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| Finding the Right Contractor The following information is from a Presentation and Discussion by Stephen M. Maish, Attorney Maish & Mysliwy, Attorneys at Law May 10, 2007 |
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| Things to Do: 1. Get all estimates in writing. The estimate must include a specific price, a description of the work, the payment terms, and a schedule for the performance of the work. 2. Get more than one estimate, especially for larger projects. If a contractor knows that you are getting other estimates, the contractor will generally give you the best price. By getting another estimate, you may also learn about a different option or alternative that the first contractor did not consider. 3. D not sign anything until you fully understand all of the terms. Ask questions. The best way to avoid misunderstandings and problems is to obtain information and answers to questions before a contract is signed. 4. Be careful about paying money before the work is performed. Any down payment should be small. If you pay a large down payment, you risk losing more money if the contractor does not do the work. 5. Obtain information about the contractor and references. You have the right to ask questions and to obtain information. A good contractor is always willing to provide references. 6. Check out the references given by contractors. You should contact at least some of the references that a contractor provides. Good references are usually your best way of making sure that you are dealing with a good contractor. 7. Make sure that the contractor is licensed in the location where the work is to be performed. Call the local building department to make sure that the contractor is licensed in the location where the work is to be performed for the type of work that the contractor is proposing to do. 8. Contact the Better Business Bureau to determine if there are any complaints against the contractor. 9. Make sure the contractor pays its bills. For contracts in larger amounts, you should request a contractor's sworn statement and a final waiver of lien for all of the major subcontractors and suppliers. If a contractor does not pay its bills, the contractor's subcontractors and suppliers may be able to file a mechanic's lien against your property. Things to Avoid: 1. Don't be pressured into signing anything. A legitimate contractor is willing to answer questions and will not pressure you into signing a contract until you fully understand the proposed work and the terms of the contract. 2. Stay away from a contractor that fails to answer your questions or to timely respond to your requests for information. If a contractor does not answer your questions before a contract is signed, it is likely that the contractor will not answer your questions after the contract is signed. If a contractor does not timely respond to your requests for information, then it is likely that the contractor will not timely perform the work. General Information/Helpful Hints 1. "Insured and bonded" does not mean that a contractor is good or reliable. As a condition of obtaining a contractor's license, a contractor must post a county-wide license bond and provide proof of basic insurance. Such bonds and insurance do not generally provide the customer with any protection if the contractor fails to perform the work or pay its bills. 2. A lot of advertising by a contractor does not mean that a contractor is good or reliable. Most of the better contractors do not need to advertise because their business is built on their reputation, repeat customers, and word-of-mouth references. 3. Good, reliable references are usually the best indicator that a contractor will perform quality work. If a contractor has done quality work on a timely basis in the past, it is likely that the contractor will do quality work on a timely basis for you. 4. The lowest price is not always the best price. A dishonest contractor can lower its price by installing smaller or inferior equipment, which may not meet the needs of the customer. A furnace that is sized too small will be less expensive, but it will not adequately heat your house during the coldest winter temperatures. 5. Small claims court is usually the best way to resolve disputes with a contractor. In Indiana, small claims courts can resolve disputes involving amounts of $6,000 or less. Unless the amounts in dispute are extremely large, it is usually not cost-effective to retain an attorney to represent you in court. It may, however, be cost-effective to pay an attorney to provide advice and information concerning such disputes. |
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