A proposal or contract is required to contain information about the Mechanics' Lien Law and the Contractor's State License Board. Do not accept or sign a contract without this information. The written contract should contain detailed information concerning what is to be done, what is not to be done, the methods used to complete the work, and how payment is to be made. Remember, if you pay moneys up front, you hand the advantage to the contractor. The contractor can then schedule your work as he or she sees fit because you risk losing your up front money. Pay on completion and you hold the advantage. Do not accept an oral estimate or a penciled number on the back of a business card. Demand professionalism.
Deposits or down payments are not required unless a major remodel is the subject of discussion. If a contractor asks for a payment before start of work - BEWARE! You should not pay for something you have not received. Ask this question: "Why do you require a deposit?". If a contractor states that this is his or her way of doing business, simply reply that this is not your way of doing business and proceed from that point. If a contractor states that he or she requires money to by material, you should be aware that legitimate contractors have credit with their suppliers and should not require a loan from you to perform the task involved. If you feel the need to buy material up front is justified, ask your contractor "who supplies the material?" When the contractor supplies that information, tell the contractor you will make the check payable to the contractor's supplier. Your canceled check will be evidence that you have paid for material. A contractor who receives his profit up front has less incentive to complete the work. There is always a possibility that a less than honest contractor could skip town with your money. Unfortunately this happens on occasion.
A good contractor will include a list of references and examples of the contractor's work that you can see. It is vital that you contact these references and check on the work. You should not have to ask for references, but do ask if references are not offered.
Always ask a contractor how long their work will be guaranteed. Insist this information be included in writing. Always avoid a contractor who asks to see the competitors' bids, so he or she can "beat all prices". Let all bidders give you their honest estimate and compare prices privately as part of your decision making process. You will rarely come out ahead by showing a contractor other estimates without receiving their estimate first.
Price should never be the only consideration. Remember, you get what you pay for. A quality improvement will last longer than a quick cover-up and is a better investment in the long run.
