Red Flags of Remodeling

Here are two RED Flags that could pop up during the remodeling of your home.

Contractor Not Offering a Written Bid

It is common practices amongst sub-contractors to work on a verbal bid for the work.  This practice is OK, if the general contractor or homeowner has used the sub-contractor before.  However, even then there is a 90% chance of there being a misunderstanding of the content of the verbally agreed bid.

I strongly recommend that all contractors, sub-contractors and anyone else who is doing work on your house be instructed to put their bid or proposal in writing.

Here is what should be in each proposal:

  1. Date the work can start and end
  2. Description in detail of the work to be done.  If the work is to be done in phases, the phases should be stated and what will be done in each stage.
  3. Who will be doing the work…will it be the person who is presenting the bid or another person.
  4. Total price for the work and the Terms of payment.
  5. What the homeowner is to supply or not.
  6. Guarantees
  7. How long the Proposal is good for.
  8. Signature and dates

Sub-Contractor Not Being Paid

Something is going horribly wrong with your project if a Sub-contractor (someone hired by the general contractor) approaches the homeowner directly for payment.  This could be due to the GC not willing to pay the SUB for any reason.  As the homeowner, you need to be aware that in most states a Sub-contractor can put a lean on the title of the home for the amount of money he was owned for the work he did on that home.

Make sure you have placed in your agreement with the general contractor that he is responsible for all payments to subs and receipts of payment in full from the subs should be part of the documents provided at the completion of the remodeling project.

I suggest you consult your attorney on the Mechanic Lien Laws for your area so you can place effective and enforceable wording into the contract you have with your general contractor.

Hiring a remodeling consultant can help you better understand what you are going to be dealing with during each step of your remodeling project. Why Not Remodel offers a Free 30 minute review of your remodeling concept and is available to serve as your agent to oversee the entire remodeling project. Contact me for more details: scot.duke@whynotremodel.com