A SUMMARY OF THE MINIMUM THINGS A PROPERTY OWNER SHOULD DO WHEN HIRING A CONTRACTOR FOR ANY CONSTRUCTION
(assuming of course avoiding having to hire an expensive attorney later on is a preferred goal).
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When Thinking About Renovation of Construction For Your Home
Tis the Season. There’s something about Spring. As we crawl out of the cave from our long Winter’s hibernation, perhaps it’s seeing the sun once again that triggers an apparent desire to also hear the sound of carpentry, to smell fresh paint, to wiggle our toes in newly laid carpet and generally make the neighbors envious. It’s time to build something.
As our caveman ancestors often discovered the hard way though, there are also pitfalls and predators out there waiting to trip up the unwary. To avoid hazards to your pocket book and preserve your peace of mind, here are a few simple tips which can help somewhat in keeping your project proceeding smoothly and out of court. Try to use as many of the following safeguards as possible.
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Seek Competitive Bids
Get several bids. But, don't necessarily take the absolute lowest without further investigation, particularly if it is way out of line with the others or if the contractor does not seem to own much more than a used truck and some tools. If something sounds too good to be true, that’s usually the case.
3
Do Background Checks
Regardless of the glowing recommendation from your reprobate uncle or your drinking buddies, run a thorough background check on all the contractors being considered to do the work. The overwhelming majority of contractors are hard working and scrupulously honest, but it never hurts to get others’ opinions on the subject. Check at least the Oregon Construction Contractors Board and Better Business Bureau websites to see if the contractors selected are licensed and whether there have been any complaints. Try to find prior customers to see if they are satisfied. Perhaps even check at the County Courthouse to see if there are any lawsuits in the last few years with any of the proposed contractors named as plaintiff or defendant. The court has a public access computer there that allows a name search. A history of disputes, especially unresolved ones, suggests you should keep looking.
4
Consider Requiring Performance and Completion Bonds
Even though it might cost a little extra, consider selecting contractors who are able to obtain performance and completion bonds to insure the work will be done as promised. Perhaps insist on "builder's risk" insurance coverage being provided for the particular job. Speaking of insurance, if the contractor will have more laborers than himself on the site, make sure as well that he has workmen's compensation coverage. And, don’t just demand it in the contract language. You can ask to see copies of all the actual bonds and policies themselves. At least confirm coverage exists before the work is allowed to start by checking the government websites which have such information.
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Spell Out Both What Is to Be Done and What Isn't
Get a written contract, preferably using a standardized or even preprinted form from a "neutral" third party such those sold by the American Institute of Architects and available in most office supply stores. It doesn’t have to be a long one. There are relatively simple small project forms available.
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