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Planning Your Project
In order to minimize the chances that you will have a problem with your project orcontractor, you should understand that planning is the first step in the process. Before you
do anything else, ask the question:
What do I want done?
A silly question? Not at all. Carefully plan exactly what you want done,
what you want it to look like when finished, and how much you have to spend.
Thoughtful, carefully prepared plans will be helpful in getting accurate bids
from contractors. You may wish to seek the advice of an architect or draftsperson.
Remember that, in general, if something you want is not shown on the plans, you
won’t get it.
When planning your project, be sure to consider energy efficiency. An energy-efficient home or building costs less to heat or cool, is quieter and
more comfortable, and will sell faster and at a higher price. California law
requires new and remodeled buildings to meet or exceed certain energy efficiency
standards. Aiming for optimal energy efficiency can have significant financial benefits,
such as:
Rebates or low-interest loans from utility companies;
Rebates from the manufacturers of energy-efficient products and appliances;
Energy-efficient mortgages and other advantageous financing incentives from lending
institutions.
Additional information on California’s energy efficiency standards is available
from the Energy Standards Hotline for the California Energy Commission, (800)
772-3300 or (916) 654-5106 in the Sacramento area.
What Kind Of Contractor Do You Need?
There are 43 different types of contractor licenses, including general and
specialty contractors. General building contractors usually oversee projects
and coordinate the specific subcontractors for a job. Specialty or subcontractors
usually are hired to perform a single job. For example, if you want only
roofing or plumbing work, you may want to hire a contractor licensed in
that particular specialty.
A general building contractor may also contract for specialty work, but must
hold a specialty license for that work or actually have a specialty contractor
do the work. If the job requires more than two types of work on a building,
then it is appropriate for a licensed general building contractor to contract
for and oversee the entire project. For example, if your kitchen remodeling
will involve the performance of plumbing, electrical and carpentry work
under one contract, a licensed general building contractor should be hired.
Under those circumstances, a general building contractor may perform all of
the work on a building, or have specialty subcontractors do all or part
of the scope of work for which the specialists are licensed.
Check the Contractor’s License
Is the contractor properly licensed? In California, anyone who contracts to
perform work that is valued at $500 or more for materials and labor must
hold a current, valid license from the Contractors State License Board
in the specialty for which he or she is contracting.
Unlicensed contractors pose a risk to your financial security because they
expose you to significant financial harm in the event of injury or property
damage. Few unlicensed contractors have bonding or workers’ compensation
insurance.
If you contract with someone who does not have a license, the Contractors
Board may not be able to assist you with a resolution to a complaint,
and a remedy against an unlicensed contractor may be available only in
civil court. This is one more good reason to work only with licensed contractors!
Another consideration is that unlicensed contractors may not have the expertise and qualifications to do the job right the first time. You could end up having to hire a licensed, reputable contractor to correct the work—and paying for the job twice.
Ask to see the contractor’s pocket license and some additional form
of identification. The name on the pocket license should be the same as
the name of the contractor or business name the contractor is working
under.
It is illegal for one contractor to use another contractor’s license,
just as it is illegal for someone to use another person’s driver’s
license.
Check the Contractor’s References
One of the best ways to select a licensed contractor is to seek out personal
recommendations from friends or relatives who recently had similar projects
completed and were satisfied with the job.
Ask the contractor for local references, and call them to see if they were
satisfied with the contractor’s work. Skilled contractors will be
proud to take credit for their work. If possible, go out and look at finished
projects. Some consumers even try to find jobs in progress to see how the contractor
works and to speak with the homeowner about work habits, inconveniences, and the sensitivity of the contractor to the living needs of the homeowner. Remember, the person you hire to work in your home will be in and around your home until the job is completed.
When speaking to the contractor’s customers, ask such questions as:
Did the contractor keep to the schedule and the contract terms?
Were you pleased with the work and the way it was done?
Did the contractor listen to you when you had a problem, and seem concerned about resolving it?
Did the contractor willingly make any necessary corrections?
In addition to talking with customer references, obtain references from material
suppliers, subcontractors, and financial institutions, if possible, to
determine whether the contractor is financially responsible.
You may also wish to check the contractor out with your local building department,
trade association or union, local consumer protection agency, consumer
fraud unit in your city or district attorney’s office, and the Better
Business Bureau. Call these organizations to see if they have information
about the contractor you are considering. Ask how long the company has
been in business, and find out if there are any complaints about the firm or other relevant file information.
Ask the contractor for the address of his or her business location and business
telephone number, and verify them. A contractor who operates a business
out of the back of a pickup truck with a cellular telephone may be difficult
to find to complete a job or fix something that has gone wrong after the
last bill is paid.
If you want an arbitration clause in your contract, make sure the contractor
you are considering will agree to arbitrate any disputes that arise out
of the contract.
Don’t be fooled or pressured by a smooth-talking salesperson. Take the
time and effort to make sure that the person or business doing your home
improvement is going to perform in a professional manner.
Bonds
Some bonds are designed to protect you against substandard work that does not comply with local building codes.
Bonds do not assure the financial or professional integrity or competency
of a contractor.
Institutional lenders such as savings and loans, insurance companies or commercial banks generally require contractors to
secure bonds for large jobs.
Bonds may be classified as:
Contractor’s License Bonds —
All contractors are required to have a contractor’s license
bond of $10,000. This bond is not a guarantee of performance or competence, or of the contractor’s financial responsibility. In fact, this bond is often not enough to cover the multiple complaints that could be made against it.
Contract Bonds —
A contract bond guarantees both job completion and payment of all labor
and materials. In general, the bonding company will not have to pay more than the face amount of the bond.
Bonding requirements may keep a new contractor or a contractor with a poor
track record from bidding on desired jobs. Bonding companies will not
take a risk without verifying the technical and resource capabilities
of the contractor. For a contracting business to qualify for bonding,
it must practice sound business techniques.
Where can I find out about PG&E Rebates?
Visit PG&E's website at www.pge.com and click on "Rebates".
This information was taken from the CSLB Website.
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