Hiring a General Contractor - What You Need to Know Before Signing a Home-Improvement Contract

Before you sign a contract, make sure it includes:

1. the contractor's name, address, phone, and license number (if required)
2. an estimated start and completion date.
3. the payment schedule for the contractor, subcontractors, and suppliers.
4. the contractor's obligation to get all necessary permits.
5. how change orders are handled.

1. What should a general contractor know?
2. What should you check before hiring a contractor?
3. What should you not say to a contractor?
4. Do I need to sign a contract with contractor?
5. What is the difference between a general contractor and a home improvement contractor?
6. What kind of insurance should a contractor have?
7. How do you tell if a contractor is ripping you off?
8. What questions should you ask when hiring a contractor?
9. How much should I give my contractor up front?
10. Why are contractors so unreliable?
11. Is it normal to pay a contractor half up front?
12. Can you sue a contractor for not finishing a job?

What should a general contractor know?

What exactly do general contractors do?

• Estimate the entire project.
• Negotiate with, hire, coordinate, and supervise subcontractors.
• Establish a payment schedule and disburse the money.
• Obtain permits.
• Review plans and root out potential problems.
• Order materials and schedule deliveries.
• Troubleshoot.
• Schedule inspections.

What should you check before hiring a contractor?

Hiring a Contractor Checklist and Tips

• Get Multiple Estimates. Talk to several contractors and get written estimates from at least three. ...
• Hire Local, Licensed Contractors Whenever Possible. ...
• Check Their Past Work. ...
• Take Your Time Making a Sound Decision. ...
• Check Their Insurance and Bonding. ...
• Get Everything in Writing. ...
• Understand Your Right to Cancel. ...
• Don't Pay Up-Front.

What should you not say to a contractor?

8 Things You Should Never Say to a Contractor

• 'I'm not in a hurry' ...
• 'I know a great roofer/electrician/cabinet installer! ...
• 'We had no idea this would be so expensive' ...
• 'Why can't you work during the thunderstorm/snow/heat wave? ...
• 'I'll buy my own materials' ...
• 'I can't pay you today. ...
• 'I'll pay upfront' ...
• 'I'm old school.

Do I need to sign a contract with contractor?

In California, a written contract is required for all home improvement projects over $500. ... There must be a detailed, written payment schedule in the contract. The payments to the contractor cannot exceed the value of the work performed (with the exception of the down payment—see "REMEMBER" below).

What is the difference between a general contractor and a home improvement contractor?

A home improvement contractor is more of company that does it's own work with it's own people unless it's a specialty trade that's needed . A general contractor uses more subcontractors and also manages other job sites and can also operate as a consultant.

What kind of insurance should a contractor have?

Contractors and carpenters should have a general liability policy or CGL that is designed for their field of work. Professionals such as CPAs and consultants should carry professional liability insurance, which includes errors and omissions coverage. Hired workers should also carry workers' compensation insurance.

How do you tell if a contractor is ripping you off?

Top 20 Signs You Hired a Bad Contractor

1. They Don't Have Good Reviews. ...
2. They Overcommit to Work. ...
3. They Lack the Necessary Experience. ...
4. They Start Work, Disappear, Then Start Again. ...
5. Their Rates Are Significantly Lower Than Others. ...
6. They Don't Get the Right Permits. ...
7. They Don't Like Written Agreements. ...
8. Can't Provide Current References & Project Samples.

What questions should you ask when hiring a contractor?

15 Questions to Ask A General Contractor Before Hiring

• Are you licensed for this type of work? ...
• Which types of insurance do you carry? ...
• How many building permits have you obtained in my area over the last two years? ...
• Can you provide a list of references? ...
• What is an expected timeline for this project? ...
• Will you hire sub-contractors for the job?

How much should I give my contractor up front?

In California, the state limits advance payment at the time of contract signing to 10% of the total estimated job cost or $1,000, whichever amount is lower! All payments thereafter are supposed to be made for work performed or for materials delivered to the job site.

Why are contractors so unreliable?

All in all the building contractors have the power, and they know it. They can walk away from your project far more easily than you can walk away from them. ... You are relying solely on their personal senses of pride and professionalism - if those are low, the contractor will be unreliable every time.

Is it normal to pay a contractor half up front?

A: It's not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag. ... I recommend tying payments to progress made during the job.

Can you sue a contractor for not finishing a job?

It may become necessary to sue the contractor for breach of contract or an incomplete job done. Specific clauses in the contract will generally back up the owner in an attempt to hold the contractor for breach, violations and damages.