PLAN CAREFULLY BEFORE HIRING A HOME IMPROVEMENT CONTRACTOR
Over the past few years, Massachusetts home values have gone up significantly and, with interest rates at all-time lows, many people are using the equity in their homes to fund renovations and additions. When planning a home renovation project, you want to be sure to select a licensed, insured, and reputable contractor who will finish the work on time and at the price you agree upon. Unfortunately, there are far too many instances of contractors abandoning projects, performing shoddy work, or increasing the price after the work has begun. To best protect yourself and ensure your renovation project turns out the way you expect, here are some steps to take and things to consider:
- Think about the design and set a budget. Depending on the scope of the project, you may want to hire an architect
- Determine what materials you want to use. Visit home improvement centers, search the internet for design ideas and price comparisons.
- Describe the work clearly in writing. Explain the dimensions you want and special functions or features.
- Interview multiple contractors. Provide each one with your written description of the project so that they are each bidding on the exact same specifications.
- Check with Board of Building Regulations and Standards to verify the contractor is registered with the state.
- Ask for references. Look at other work the contractor has completed and contact homeowners who have hired the contractor before.
- Get a detailed written contact and estimate. This should include the contractor’s registration number, the total cost, payment schedule, specifications and materials, provisions for change orders and extras, and a copy of the contractor’s insurance.
- Be sure the contactor obtains the building permits in their own name, as your agent. You should not obtain the permits yourself.
- The contractor cannot require a deposit of more than 1/3 of the total project cost – except for costs related to special order materials.
- If you are financing the project, shop around. Contractors are not allowed to lend you the money or act in concert with any lender if the financing is secured by a mortgage on your home. You have the right to use any lender you choose.
By following these steps, you can greatly minimize the chance of running into problems with your home improvement contractor and ensure the success of your home renovation project. However, when things go wrong, Lipton Law Group is here to help resolve any disputes that arise.