Hiring the Right Contractor

by AN EAST HILL CONTRACTOR

So you’re wanting to do some home renovations—maybe adding a mother-in-law suite in the backyard or putting on a new roof. Your home is your biggest investment. If you’re investing a lot of money into your property, you want to be sure that the work is being done well. So how do you know that your contractor is right for the job?

No matter your desired project, always use a licensed and insured contractor. Check with the regulatory agencies (see below) to be sure. These agencies can tell you if the contractor is actively licensed. If they are, they are required to have the proper insurance to maintain that license. You can then check with both the State and with the Competency Board to see if there are any complaints against the contractor to be sure the one you are talking with is a good fit for your needs.

ESCAMBIA COUNTY COMPETENCY BOARD: (850) 595-3572 | contractorlicense@myescambia.com

CITY OF PENSACOLA INSPECTIONS: (850) 436-5600 | cityinspections@cityofpensacola.com

DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION: (850) 487-1395 | www.myfloridalicense.com

The Better Business Bureau (BBB) is another great place to do some research. See if your contractor is a member of the BBB. To be a member and to have a Triple “A” rating takes effort by anyone applying for and achieving this rating. This is another layer of professionalism by your contractor to be rated with the BBB.

One you’ve done these background checks, it’s time to weigh in cost. Receiving at least three quotes is highly recommended, but also keep in mind that pricing isn’t black and white. Contractors may break out costs differently, so it can be difficult to compare apples. Don’t hesitate to ask questions or request further breakdowns of costs to better understand where your money is going. Also while you might not care to go with the most expensive option, pricing often reflects quality. If the contractor’s bid is a little higher or not readily available to begin immediately, it probably means they do a good job and are in higher demand. That’s ok. It’s better to wait and have it done right.

Also make sure you like the humans behind the business. You’ll be interacting with them frequently and you should feel good about the person leading your job. continued

Once you’ve chosen your contractor, establish a good line of communication so you can always reach someone by phone if you have questions or concerns. Some of the things you need to be sure are covered in the contract are:

✓ The cost of the work to be done on your project.

✓ A good idea as to when they will be able to start and an estimated (realistic) completion date.

✓ A copy of the estimate for your project as an attachment to the contract is a good way to move forward. This way you know what they are going to do and how the cost is spread over the different aspects of your project.

✓ Any changes to the contract or project scope should be done in writing (with any price changes) before the contractor is “ok’d” to proceed.

This leads us to the next most important part of dealing with a contractor—payment. It is never a good idea to pay ahead of any work being done. If your contractor asks for a down payment and hasn’t performed any work, then this may be a sign of not having the financial where-with-all to handle your job. Red flag! A lot of time this is robbing Peter to pay Paul, if you know what we mean. A contractor should not ask for any money up front. His first draw should be based on completed work on your project. If the estimate for the work is made a part of the contract (as recommended above) then you will know what they have done and therefore what money is actually owed to the contractor at each milestone.

Now, sometimes a payment is needed to secure an order for what we call “long lead” items. These are items that need to be onsite for the contractor to be able to move forward with your job. Things like windows and doors, or electrical and HVAC gear, sometimes need to be ordered and paid for earlier than needed because they take longer to get in. If a payment is needed for long-lead items, I would recommend a joint check to your contractor and his supplier that is securing the materials. That way you are assured the money is being used for your job (not someone else’s). At minimum, be sure to get a receipt to see that the material was paid.

Let’s talk about permits. Be sure your contractor pulls a permit for the work you are needing to be done on your project. If they say they don’t need a permit then this should raise a red flag in most cases. To be sure if your job needs a permit, simply call the City or County and ask.

Often times a permit will require drawings to be submitted. If your contractor can do the drawings, this will save you money. If drawings are needed and your contractor can not do them then reach out to a professional, residential designer or licensed architect.

Once the permit is obtained, it must be visibly posted onsite. When a permit is “pulled”, the City and County will both require a Notice of Commencement (NOC) to be filed and recorded at the Clerk of the Court before any inspections can be made. This NOC will require you to sign and have it notarized before it can be recorded. Often times after a NOC is filed, subcontractors and suppliers working with your contractor will file a “Notice of Lien” with the courts.

You may receive a copy of this notice in the mail, but not to worry. This is NOT a lien, it is only a notice that the subcontractor or supplier who filed it will be performing work or supplying material to your project. When you get these, it is imperative of you to be sure you also receive a satisfaction of the “Notice of Lien” that this subconsultant or supplier has been paid in full. If you don’t, it could mean the contractor hasn’t paid them, in which case you could be responsible to pay them yourself. This is just another place to watch out for and hold your contractor accountable.

If you are contemplating having work done on your biggest involvement (your home), we hope you can use this information as a guide. While there are always a few “bad eggs” in the construction community, I believe you’ll find many more quality contractors to choose from for your next East Hill renovation by following these key tips.