Tips For Hiring A Residential Contractor

On April 4, 2011  By Scott Wolfe Jr

We’re happy to hear from Alicia Lagarde as a guest blogger on the Monitor this week. This blog focuses a great deal on construction law from the perspective of the contractor, supplier or subcontractor. It’s a nice change of pace to have Alicia posting on our site to discuss a perspective that is very important and popular, but not frequently discussed here: the perils and challenges of hiring a contractor to perform home repairs or construction.

Alicia Lagarde is a licensed REALTOR® in the State of Louisiana, serving Metropolitan New Orleans, including the Northshore.  As an agent for Keller Williams Realty New Orleans,  Alicia is dedicated to finding the perfect property that best suits your needs and goal. Visit her website at http://www.myNOLAhome.com, and her blog at http://alicialagarderealtor.blogspot.com/.

How to Find a Contractor – Choosing the right contractor will save you time & money.

• Ask friends and trusted associates who have already hired contractors for recommendations

• Check out potential contractors with consumer protection groups, such as the Better Business Bureau of New Orleans: www.neworleans.bbb.org or 504-581-6222. BBB’s video, How to hire a contractor, can be purchased from their online resource library.

• Ask for proof that potential contractors are licensed with the State of Louisiana, and verify with the State Licensing Board at: www.lslbc.louisiana.gov/findcontractor.asp or call (225) 765 2301 to verify licensing.

• Ask potential contractors about their familiarity and experience with energy efficiency, being environmentally responsible, and providing healthy building practices and materials.

Hiring a contractor

Once you have found a licensed contractor who checks out with the BBB or another consumer protection group, ask for:

–A list of references, particularly of projects similar to yours and make sure to call    the references to check them.

–Lists of subcontractors and suppliers and verify that they pay their debts on time.

–Proof of current insurance (should include General Liability, Worker’s Compensation and Builder’s Risk). Make sure to obtain an insurance binder with you listed as the additional insured from the contractor’s insurance company before signing a contract.

–The contract should be modeled after standard American Institute of Architect’s (AIA) construction contract. Contract templates can be purchased at: www.aianeworleans.org

–Before signing the contract, make sure you understand the terms and conditions. If necessary, ask an attorney or a neutral party familiar with the construction process to advise you.

Payment

–Ten percent (10%) of the contract is the most a legitimate contractor will request for a deposit.

–Payment should proceed according to the contract. Pay only for what has been completed.

–Do not pay in cash, write a check and keep written records of all payments.

–Keep written records of paperwork, conversations and activities, including photographs of the completed work.

–Changes to the scope of work should be estimated and approved by the contractor and you in writing before they are begun; make sure to get 2 original copies of the changes in writing and you also want to make sure that both you and the contractor sign-off on these changes.

–Do not make final payment until all work is completed to your satisfaction, all subcontractors and suppliers are paid, and the jobsite is clean and cleared of all debris.