| Although a major home improvement can prove to | | | | mind on certain design aspects which may require |
| be a rewarding project, it can also turn your life | | | | more or less work from contractors. It is critical to |
| upside down if you are not prepared. I've heard of | | | | document every change order and note the exact |
| some worst case scenarios involving people who | | | | cost or savings. Changes should be signed and dated |
| have lost their homes because they got in over their | | | | by all parties. |
| heads and others who ended up with incomplete | | | | 6. Plans. Get a clear description on what will be done, |
| project nightmares that cost them thousands of | | | | how it will be done and the materials to be used. For |
| dollars to correct. | | | | smaller projects, contractors can draw up plans. For |
| Following is a list of the top ten mistakes | | | | larger and more complicated projects, find a qualified |
| homeowners make when undertaking home | | | | designer or architect. And, for example, if |
| improvement projects and tips on how to avoid | | | | load-bearing walls will be altered, find an engineer to |
| them: | | | | review the structural side of the plans. |
| 1. References. Do enough research and background | | | | 7. Costs. Estimating costs tends to be a big problem |
| checking to satisfy you. Walk away if the contractor | | | | because people do not make realistic comparisons. |
| is not willing to provide references from former | | | | Homeowners may hire the contractor with the |
| clients. Do an online search of the contractor's | | | | lowest price but that price may turn out to be much |
| business and personal name. Check with local courts | | | | higher in the end. "Allowance items" tend to be the |
| for judgments filed against them and with the Better | | | | main culprit in estimating costs. For example, |
| Business Bureau for any consumer complaints. Look | | | | contractors may give you allowances for flooring, |
| at previous work completed (in person). Check with | | | | lighting or hardware that are artificially low. The bid |
| material suppliers since a good contractor will have a | | | | looks enticing until you examine it closely. Request a |
| long-standing relationship with suppliers. Contact other | | | | line item for straight costs on materials and labor |
| contractors who have worked with them before. | | | | since some contractors mark up materials and labor |
| Check their credit standing - contractors with bad | | | | so they can make a profit on it. Ask the contractor |
| credit are often disorganized and don't manage their | | | | to pass along costs to you and to add a line item for |
| business well. Inquire about insurance, workers | | | | their fee. This creates a more clear and honest |
| compensation and licensing. | | | | assessment of the job. |
| 2. Project management. You need one person to help | | | | 8. Financing and payments. Before signing the |
| you manage your project. Most issues occur when | | | | contract, figure out how you are going to pay for |
| inexperienced homeowners try to manage their own | | | | your home improvement project. Make sure you |
| project. A project manager is a single point of | | | | maintain control of the money - don't let your project |
| contact between the homeowner and other | | | | manager or contractor control the money. This |
| contractors and is responsible for scheduling and | | | | sounds obvious but many homeowners allow |
| workflow. | | | | contractors to make draws on construction accounts |
| 3. Contracts. Make sure your contract is solid. As | | | | only to realize that the draws were not used for the |
| obvious as this may sound, failure to get a contract | | | | intended purpose. What does this mean? It means |
| or signing an incomplete contract is one of the most | | | | your contractor scored a new truck, you're out of |
| common mistakes. Put all the details in writing - never | | | | money and the project is incomplete. Tips: (1) don't |
| take someone's word for it. Following are items that | | | | pay a lot of money up front, (2) pay when materials |
| should be included in the contract: (1) the full name of | | | | are delivered, (3) pay when work begins and (4) pay |
| the company and the person you are doing business | | | | as work progresses. Pay only after work and |
| with and their contact information, (2) an addendum | | | | materials are inspected and approved. |
| consisting of the complete set of plans, (3) an | | | | 9. Inspections. Don't wait until your home |
| addendum consisting of the materials to be used, (4) | | | | improvement project is almost complete to do the |
| the price of the goods or services, (5) the manner | | | | inspection. Plan phased inspections along the way so |
| and terms of payment, (6) a description of the work | | | | work doesn't need to be re-done. Don't rely on city |
| to be performed, (7) a start date and an estimated | | | | and county building inspectors to protect you since |
| completion date, (8) a default clause in the event | | | | the codes they enforce don't guarantee quality (and |
| either party defaults that specifies how damages will | | | | they often miss things too!). Before paying for work, |
| be calculated, (9) warranties and (10) signatures. | | | | hire an independent inspector to do periodic phase |
| 4. Warranties. Make sure you receive a warranty | | | | inspections. |
| with detailed terms and conditions. Don't accept a | | | | 10. Materials. Stick with products that are tried and |
| contract that simply states that all work is | | | | true. This rule especially holds true when it comes to |
| guaranteed. There is often confusion as to who is | | | | windows, doors, framing materials, roofing products, |
| responsible for the warranty. Get the following in | | | | concrete coverings, epoxy floors, plumbing, light |
| writing: (1) Who is backing the warranty? (2) What is | | | | fixtures and electronics. You don't want to be the |
| covered and what is not covered? (3) How long is | | | | guinea pig that test runs the supposed latest and |
| the warranty valid for? (4) What can void the | | | | greatest new products or materials only to find out |
| warranty? (5) What is the process for placing a | | | | that these items don't last or turn out to be fire |
| warranty claim? | | | | hazards! |
| 5. Changes. During the project, you may change your | | | | |