How to Hire a Contractor to Work on Your Home
An important aspect of hiring a contractor to work on your home is understanding what permits, special requirements, or licenses are required for each job. Once you understand it, you can know if it’s better to hire a licensed contractor or a handyman.
REFERENCES
Be sure to ask for references and references and know the relationship of the parties referring to the contractor. Ask for pictures of installations on similar jobs that have been done for others, and call or visit the people they refer to ask how the job was done, the attitude during the job, being on budget, and finishing on time. Find out if there are any negative reviews online or with the BBB. Make sure he or she is qualified to handle the scope and type of work needed, especially regarding special conditions like lead-based paint, asbestos, mold, etc.
IDENTITY
If the home is occupied, personal items are stored there, or it hasn’t been verified as vacant, be sure to rate your contractor if you don’t know him through online services like mysmartmove.com or others. Obtain a copy of the contractor’s driver’s license and have him sign a W-9 form to include his social security number. If you’re an investor and renewals are common for you, you might want to look into Inman News’ recommended Verify Photo ID app.
CONTRACT
Next, execute an Independent Contractor Agreement with your contractor. Make sure there are no words or requirements that suggest the contractor is an employee of yours.
STAGES
Now is the time to outline and understand the three phases of renewal. Initial Phase One is paid on day 1 of work. Subsequent draws of the Second and Third Phases must be paid weekly, on Monday or Tuesday. In phased construction, the contractor must quote for each item and any over- or incorrect quotes are the responsibility of the contractor, not the owner. Make sure your agreement covers things such as milestones and describes the scope and sequence of work to be completed. The contract must include the description of all work and the condition of Client Satisfaction, such as that all items are completed in a professional manner, the workplace is left clean and tidy each day, and no items are incomplete.
MATERIALS
Ideally, the homeowner should have chosen paint colors, sheens, types for each space, cabinets, granite, and whatever materials will be used in the project at source. Have your independent contractor pay for those materials and have that vendor deliver the materials to the job site, then reimburse the contractor immediately; this strategy avoids any appearance of establishing an employee/employer relationship. Do not pay for routine tools and supplies that the contractor uses in his daily work, such as brushes, ladders, tarps, etc.
UPDATES
If you are not the owner occupant on the job site, ask the contractor to provide daily images and video of each phase when it is complete before scheduling a personal inspection and before payment is released for that phase. An investor can use this in the future or in marketing.
COMPLETE
In exchange for final payment, the homeowner must sign that they are satisfied with the work and the independent contractor must sign to release all liens in exchange for final payment.
