10 Things Your Contractor Doesn’t Want You to Know

Know the Laws, Know Your Rights

Contractors are typically regulated by city, county or state laws, or all of the above. Many are required to have a license for home repairs and additions over a certain dollar amount. They are also sometimes required to have a bond on file with the state or municipality, as well as proof of workman’s compensation insurance, to protect the homeowner from liability.

Venus Stromburg, public affairs representative for California’s Contractors State License Board, says, “It is also illegal for contractors to ask for more than 10% of the contract price or $1,000, whichever is less, as a down payment. If California consumers know this going into a project, and any other state's residents about the particulars of their contracting laws, they can protect themselves against those who might not be up front with them.”

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Who They Really Are

David Schneider, owner of Schneider Kennedy Design in Wildwood, Missouri, says it’s best to ask your contractor for a lot of detail and proof of licensure. Schneider says to ask contractors about their experience, how many times they’ve changed their business identity, the experience of their staff and how many projects they have going simultaneously. It is also a good idea to run a basic check on the Internet check for complaint reports on the state’s Attorney General’s office and the local Better Business Bureau.

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The Lowest Bid is not Always the Best Value

“Don’t let the bidders define the work,” advises Robert S. Saxon, architect with SaxonCapers Architects P.C., in Wyndmoor, Pa., Saxon says if it is a large project, it’s best to hire an architect or engineer to draw up a description of the work to be done to ensure the contractors are giving a price for the same amount of work and the standards to be met. “Always get at least three bids,” Saxon adds.

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If the Bid Sounds Ridiculous, it Probably Is

Lisa Schaefer and her husband asked an electrician for a quote to install recessed lighting in their Vienna, Va. home office and kitchen. “He was going to rip out our dry wall, hire a subcontractor to replace it and install a new fuse,” says Schaefer. “It was going to cost $5,000.”

The Schaefers knew enough about lighting to know that seven 60-watt bulbs shouldn’t require a new fuse. They did their homework, ensuring that a DIY project would be safe, spent $75 and a weekend to do the job.

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Don’t Get Drained by Plumbers

“Plumbers usually will get a fixture from us or another online retailer and then charge the customer a very inflated price for the item,” says Isaac Perstein, marketing representative for qualitybath.com. “They end up getting paid for the work and make a couple of extra dollars on the fixtures themselves.”

Perstein advises consumers to get a quote, asking for a detailed list of the charges. “Once you know how much he’s charging for the fixtures, you can go online and get them yourself and let him know you have them and will be only paying for the labor portion of the quote,” says Perstein. If consumers don’t do this, they will typically be charged more labor to compensate for the price of the fixtures. Perstein says consumers can save $100 for a faucet and sink and $400 for a tub by getting the fixtures themselves.

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Keep Track of Materials

Linda Carlson, a Seattle, Wa. homeowner and self-proclaimed “survivor of a major remodel,” says that her contractor was counting on change orders to increase his profit.

“He got mad when we insisted on returning unneeded material, such as the majority of a roll of landscape cloth. He had planned for us to pay for it, and then he would "take it off our hands" and onto his next job, or his own home,” says Carlson, adding that the contractor was “livid” when they also insisted on using some existing materials from their old home. “He made a point of saying he should charge us for that because he was doing work with existing materials and not getting his markup.”

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Write Your Own Contract

Jody Costello, pre-renovation coach and consumer advocate for Contractorsfromhell.com, says many homeowners don’t know that they don’t have to accept the contracts the contractors offer. Costello says their typical contracts are biased toward their own interests.

“A homeowner should at the very least add their own addendum, signed and initialed by both parties, to the contract or better yet have an attorney review and revise with contract clauses that protect the homeowner,” says Costello. The contract should contain a “right to fire” clause, in case the work is not to your satisfaction, as well as possibly even the right to have an inspector oversee the work.

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Know the Real Costs

Abe Baakrime, owner of Home Repairs by Abe in Meriden, Conn. And author of “Home Repairs by Abe: The Basic Do it Yourself Home Guide,” says one of the most common repairs to a home is the deck or wooden porches.

“Take measurements and go to your nearest home improvement center to get a true cost per board. Often the materials cost is many times higher,” says Baakrime.

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Read Your User’s Manual

Baakrime says that often contractors will advise you that an air conditioning unit, heating unit, boiler or hot water tank needs a complete replacement, when it could be something as simple as air filters, couplers wearing out or the unit may need a line flushing. If you know the basics from your owner’s manual, you may save yourself a costly repair or replacement on these items.

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Beware By the Hour

It may seem obvious, but some contractors would rather charge by the hour than by the job, and that could mean more money out of your pocket. “Anyone who is not entirely ethical could just take forever and a day to finish a job,” says Baakrime. Make sure the total bid is included in the contract.

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