Spring is just a month away, so if you have a home improvement project in your plans this year, this is a great time to begin researching contractors and gathering detailed quotes for a low-stress experience.
You can turn to BBB to check out companies you’re interested in hiring, gather a list of BBB accredited businesses to consider and even use our get-a-quote service to let BBB accredited businesses provide you with a quote for your project. BBB also offers tips to guide you through the steps toward hiring a trustworthy contractor on our Home Improvement HQ page.
Once you’ve done the research, interviewed candidates and found the company you’d like to hire, it’s time to work out the details and get everything in writing. That should happen before you make any payments.
Here’s questions to consider as you work with your contractor to complete a detailed contract that can serve as a resource for keeping timelines, budgets, responsibilities and relationships on track.
What is the project scope? Start by defining the project in as much detail as possible.
This should spell out the type of work, materials needed (including manufacturer, brand name), grade or quality of the materials that will be used, any subcontractors needed, completion date and/or targeted milestone dates for different project stages, target budget expectations and design specifications.
The quality of materials is an especially important aspect. Many construction-related disputes filed with BBB involve concerns that inferior products were used. In many of these cases, we find that either there’s been no written contract in place or the contract failed to include what grade of products will be used for the job.
What are the payment terms? Be sure your agreement identifies the project total and type of payment accepted. Consider including provisions should you need to request any change orders and agreements on withholding payment if the work doesn’t match the agreed upon scope and quality.
In terms of down payment, BBB recommends that you not pay more than 1/3 of the job upfront. If your residence is Bradley, Hamilton or Marion counties within Tennessee, the Tennessee home improvement license limits contractors to collecting no more than 1/3 of the job up front for jobs of $3,000 or more.
Stagger your payment schedule so your final payment isn’t due until the work is complete and you thoroughly inspect it. Do not pay cash. Make sure your check is written to a company, not an individual, or use a credit card if that’s a type of payment accepted by the company.
What is the renovation schedule? Work with your contractor to identify project start and completion dates, any other deadlines for permits, acquiring materials, project inspections as needed and contingency timelines if work falls behind schedule.
What’s included for insurance and liability? Be sure you confirm that a contractor holds general liability insurance and workers compensation insurance if they have other employees working on the job. Ensure your contract outlines how the company will address accidents like injuries or property damage.
What permits and approvals are needed? Permits and approvals may be needed depending on the project. Verify your contractor has permits in place before starting the project. They usually obtain the permits, but you’ll probably pay. Get details on the costs and request that all final inspections be completed by a local building official prior to making your final payment.
What provisions should be made for disputes or project terminations? It’s not fun to think about before you’ve even started, but some projects can go south for a variety of reasons. For example, you don’t want to pay a contractor for poor work.
Consider working on an agreed termination clause for failure to meet scope, schedule, payment, quality or expectations, or specifications on how disputes will be resolved (mediation/arbitration).
Are there any warranties, guarantees or future service agreements? This section of your contract should include information on all warranties and guarantees for the work performed, including warranty periods and what’s covered.
If any other details have been discussed, be sure they’re included in writing in your contract. The contract should be signed by both you and the contractor before any work begins, and you should be provided with a copy of the contract. Be sure to not sign a contract that has any blanks that could be filled in later.
You also want to be sure you obtain receipts for any payments you’ve made. It’s best to obtain a receipt that’s marked “paid in full” when the job is completed and your final payment made.
For more information, you can visit BBB’s Home Improvement HQ site. You can also reach BBB’s team at 423-266-6144 or tngabbb@chattanooga.bbb.org.
Michele Mason is president of the Better Business Bureau in Chattanooga.