An important aspect of hiring a contractor to work on your home is understanding what permits, special requirements, or licenses are required for each job. Once you get the hang of it, you can tell if it’s better to hire a licensed contractor or a handyman.
REFERENCES
Be sure to ask for references and references and know the relationship of the parties regarding the contractor. Request pictures of installations on similar jobs that have been done for others and call or visit the people they refer to to ask about how the job was done, the attitude during the job, being on budget and finishing on time. Find out if there are any negative reviews online or with the BBB. Make sure he or she is qualified to handle the scope and type of work needed, especially regarding special conditions like lead-based paint, asbestos, mold, etc.
IDENTITY
If the home is occupied, personal items are stored there, or vacancy has not been verified, be sure to rate your contractor if you don’t know them through online services like mysmartmove.com or others. Obtain a copy of the contractor’s driver’s license and have them sign a W-9 form to include their social security number. If you are an investor and renewals are common for you, you may want to investigate the Verify Photo ID app recommended by Inman News.
CONTRACT
Next, execute an Independent Contractor Agreement with your contractor. Make sure there are no words or requirements that suggest the contractor is an employee of yours.
STAGES
Now is the time to outline and understand the three phases of renewal. The initial Phase One is paid on day 1 of the job. The subsequent draws of the Second and Third Phases must be paid weekly, on Monday or Tuesday. In phased construction, the contractor must budget for each item and any over- or under-quoting is the responsibility of the contractor, not the owner. Make sure your agreement covers things like milestones and outlines the scope and sequence of work to be completed. The contract must include the description of all work and the condition of Customer Satisfaction, such as all items being completed in a professional manner, the workplace being left clean and tidy on a daily basis, and no item being incomplete.
MATERIALS
Ideally, the homeowner should have chosen paint colors, sheens, types for each space, cabinets, granite, and any materials that will be used in the project at the source. Have your independent contractor pay for those materials and have that supplier deliver the materials to the job site, then reimburse the contractor immediately; this strategy avoids any appearance of establishing an employee/employer relationship. Don’t pay for routine tools and supplies that the contractor uses in their daily work, such as brushes, ladders, tarps, etc.
UPDATES
If you are not the owner occupant on the job site, ask the contractor to provide daily pictures and video of each phase when it is complete before scheduling a personal inspection and before payment for that phase is released. An investor can use this in the future or in marketing.
FULL
In exchange for the final payment, the homeowner must sign that they are satisfied with the work and the independent contractor must sign that they release all liens in exchange for the final payment.