How to Prevent the Home Remodeling Nightmare

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1 How to Prevent

2 One thing is certain when starting a home remodeling project: you don t want to get burned in the process! So how do you avoid becoming a victim? If you follow some basic guidelines and remain actively involved throughout your project, you should be able to avoid the all-too-common and dreaded nightmare.

3 Like other industries, you ll find both good and bad players. But, remodeling seems to have an especially bad rep. Everyone has either had a bad remodeling experience, read about one or know someone who s been through a nightmare project. With horrible stories cropping up all the time, you d think homeowners would take all the necessary precautions to never get in trouble with their projects. But, that s easier said than done. Protecting yourself from a sub-par contractor requires a lot of knowledge and work.

4 Taking Steps to Shape the Outcome According to the Consumer Federation of America, the National Association of Consumer Agency Administrators and North American Consumer Protection Investigators, home improvement is at the top of the list relative to fraud and customer dissatisfaction. No question the bulk of the blame falls squarely on the shoulders of the industry. But, homeowners need to share some of the responsibility too. After all, it s up to them who they hire to do the work. Without proper education and due diligence, you leave yourself open to big problems.

5 Before we offer suggested guidelines, let s talk about what not to do: Don t make your choice after verifying licenses. Licensing is important; however it s a minimum requirement a starting point for weeding out contractors. With this information, you still don t have a clue about the remodeling company s business ethics and competencies relative to your project.

6 Don t sign a contract because you have a good feeling about the contractor. Getting a good sense about a person or company is important, but it can t be the sole criteria for your selection. Remember, everyone needs to earn your trust. Especially in the home remodeling industry, you should never easily give away your trust. Also, don t put too much stock in ads and subjective marketing materials. The best gauge of a contractor s capabilities will always be its past work. So, make sure you focus on the materials they provide that involve client case studies, educational topics and other objective subject matter.

7 Don t skimp on the background research. Every state, county, municipality and/ or homeowners association has different regulations. Although a good contractor will help make sure your project complies with all regulations, compliance is ultimately your responsibility. You also have to be well versed in your rights, as well as the rights of the contractor. Then you ll understand what needs to be highlighted in the contract. Don t rely on oral agreements. When push comes to shove, only what s in writing will matter. So don t assume what your contractor tells you will happen. If something isn t outlined in your contract, plan on paying extra for it.

8 Extraneous work will be completed through the change order process. And, nothing else will drive up your project cost than change orders. The better you understand change orders, the more likely you ll keep a handle on your budget. Don t, and that means never ever, give any contractor a large amount of money upfront. Seems like common sense, but this one rule gets overlooked a lot. Again, some of us tend to trust too much. It s true contractors usually need a percentage of the estimated project cost paid before work begins. But, that amount usually falls between 20% and 35%. You want your contract to reflect a payment schedule based on performance.

9 Guidelines for Project Success Now, here s what every homeowner should do during their remodeling project. If you follow these guidelines, you greatly increase the odds your project will be a huge success: Research all potential contractors Selecting a contractor is by far the biggest decision you ll make on your home remodeling project. The qualifications of the company doing the work will make or break your project. Therefore, you must commit yourself to performing in-depth research and background checks.

10 To avoid getting into hot water with your project, at a minimum make sure you research these items: Use a search engine to find out what information may be online about them. Search parameters should include terms such as complaints and lawsuits. Visit judicial websites to search for case histories. If the contractor has been to court on any issues or has mechanics liens filed against them, you ll likely find this information in public records, many of which are accessible online. Consider using feedback sites like Angie s List. Reading reviews about homeowners actual experiences can provide immeasurable value. Always follow-up any information you uncover with further research to verify what was reported.

11 Thoroughly review the remodeling company s website. Is it professional? What affiliations do they have? Has their work been recognized by outside sources? Make sure you get as much information as possible from people you know. Personal experience with contractors and the remodeling process will prove very valuable. Verify the contractor s license through the Registrar of Contractors. You can also find complaints filed by previous clients. Drop in at the remodeling company s local office. How do they treat you? Do you get the impression the company is professional and competent?

12 Notice how you re being solicited for work by a contractor. Does the solicitation seem unprofessional or desperate? Keep in mind; the best contractors get most of their work from referrals. So, the bulk of their marketing will be based on telling client and project success stories, as well as creating educational value for prospective clients. Skip the interview process if you uncover anything of concern during your research. You don t need to waste your time meeting with a contractor if several red flags popped up.

13 Develop a strong relationship with your contractor If you grasp the rights of both parties yours and the contractor s chances are you ll avoid issues. You ll create respect and help ensure a mutuallybeneficial relationship. In addition, you want to fully understand the different types of remodeling contractors available to do your work. A remodeling company specializes in remodeling only and actually has personnel on staff to do some of the work. Other portions of the project, typically the trade work, may be delegated to subcontractors with whom the remodeling company has formed solid relationships. This proven team will perform consistently and reliably.

14 In certain cases, getting a general contractor to assume full responsibility for fixing subcontractor problems may pose challenging. If your contractor doesn t hold the subs accountable, you ll be left holding the bag for extra costs. Find out about the remodeling contractor s current workload Like any other business, contractors need to make money to survive. And, the remodeling industry experiences boom and bust times typically related to how well the economy overall is performing.

15 But some companies just want to make as much money as possible in the shortest amount of time. If you hook-up with one of these contractors, you risk shoddy project management from a company that spread itself too thin. So, you absolutely must ask how many other jobs they ll be working on at the same time as yours and how available their subcontractors will be.

16 Learn all you can about how the contractor will manage your project Before you begin interviewing remodeling companies, organize your thoughts and make a list of all the questions you want answered. Your questions should revolve around the specifics of your project. And never forgot who the boss is! It s up to you to find the best match and ensure you maintain the proper control over your project. Asking these questions and getting satisfactory answers will help you accomplish your project goals: How long will it take to complete the project? If the contractor gets behind schedule, what do they do to rectify the situation?

17 How much money is required upfront? Also nail down the payment schedules. Does the contractor have the appropriate insurance policies in effect to protect your property and cover subcontractors? Most states require Workman s Compensation Insurance. But you still need to verify a contractor carries proper liability insurance by asking for copies of their coverage and checking with the issuer to ensure it s still in effect. The last thing you want to do is use your homeowner s insurance for claims. What is the contractor s knowledge of local building codes? How do they handle inspections and what action do they take if a project gets tagged by an inspector?

18 What portion of the work will be performed by the contractor s personnel and what exactly will be handled by subcontractors? With all subcontractor relationships, ask what experience they have working with each sub. What is the contractor s process for problem solving? What s the resolution process for complaints about workers, materials, quality and other project issues? What will be the contractor s working schedule? When and how often will workers be on your job site? Will the remodeling company hold regular progress meetings with you? How often will they communicate with you about the job?

19 What s the process for cleaning up the jobsite both at the end of each day and after the project is completed? If something doesn t get done, who will be held accountable and what will be the ramifications? Has the contractor ever had any complaints or disciplinary action filed against them by any entity? Was the complaint resolved? If so, how? You ll need to verify everything the contractor tells you, especially when it comes to resolved complaints. What references will the contractor provide? Specifically, you want to contact references for completed projects like yours. You need to verify, without any doubt, the remodeling company has the experience and expertise to complete your project successfully.

20 Beginning and end dates. The contract needs to outline a clear time frame of work. Cost factors. Make sure the total project cost is highlighted, as well as each individual line item. You also need to know the payment schedule and cancellation penalties. Warranty. What s covered at the end of work? Most remodeling companies cover craftsmanship and materials for at least one year. In addition, the warranty needs to specify liability. In other words, who takes care of warranty issues, the contractor, subcontractor or manufacturer?

21 Lien releases. One thing you can t afford to have happen is a subcontractor coming after you for nonpayment of their work. If the contractor doesn t pay them, you re legally obligated to -- unless you get a lien release. Therefore, you must require lien releases from subcontractors and suppliers in your contract. Otherwise, you re not protected if your contractor skips out -- you ll actually be paying for certain work twice. You just have too much to lose. If your contractor doesn t pay subs, and you don t pay them, subcontractors can put a mechanics lien on your home. These liens mean you can t borrow money against your home or sell it without paying the lien first. So make sure you remove this liability with the proper contract clauses.

22 Attorney review. To make sure you re fully protected, you should consider having an attorney review your remodeling contract before you sign it. Better to eliminate any gotchas before the project is underway and you ve paid money. You can also expect your remodeling contractor to run any contract changes you make by their attorney. They need to protect themselves too. Don t let the remodeling horror stories scare you away from doing a project. With some effort, you ll find experienced and responsible companies to deliver just what you want. Keep in mind it s your money and you re in the driver s seat. So, approach contractor selection assertively and remain vigilant so you end up with the project of your dreams.

23 Welcome to the Dream Assurance Plan Republic West makes the home remodeling process as painless as possible. With over 18 years in business, we ve learned a thing to two about how to efficiently complete projects to every customer s expectation. And our testimonials, references and track record back this up. We ve also developed the Dream Assurance Plan, a custom remodeling process that strives to deliver a pleasant experience and a successful outcome for our customers. We re determined to transform the expectations that every remodeling project will be a nightmare.

24 Welcome to the Dream Assurance Plan Republic West makes the kitchen remodeling process as painless as possible. With over 18 years in business, we ve learned a thing to two about how to efficiently complete projects to every customer s expectation. And our testimonials, references and track record back this up. We ve also developed the Dream Assurance Plan, a custom remodeling process that strives to deliver a pleasant experience and a successful outcome for our customers. We re determined to transform the expectations that every remodeling project will be a nightmare.

25 The Dream Assurance Plan includes three concepts: Design & Visualization Cost Certainty Time Certainty Republic West assures your custom remodeling project will be as you visualized throughout the entire process from creative design to detailed planning to execution and construction. And, we ll deliver it to you within the cost and time parameters you expect. For more information on kitchen remodeling, or to request a free, no obligation, design consultation, visit republicwestremodeling.com/remodeling-andconstruction.php or call (480)

26 About The Author Jim Weisman is owner of Republic West, an Arizona-based company specializing in home remodeling: kitchens, bathrooms, room additions, outdoor living spaces and more. For more information about Home, visit today.

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