Sea Point Estates Tip of the Month

COMMUNITY TIP OF THE MONTH

Dealing with Subcontractors

All of us as homeowners have to deal with subcontractors to provide necessary repairs or improvements to our homes. It is extremely important to recognize the steps necessary to assure us that we are dealing with reliable people and for us to know what the “rules of the game” are. Here are a few important points that are taken from the California Consumer Affairs Division (http://www.cslb.ca.gov/consumers/tentpsfct.asp.)

	Hire only licensed contractors.
	Check the contractor's license number by calling 1-800-321-CSLB or doing a License Check.
	Get three references, and review past work. Do not hesitate to contact these references and some times it will pay to visit some of their completed job sites to actually see the quality and style of work performed.
	Get at least three bids. This seems like a lot of trouble and many times the first guy seems like a real winner. You only know if he is a winner by getting those additional bids.
	Get a written contract and do not sign anything until you completely understand the terms. The contract does not have to be a big formal thing. Just write it down on a piece of paper. Explain the nature of the job, who is to furnish the materials, what the cost is, and how long the job will take to complete. You both sign the agreement and each gets a copy. You should keep the original.
	For the deposit, pay 10% down or $1,000, whichever is less. So many contactors want a big deposit up front before they will start work. This is a huge danger signal for you. Do not do this. California State Law is very clear on this. The maximum the contractor is due is 10% down or $1,000, whichever is less. Whatever you do, do not give a big deposit.
	Don't let payments get ahead of work. Keep records of payments. In the agreement you prepare, be sure to detail when the contractor is to be paid and for what part of the job. Example: a painting contractor should be paid no more than 50% when he has finished the first coat of paint on the entire job. At the finish of the final coat, he is due 50% less the initial deposit. Spell out these steps on your own contract.
	Don't make final payment until you're satisfied with the job. It is important for you to inspect all aspects of the job. This includes cleanup.
	Don't pay cash. Pay by check or credit card. Actually a credit card is best because you have a lot of rights under your credit card agreement. Even paying by check, you have proof that you have paid for the job.
	Keep a job file of all papers relating to your project. When you have made the last payment, be sure to have the contactor sign a statement that the job has been paid in full. It should be dated and signed with the paid in full statement.

If there are a few items that are unfinished, then you should hold back a certain amount of money to insure the contractor has motivation to return to complete the job.

Know what the guarantees and warranties are. Also, the contractor should have a current workman’s compensation policy with accident coverage. His insurance company can forward you a copy for your files.

For more information visit: http://www.cslb.ca.gov/consumers/.