Planning on a Renovation? If you are Hiring a Contractor, read these Practical Tips on Protecting your Rights.
You want to get a renovation done right the first time. There are lots of stories about renovations going wrong because the work was not completed on time, over budget, below expectation or just simply not done right.
To help prevent any of these scenarios, you have to protect your rights before you begin your project. Here are a few useful tips:
- Get solid references.
If possible, take a look at other projects done by the contractor. Call the clients and discuss pertinent issues about project timeliness, quality of workmanship, costs etc.
Get estimates from other contractors as well and make valid comparisons on quality of materials, timeframes, overall price warranties etc.
Ensure that the contractor has the appropriate permits and licenses.
- Get an accurate estimate
Having an accurate estimate protects you and helps avoid misunderstandings, which are inevitable in many cases.
The estimate usually has this information:
- A detailed list of materials to be used
- An accurate cost of work – the hourly rate and number of hours estimated
Remember this: even the most experienced renovator cannot always predict hidden challenges in your project. Unpredictable problems can mean additional costs beyond the contract price. So set aside a small portion of your budget as a contingency fund.
- Make a proper renovation contract
Having a written contract gives you control over your renovation project, and is a good way to protect yourself and ensure long-term satisfaction.
Usually, your contractor will prepare a standard draft contract for you to review. Read through this document carefully to ensure it accurately reflects what you want.
Most contracts include at least two kinds of information:
First, it defines what you and the contractor have agreed to.
Second, it addresses what happens if there is an accident or if the contractor fails to conduct business properly.
- Paying for the renovation
Most contractors ask for a down payment. By negotiating the smallest down payment possible, you have some protection if the contractor goes bankrupt.
When it comes to paying for the work, you can make an agreement with your contractor to:
- Pay in installments as the work progresses
- Keep an amount that will only be paid when all of the work has been done
Many homeowners will use a contractor recommended by a friend or relative. It still makes sense to ensure that you are well protected no matter how reliable the contractor may seem to be. Few homeowners have had a trouble free renovation.
We are always ready to discuss any property related issue. So please contact us. Our experienced Real Estate professionals are keen to impart their knowledge and expertise.