When it comes to your most valuable asset, your home, there is no doubt that you want to do everything you can to protect it. From making sure to keep up on maintenance, to insuring it properly for any incidentals. But what about protecting it when deciding to have work done to it? Why is it that some people trust some “Chuck in a Truck” or “fly-by-night” contractor to take care of things in their home solely because of the cheap labor?
It’s a risky choice and we’re not quite sure the gain from a cheap ticket price makes up for the risk involved.
When considering that kitchen remodel, or doing some updating to the bathroom, bedrooms, or any other part of a home renovation project, there is no good reason to risk your home, your family’s safety and shelter!
We know that in Oregon, there is a plethora of contractors to choose from but one thing you should keep in mind, is that we are NOT all the same! While there are those of us who take great pride in our workmanship, our reputation, and are in it for the long run, there are also those who woke up one day and decided to put on magnet on their truck and call themselves contractors. They are willing to do whatever it takes to make the easy dollars and yes, they will do so even at the expense of you and your family’s safety!
So how can you protect yourself from falling for the wanna-be contractors?
The short answer is, you have to do a bit of homework before you trust someone to work in your home.
That research should include asking these 8 questions so that you can confidently decide who you are going to allow to be around your family and in and out of your home for weeks or even months at a time depending on the project scope.
The first and most important question you have to ask (and verify!) is…
#1: Are They Licensed?
So for those remodeling projects, you have to make sure that the contractor you are considering not only has a CCB number, but that it’s active and that they are not on the CCB’s Buyer Beware list. This list shows many “contractors” who have either been in trouble for working without licensing or proper insurance coverage for their workers. Reputable contractors will not allow themselves to fall into those categories because they will always keep current on their licensing requirements and will follow through with their commitments to each client.
Working with a licensed contractor protects you in multiple ways. For example, if a dispute arises between you and the contractor, the CCB can help mediate between the two and the contractor can be held accountable if something goes wrong.
You should also not rely solely on their word or on the fact that they will show you a card with a CCB number on it. It’s not unheard of that some scammers pretend to be a licensed contractor and use another business’ CCB number without their knowledge. Don’t be afraid to ask for their license or look them up by their name or business name by visiting the Oregon Construction Contractors Board’s website by going to www.search.ccb.state.or.us/search/
If after checking, you can’t find them or their business, or the “contractor” themself tells you they are not licensed, you should take that as a HUGE red flag and give a hard PASS. They are not only telling you they are willing to skip steps, but also that they don’t have the next key part of choosing the right contractor…
#2: Are They Properly Insured?
Keeping an active coverage for General Liability and bond is a absolute must when working with a reputable remodeling contractor. Part of the CCB License application requires both of these coverages, but worker’s compensation is one where if the licensee indicates they will not hire employees, they don’t have to show proof of coverage. This is where you’ll want to keep an eye on that CCB license search to verify if there is worker’s compensation listed and if their status matches the way they present themselves.
For a Residential General Contractor, the CCB requires a bond of $20,000 and a minimum liability coverage of $500,000 per occurrence. Both of these must be maintained without lapse in coverage.
As a homeowner, you benefit from these coverages. Should any issues arise with breach of contract or improper work, you can file a complaint with the CCB and if that leads to an order for a contractor to pay money to the complainant, the contractor must pay as ordered. If he doesn’t the bond enters in as a promise by a bonding company to pay all or a portion of a CCB final order when a contractor fails to pay said order.
The General Liability insurance reimburses a third party (such as a consumer) for property damage or personal injury loss caused by the contractor. This coverage does not however, cover any reimbursement for poor work or construction defects but it may cover damage caused by the faulty work or construction defects.
With Worker’s Compensation (WC), there is medical treatment, lost wages, disability, and re-employment help protection if needed for employees who get hurt on the job. If the contractor you hire has employees on the job but doesn’t have WC coverage, that could open you up for the risk of paying for the medical bills if the workers were to get hurt in your home.
Reputable and responsible contractors will have all of their coverages current to protect the homeowners, their employees, and themselves and they will also make sure their subcontractors have their proper coverages too.
Make sure that everyone coming into your home has the necessary insurance to get the job done.
#3: Is A Formal Contract Offered?
You should never accept to work with someone who is not willing put things in writing. A contract should state the contractor’s contact and license information as well as the property owner’s information. It should also clearly state the scope of work, the total amount for the project, a payment schedule (deposit and progress payments throughout the job), estimated start and completion dates, any warranty information, and signatures from both parties. Although contracts can be lengthy, always read throughout it carefully so that you are fully aware of any clauses or important information for you to keep in mind. For example, the CCB requires contracts be written for any job $2,000 or more. Contracts should also include the Consumer Protections you have and an acknowledgement of having received the notices.
If there is anything you don’t understand, you should bring it up and discuss it with your contractor before signing.
Also keep in mind that any changes to the scope should be documented and signed for with change orders so that you have everything in writing should any issues arise.
#4: Will permits be pulled?
Proper permitting work is an absolute must for any altering work. This is something that unlicensed “contractors” would skip over. That’s another red flag to be aware of and another sign that you should walk away and find someone else.
The State of Oregon requires permits for any structural modifications, electrical, plumbing, or mechanical changes or installations, as well as all new construction or any septic system installation or repair.
General contractors will pull any necessary permits where needed. You should check for this to be included in the contract.
When a permit is pulled, there will be a period of waiting for permits to be approved. Once approved, the work can be done and inspections are scheduled where the city or county inspectors will verify things were done to code.
While an unlicensed “contractor” can offer to do the work for cheap because of all of the corners they cut including failing to pull permits, doing work without permits will cost more in the long run. That’s not to mention endanger you and your family. Furthermore, if you were ever trying to sell your house, you’d have to prove that the changes were done to code. Keep in mind that having to get unpermitted work permitted after the fact also involves having to open up walls to verify thigs were done correctly. Whatever you thought you saved will be gone plus some to get things done properly so avoid that headache and make sure whatever needs permits has them!
#5: What Kind Of Preparation Steps Are Followed To Protect Your Home?
You’ll want to know how they plan to protect the areas of the home that are not being worked on. Will they also take care of your personal belongings so they don’t get damaged during the work? How will they pick up after themselves during and after? Your contractor should explain what they plan to do to ensure your whole home and personal belongings are cared for.
#6: Can You Get References From Previous Clients?
You’ll want to check out online reviews but also ask if there are any past clients willing to communicate with you to get a first hand account of what it’s like to work with them. Although phone calls are great, there are some people who prefer to communicate via email. However, as long as you can get some references, you’ll be able to get a better idea of the experience others have had. Any great contractor would be more than willing to provide some references if you ask for them.
Bottom line, you should always do your research and verify that you are in fact dealing with an ethical contractor who will take care of you. An awesome contractor will always be more concerned with giving you what you need and want for your home and understanding your vision for the project than with rushing you to sign a contract full of blank or undefined spaces without clear scopes or expectations.
Asking the above questions will help you eliminate the “bad apple” contractors from your list.
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