When hiring a contractor, you are trusting that person with your most precious investment: your home. Therefore, it is essential to find someone who will get the job done right and within budget. While there are many reputable contractors available to select from, there are some who will take advantage of homeowners who simply don’t know how to keep themselves protected. Fortunately, you can avoid being one of these homeowners if you avoid making these 6 costly mistakes.
Mistake #1: Failure to Get it in Writing
The number one mistake homeowners make when hiring contractors is failure to get everything in writing. This includes information regarding the budget, project guidelines, payment schedule and an estimated start and finish time for the project.
Mistake #2: Paying for the Full Project Upfront
If the contractor asks you to pay for the entire project upfront, this should serve as a red flag. While you should expect to make a small deposit before the project begins, the rest of the payment should be made in payments as the project is completed.
Mistake #3: Paying in Cash
A contractor who insists on payment in cash is probably not someone you should hire for the job. Not only should a reputable business should be able to accept other forms of payment, but it is in your best interest to pay with a credit card, a debit card, a check or money order. This way, you have proof of payment.
Mistake #4: Failure to Obtain a Waiver of Lien
Contractors and subcontractors have the right to file a lien against your property if you fail to make payments as agreed upon. This can cause you problems if you pay the contractor and he fails to pay your subcontractors, as they can then turnaround and file a lien on your property and demand payment. By obtaining a waiver of lien from your contractor and each subcontractor, you avoid running into this problem.
Mistake #5: Failure to Check on Workmen’s Compensation Coverage
Unless your contractor has workmen’s compensation coverage, you can be held responsible for any workers who are injured while completing your project. Therefore, it is important to verify that the contractor has workmen’s comp coverage in place.
Mistake #6: Failure to Verify Liability Insurance Coverage
Just as you can be held financially responsible for injuries that occur while working on your project, you will also be responsible for damage to your property unless the contractor has liability insurance coverage. While you can certainly sue the contractor for damages if he doesn’t have coverage, this can be a lengthy and costly process that doesn’t guarantee a reimbursement of funds in the end. Therefore, you should be sure to verify coverage before hiring a contractor.
When you hire a contractor from name of site, you can take comfort in knowing that all of our contractors have been pre-screened and have a reputation of excellence in their community. Get the job done right the first time when you find a contractor at name of site!
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