CENTRAL, Texas —
There has been no shortage of contractors-gone-wrong stories in Central Texas recently.
6 News reporter Andrew Moore has interviewed multiple people who were wronged by the contractors they hired. So, what can you do to make sure you don't end up in the same situation during your next home improvement job?
Moore spoke to a senior partner at the Sanderford & Carroll law firm to help arm you with all the right questions.
Construction contract Attorney Paul Sanderford helped us narrow down six questions that could expose an unreliable contractor before you sign anything.
“What will our contract look like?”
A legitimate contract must have four elements: Signatures from both parties, the scope of work being done, the timeline for work to be completed (or at least a completion date) and the terms of how and when the contractor will be paid.
If the contractor only provides an invoice or proposal without all these elements, you should think twice before hiring.
Insist that the terms of payment for the contract and a required end-date for the project are written down on the document before you sign anything.
Make sure both parties sign the document as well. The name of the business on an invoice does not count as signing.
“Do you have a business address where I can locate you?”
This might seem intrusive, but a legitimate contractor will have ties to the community and a designated business address where they can meet customers-- even if that address is their home.
If the contractor is not answering the phone or you need to mail them something, the business address will help track them down.
If the contractor will not give you any address, only uses a P.O. box, or claims to have an officer space that you cannot find, don't hire them.
“How do you handle change orders?”
A change order is simply an addition, subtraction or “change” to the existing contract.
If the contractor documents the change before any work is done, this can be a minor annoyance. If they don’t document the change, it can lead to big arguments about contract cost. It also gives the contractor a way to add costs by doing work without actual approval.
If either party wants to change something, a good contractor will be willing to give you a new document that lists the changes: The new cost, the new total cost and an adjusted timeline or end date.
A poor contractor may try settle for a verbal approval or will try to pencil the changes into the existing document. Ask your contractor how they handle contract changes ahead of time.
"Can someone I trust (sister, son, friend) look at the contract before I sign it?"
If a contractor is legitimate, they will have no problem with walking a friend or family member thought the contract and any changes to it.
If they are trying to take advantage of you, this will be the last thing they want to happen.
If the contractor insists he will only speak to one person throughout the process, look elsewhere.
“What references can you provide?”
Reputable contractors will have references who will speak on their behalf. They will also have good reviews on the better business bureau.
Ask for both.
A few good or bad reviews on Facebook will not tell the whole story.
“Can I pay you the second half of the money after the job is complete?”
It's not unusual for a contractor to need a certain amount of money upfront for materials, but you do not want to be in a position where you've paid 90% of the project cost for 30% of the work.
Tell the contractor you want payment terms written into the contract that require the job to be complete before they get a sizable portion of the money -- ideally 50%.
If they don't agree, don't hire them.
If they do agree to this, be prepared to cut the contractor off if they claim they can't finish the job halfway through -- no matter what the reason they need more money is.
If they can't meet their side of the contract, hire someone else.
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