the exact job to be done and the materials to be used (listing them by brand name and model numbers wherever possible). You may want to consult with local building supply dealers or home improvement experts in a local consumer agency to ensure that the materials suggested are of reasonable quality. Never make final payment until the job is done to your satisfaction: it’s your only leverage.
Many state laws create “materialmen’s liens” on a homeowner’s house or property. This is a legal right which gives suppliers of materials (such as siding, roofing, and lumber) the right to seize your property if their bills are not paid. While the general contractor will hire and pay subcontractors to supply materials, a dishonest general contractor may abandon the job and leave you stuck with the subcontractors’ bills. The existence of liens is an important reason to make sure the contractor is financially responsible and of good reputation. It is wise to consult a lawyer before undertaking an expensive transaction involving your home, to ensure that you are not placing what is probably your most valuable asset in jeopardy. This can be remedied by putting a clause in the contract requiring the contractor to provide you with an affidavit that all materials suppliers and laborers have been paid before final payment is due the contractor.
Seven Danger Signs
Beware of any home improver who:
1. Has no license (where law requires one).
2. Asks you to sign a Certificate of Completion before the work described in the certificate is performed.
3. Maintains no permanent business location.
4. Claims to be working “in the neighborhood” and has extra materials left over.
5. Offers to make yours a “model home” in the neighborhood.
6. Will not supply names of previous customers whom you can call for references.
7. Pressures you to decide quickly or lose the chance to get the work done.