I’ve already given you some pointers on how to choose the right contractor. You’ve done all of your homework and everything looks good with the person you are going to work with. You’re ready to sign.
Image: Oregon Dot / Flickr
First of all, make sure the contract your contractor is showing you has all of the relevant contact info as well as GST and business numbers. Also make sure that the contractor provides you with a very detailed listing of costs, and that the contract shows when they are going to begin and when the work is going to end.
If there are weird things on a standard or pre-printed contract that your contractor says “doesn’t apply to this job,” make sure you cross them out or put an “NA” next to them. And if this is going to be a major piece of work to your house, it’s always a good idea getting a lawyer to just give the contract an once-over.
Once you sign, your contractor will likely get you to put down a deposit of around 10-20%. If they are asking for more, this could be a warning sign. It also seems obvious, but don’t let the contractor sucker you into a cash deal. If the contractor wants you to pay in instalments, make sure that they are connected to the completion of particular tasks (such as tiling the bathroom, or installation of the water heater). And put this all down in the contract.
When the job is done, hold back 10% of the fee until 45 days have passed since its completion. This is partially to make sure that nothing falls apart right away, but it is also to make sure that you can pay any subcontractors who’ve placed on lien on this work in the off chance the main contractor has vanished or is withholding their pay.
That’s about it! You are probably frightened out of your wits now, but generally, most contractors will surprise you with how efficient, hard-working and professional they are. All of this work is to ensure that you don’t get that one-in-a-thousand scam artist who will potentially bankrupt you. If you do your homework, get everything in writing, and pay the workers appropriately, you’ll have a home renovation you’ll be proud of.
Nelson Goulart
Broker of Record with Signature Service GMAC Real Estate
www.ssgmac.ca
