Hello guys! Sorry for the late post this week, but I had to head up to Alaska and pick out my turkey (that’s a Senator Palin joke, guys). Just kidding!

With a decrease in buyers as of late, people have had to make their wares (house) more attractive to potential buyers. People are no longer overlooking the minor details, and nit pick on the smallest problems. Therefore there has been a trend of refreshing of homes, or remodeling projects in all areas.

Here are some tips that hopefully will come in handy when you do decide to hire a contractor.

1. Get at least three written estimates. Chances are you got a high quote and having two more to compare it with is just good sense. In this market, you may be able to use the lower two to leverage a better price with the contractor you like best.

2. Get references and call to check on the work. If possible, go by and visit earlier jobs. This is just good sense. you want to be able to examine and preview the goods or workmanship before you buy. It’s also a good idea to check with previous customers.

3. Check with the local Chamber of Commerce or Better Business Bureau for complaints. If nothing else, they keep records of any disciplinary actions or suspensions that your potential contractors have received in the past. You can also check to see if they are bonded or even licensed! Although I have to warn you from personal experience, a contractor has to do something really really bad to have a black mark put onto his record.

4. Be sure that the contract states exactly what is to be done and how change orders will be handled. Don’t leave anything up in the air. It is better to get things straight and clear before any work starts. You don’t want someone to tear down your roof and stop while it rains because you guys could not come to terms with something minor like who pays for the paint.

5. Make as small a down-payment as possible so you won’t lose a lot if the contractor fails to complete the job. I always like to structure the last final payment to be as much of the total contract price as possible. That way, I hold all the leverage.

6. Be sure that the contractor has the necessary permits, licenses, and insurance. You don’t want to get sued later, after you sell the house, by the new owners, and find that you have no one to file a cross-complaint against.

7. Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it. Please check with the local laws in your area though. I usually put in a penalty clause, such as a $100 per day charge for delays in completion. Keeps the contractors on time. Of course, if there are extreme circumstances, I always have the option of waiving it.

8. Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts. It’s good to know who exactly is working on your property. As with the above tip, if there are subcontractors, you need to get their information, in case you are ever sued. More cross complainants.

9. Get the contractor to indemnify you if work does not meet any local building codes or regulations. This may be a bit difficult. By human nature, no one wants to be liable for anymore than they have to be. So, I suggest you write it right into the contract. If they complain, choose another contractor!

10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage. Don’t give them the final payment until the site is clean. You have no idea how much throwing away garbage costs at the dump. Simple rule, you make the mess, you clean it up.

11. Guarantee that materials used meet your specifications. I always like to purchase my own materials. Especially the simpler, smaller things such as light fixtures and what not. That way I know exactly how much is spent. Some contractors buy cheaper products and still charge you for the more expensive ones to make a few bucks.

12. Don’t make the final payment until you’re satisfied with the work. Period.

I don’t have anything against contractors! Don’t get me wrong. I don’t think all of them are bad, or think ill of them as a group. I am merely sharing some tips on how to protect yourselves when hiring a contractor to work on your home. Hope you can use some of these! See you in seven (or fewer, this week).

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