Homeowners You Need To Know...
Four Keys To Successful
HOME IMPROVEMENTS
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Save yourself money, time and trouble by reading this publication.
EVALUATING THE KEYS
CONTRACTORS WHO IS THIS COMPANY AND ARE THEY REALLY QUALIFIED?
PROBLEMS WHAT IS THE BEST SOLUTION FOR MY SITUATION?
MATERIALS HOW DO YOU SELECT THE APPROPRIATE MATERIALS AND INSTALLATION PROCEDURES?
PRICE WHAT IS A FAIR AND LEGITIMATE PRICE FOR THE WORK TO BE DONE?
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This publication has been prepared by several CNA founders to assist you in your investment project. The material contained in this publication is based on information provided by Architectural, Manufacturer, and Trade Associations, as well as Consumer Protection groups. They provide this information as "Contractor Selection Criteria Guidelines" for homeowners.
CNA founded by seven contractors with over 300 years experience, serves to provide guidance and training for it's networked independent contractor members, so they can provide homeowners, the highest quality construction services at the lowest possible competitive rates.
CNA networked members commit to a "Code of Ethics" to provide professional service for their homeowner clients. See CNA Code of Ethics
CNA provides you with our toll free number 800-992-7047 so you can access the following:
Information about:
Specific contracting projects
Inquire about a member's standing within our organization
Arbitration service. In the unlikely event you are ever dissatisfied with the service of one of our members CNA can serve as an arbitrator helping bring the dispute to a quick and friendly resolution for all parties.
Taking the time to read this publication can save you thousands of dollars plus time, trouble and heartache.
Based on our experience and trade association relationships, we have been asked to help resolve numerous disputes between Contractors and Homeowners.
We have seen both satisfied and dissatisfied homeowners. We have discovered that there are clear-cut patterns in both the satisfied and dissatisfied situations. This publication has been written to help you identify the tell-tale patterns so that you better understand the contracting process.
If you do your homework and take the time to make the proper decisions, you will be one of the satisfied owners and not a disgruntled victim.
Generally, most dissatisfied construction project homeowners limited their focus to
"How Much Will The Project Cost"
&
"When Can The Work Get Started"
However, authorities have suggested focusing on many other questions before awarding your project to anyone.
Contracting is not a process that most homeowners are familiar with. There is a lot to learn before awarding your project, such as, what materials are available and what installation procedures should be used. Therefore, it's vital to know that you can rely on the contractor you choose to give you good advice about those products and procedures that may be new to you. The critical factor in a successful home improvement project is selecting the right contractor.
That's way we have put together this handbook on selecting a contractor. The questions contained in this publication are designed to help you determine reliability, reputation, and experience of the contractor, as well as, his dedication to delivering a project to your satisfaction.
architect Associations, Building Material Manufacturers, Trade Associations and Consumer Protection Agencies have published guidelines for selecting a contractor.
In this publication, we have condensed that wealth of information into the four critical areas.
Contractors Who is this company and are they really qualified?
Problems How do you determine what is the best solution?
Materials How do you select the appropriate materials and installation procedures?
Price How do you determine what is fair and legitimate price for the work to be done?
At CNA, we suggest that you evaluate your contractor as carefully as you would choose your Doctor or Lawyer. you will want to select a contractor who can perform the work to your expectations and satisfaction.
This publication contains very straight forward questions that you should ask contractors, in order to protect yourself from the non-professional or unqualified contractors. Then you can be assured that you will be satisfied at completion of your project and years into the future.
A professional contractor will have no problem working with you to answer these questions so that you can proceed with trust and confidence. Ask these questions of all contractor companies.
You will need to evaluate the quality and completeness of the proposal before you approve the contract. Does the proposal include everything you need and discussed with the contractor? Is the price in-line with the value being delivered? Be forewarned about the low-price contractor.
Carefully determine that the contractor is providing a fair value for that low price. Studies clearly show that most dissatisfaction involves the low-bid contractor.
The dilemma for most Owners is what criteria should be used to qualify a proposal and contractor? How do you tell if the contractor is a professional and will deliver what is specified? How do you determine if he'll stand behind his work or will be financially responsible if there is a significant flaw in his work? How do you determine if the price is right?
While there is no clear-cut simple answer to these questions, there are a number of indicators that will help you qualify certain contractors and reject others in order to protect yourself and get the best return on your investment.
Evaluating The Contractor
The critical success factor, in any construction project, is the contractor. A qualified, professional, experienced contractor knows what results are required for Owners satisfaction, as well as, what will lead to problems and dissatisfaction after the job is done.
Allow yourself a minimum of one hour to sit down with each contractor. Both of you need to explore the problems, materials, and price. You will be surprised at how many options and questions can be discussed with a professional contractor. Be sure you allow enough time for this process.
Most dissatisfaction involves a homeowner that did not fully know what they selected or committed themselves to. A professional contractor will take pride in his work and will have no problem discussing your options, his previous experience, and his list of satisfied customers.
Focus On These Questions
1. What is the full name and address of the company?
All "Contractor selection" Guidelines start with this question because most dissatisfaction involved low-bid undercapitalized contractors.
STOP
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Automatically reject any contractor without a permanent place of business.
If the contractor is not permanently established how can you be confident he will complete the work? How can you be confident he will be in business if the work needs service in the future? What do you do if the project fails and you are financially harmed or the contractor is not financially responsible?
The courts are full of dissatisfied Owners with worthless judgments against insolvent contractors. While there is no way to guarantee any business is financially stable, there are some tell-tale signs, and steps you can take to protect yourself, and assure your satisfaction.
The first important step in the selection process, where practical, is to visit the contractor's place of business. Does it look like it has been established there for a long time? Does it appear that the equipment, manpower, and wherewithal is available to complete your project in a professional and timely manner. However a big operation does not always insure a quality job.
STOP
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Automatically reject any bid from a contractor without substance.
Do not be swayed by a personable contractor or his attractive low price. It is not worth the risk. Select only a contractor that is financially committed to the business. Select someone you can call if a problem arises in the future.
A professional contractor will have no problem providing whatever financial proof is required for your peace of mind. Don't be timid about asking. The professional respects these questions and knows that time is being well spent with an intelligent buyer.
2. Does the company carry insurance and is the coverage adequate?
This is the second most important question. Owners have been financially harmed by uninsured or inadequately insured contractors.
STOP
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Automatically reject any contractor without proper and adequate insurance.
A contractor should provide you with a Certificate of Insurance for comprehensive Liability Insurance, Worker's Compensation, and Completed Operations Insurance that protects you in the event of an accident or provides you financial coverage for a failed project. The insurance should be adequate to cover the property.
Contractors may also carry other forms of insurance, such as health insurance and vehicle insurance. Do not be confused by these policies. Do not allow the contractor to pass them off as his proof of "contractors" insurance. Also check carefully the dates on the Certificate of Insurance. Is it current? Contractor insurance policies are for one year and unscrupulous contractors have been known to modify the dates. Call the insurance company and verify coverage.
A professional contractor will have no problem complying with your insurance questions and requests for proof.
Worker Accidents Be aware that Owners are sued for injuries on their property. Most Owner Insurance Policies exclude outside contractors, so it is critical to make sure there is proper and adequate coverage. Don't be fooled by the ontractor who says he doesn't need insurance because he is self employed.
A tell-tale pattern of an uninsured or underinsured contractor is the low-bid. Be very wary of the low-bid. Also be wary of multiple low bids. You may have several uninsured contractors bidding the project.
Today, insurance to protect the workers and your property is a significant cost of a construction project.
For example, Worker's compensation premiums are typically no less than 20% on top of the worker's wage, and can go as high as 100%, depending upon the type of work.
The contractor, working without insurance, saves between 20% and 100% of his labor cost by operating without insurance, but he puts you at great risk.
The contractor working without insurance, generally has no assets and nothing to lose, so you as the Owner, are totally exposed to any losses.
A professional contractor will readily provide you with a Certificate of Insurance and phone numbers you can call for verification.
Job Site Safety Ask contractors about their Safety Plan, which is required by OSHA. Safety violations are now causing projects to be shut down and penalties are levied against involved parties. Some Owners have been stuck with incomplete projects due to violations and the contractor's unwillingness to pay fines or return to the site. In some cases, the Owner can be classified as the employer and be found responsible for the fines.
Professional contractors will readily provide you with a Safety Plan so you are protected. The Safety Plan is another tell-tale sign of professionalism or the lack of same.
3. Is the company a licensed contractor? Is the contractor a member of a trade association and in good standing?
STOP
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Automatically reject any contractor who is not licensed. (where required).
However, do not be fooled by a contractor with a license. Generally, the license requirements are minimal and the law is often poorly enforced.
A better test is to question the contractor's commitment to his trade. Is he a member of the trade association. Call the association and verify the answer. Ask if the contractor is taking Continuing Education Training, similar to other up-to-date professionals. Ask to see certificates.
A professional contractor will be only too happy to respond to these questions.
STOP
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Reject the contractor who blows off your questions as not being important. There are probably a lot of other issues he deems unimportant and maybe one is your complete satisfaction.
4. How Long Has The Contractor Been in Business?
Needless to say, the more experienced the better. Under five years is often a tell-tale sign of an unstable business. Most contracting businesses (90%) fail within the first five years. Examine a new business with extra care before committing yourself.
Check references carefully. current references are only valuable to see if the Owner is happy with the contractor's work, but only long term references are the proof of actual performance of the contractor's work.
Most failed construction projects do not happen quickly, but deteriorate over a period of years. Recent job references should carry minimal weight in the decision making process vs. long term projects.
5. What is the contractor's track record for handling complaints?
STOP
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Automatically reject an any contractors who says they never had a complaint. The best of contractors find themselves in disputes for one reason or another.
Ask the contractor for the names of a problem account and explanation as to how they rectified the complaint.
Be forewarned that many quality contractors, in business for a long period of time, and with thousands of completed projects, are exposed disputes. the question is, not if they have had disputes, but what they did about the dispute after it occurred.
6. What is the company's workmanship warranty.
Typically, contractors workmanship warranties are for one year or more. Longer warranties are not necessarily more valuable than shorter warranties. The length of the warranty is less important than the intent and ability of the contractor to stand behind his warranty. The professional contractor often performs well beyond the written warranty period because he know that this is what builds customer loyalty and referrals.
STOP
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Automatically reject any contractor with an unbelievable warranty. The warranty is just a sales tool to that contractor and you don't know what other "bill of goods" you've been sold.
However, if the contractor has been trading under the same company name for a long period of time, his warranty is in fact more valuable.
The long term material warranty is provided by the manufacturer. It is critical to be assured that the product will be installed according to the manufacturer specifications, or there will be no warranty regardless of the document you were provided.
With many materials, the warranty is only valid if the contractor is "Certified" to install the product. Ask to see the contractor's training and certification certificate from the manufacturer Call the manufacturer to determine if it is valid and the contractor is still in good standing.
Professional contractors will have no problem providing this proof, in fact, they will usually present their credentials before being asked.
7. Specific questions for specific projects. Compliance with local ordinances - Question the contractor about what is required. Contact the local building department for verification. Question if the permit is included in the cost and who is responsible for obtaining the permit.
Product Selection Make sure the proposal includes a specific reference to the product and color you have chosen. Your proposal will be your proof of purchase in later years.
Manufacturer Warranty Specifications - If the project is to be warranted by a manufacturer, confirm that the agreement states that the work will conform to the manufacturer specifications.
Clean-Up Call for daily clean-up to help minimize safety issues or exposure.
Payment Terms Schedule, terms and methods should be clearly detailed in the agreement. Establish an agreement regarding retainage if a certain portion of work is left incomplete or there is a "punch list" of incomplete items.
Preliminary Inspection Plan to meet with the Job Foreman who will be responsible for your satisfaction. Make sure he fully understands the specifications and promises made by his company. Establish the condition of the property before the work starts in the event there is property damage during construction.
Understanding the Contractor Just as you are qualifying a contractor, the contractor is qualifying you. If you seem unreasonable, he may not be interested in your project.
For example, if you do not allow the contractor ample time to explain the project, so that he is confident you understand everything about it he professional will often not bid the job.
Professional contractors fear a bad experience or lack of referrals from a non-satisfied Owner who has misperceived expectations. The professional knows he is not a mind reader and the owner is not a qualified contractor. He recognizes the critical importance of this first step of the process so he will not take the risk. Show the contractor you are informed and that you are looking out for both his and your best interest.
Getting A Contractor to Bid your Work Some Owners are confused when contractors are not over-eager to bid the work.
If contractors believe you are not ready to buy the work, or you are just a price shopper, they may feel that you are not worth their time.
Here is how you can get them to bid:
Tell the contractor you are getting only three bids. You are not looking for ten.
Tell the contractor you are not looking for the lowest bid, but the best value for your investment.
If you were referred to the contractor or you saw his work and liked it, make sure to mention that.
Click here to get the COMPANY "APPLES TO APPLES" COMPARISON checklist
We are CNA hope this publication will help you make a wise contracting decision. Sure it seems like a lot of work, but if you have had a bad contracting experience, or know someone who has, you can appreciate the value of the time.
The time required to do your homework is minuscule to 1) the problems you can have if you select the wrong contractor, and 2) the time and money it takes to rectify a bad situation.
"Only the extremely wealthy can afford to make a poor contracting decision ....because they have the money to do it again"
Please feel free to call our toll free Hot Line 800-992-7047 with any specific questions or contractor recommendations.
Also remember our Free dispute Resolution Service, in the event you have a disagreement with one of our members. Our members have pledged to the enclosed Code of Ethics.
