| The time spent in preparation for a home improvement project is critical to obtaining a satisfactory outcome. From conceptualizing the finished project to choosing a contractor, the more prepared a homeowner is, the better. Following are tips for homeowners who are planning a home improvement project.
1. Decide Exactly What You Want Done. A clear idea of the project, at the outset, will help to avoid disappointment later. The homeowner should determine exactly what the project is and what the finished project should look like. Careful preparation of the project plans will help to obtain accurate contractor bids and convey the homeowner's expectations to the contractor.
2. Set a Realistic Financial Limit. In conjunction with the decision on what the home improvement project will be, homeowners must honestly evaluate their financial resources to fund the project. The homeowner's vision of, and plans for, the finished project may need to be adjusted based on the homeowner's budget. If the project will be funded by a loan, the homeowner should consider whether the loan provides him with the best interest rate, terms, and tax advantages.
3. Select a Licensed and Conscientious Contractor. The selection of the contractor who will be performing the work is of utmost importance. Homeowners should check to make sure that the contractor is licensed in the areas required by the project (e.g., plumbing, electrical, etc.) and that the license is valid. Verify the contractor's business address and telephone number. It would also be helpful to determine if the contractor belongs to any professional trade organizations. Additionally, the homeowner should investigate whether any complaints have been filed against the contractor with the Better Business Bureau or the licensing board of the relevant state. Finally, the homeowner should ask for references to contact to discuss their satisfaction with the contractor's work.
4. Confirm the Contractor's Insurance Coverage Including Workers' Compensation. Absent the contractor's insurance coverage, if a worker is injured on the homeowner's property, the homeowner will be responsible for the worker's medical bills. The contractor should hold a liability policy for personal injuries and property damage, and be covered for workers' compensation.
5. Consider Bonds for the Project. Though the contractor is obligated to hold a contractor's license bond, the retention of other bonds may be prudent. A performance bond guarantees that the home improvement project will be completed per the plans. A payment bond would protect the homeowner's property from a lien. A contract bond essentially combines the protections of the performance and payment bonds. It guarantees that the project will be completed and that all the requisite payments for labor and materials utilized in the project will be made.
6. Solicit Competitive Bids. The solicitation of competitive bids will help a homeowner to obtain the best contractor for the best price. A good rule of thumb is to examine at least three bids, keeping in mind that the lowest bid may not be the best bid. Each bid should be compared against the other to understand variations in the bid prices as well as the materials proposed, length of time for project completion, and greater attention to detail. A bid that is significantly lower than the others should be regarded with caution because it could be the result of a mistake in the contractor's calculation or the price may not include all of the work that will be necessary to complete the project.
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