Professional Documents
Culture Documents
CONTRACTORS
GUIDELINES
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Table of Contents
HIRING A CONTRACTOR/REMODELER ................................................................................. 1
Introduction................................................................................................................................. 1
HIRING A CONTRACTOR/REMODELER ................................................................................. 2
Contractor License ...................................................................................................................... 2
HIRING A CONTRACTOR/REMODELER ................................................................................. 3
Insurance ..................................................................................................................................... 3
HIRING A CONTRACTOR/REMODELER ................................................................................. 4
Sample Hiring Checklist ............................................................................................................. 4
THE REMODELING CONTRACT............................................................................................... 5
Red Flags .................................................................................................................................... 7
GENERAL CONTRACTOR AGREEMENT ................................................................................ 8
General Release Of Liability .................................................................................................... 10
Waiver And Release ................................................................................................................. 11
THE REMODELING CONTRACT............................................................................................. 12
Lien Release.............................................................................................................................. 12
THE REMODELING CONTRACT............................................................................................. 13
Sample Conditional Lien Release............................................................................................. 13
THE REMODELING CONTRACT............................................................................................. 14
Sample Unconditional Lien Release......................................................................................... 14
Unconditional Waiver and Release Upon Progress Payment ................................................... 14
THE REMODELING CONTRACT............................................................................................. 15
Change Order or Extra Work Order.......................................................................................... 15
THE REMODELING CONTRACT............................................................................................. 16
Sample Change Order or Extra Work Order Form................................................................... 16
JOBSITE PROGRESS.................................................................................................................. 17
Points to Ponder ........................................................................................................................ 17
Project Schedule........................................................................................................................ 18
JOBSITE PROGRESS.................................................................................................................. 19
Communications ....................................................................................................................... 19
Sample Communications Sheet ................................................................................................ 20
JOBSITE PROGRESS.................................................................................................................. 21
Punchlist.................................................................................................................................... 21
Sample Punchlist Inspection List.............................................................................................. 22
Sample Pre-completion Punchlist Form ................................................................................... 25
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HIRING A CONTRACTOR/REMODELER
Introduction
Hiring a contractor is much like accepting a new member into your family. For the next few
weeks or months, you will be spending a lot of time with this person and/or crew in your home.
Spend time now qualifying the contractors capability and developing a relationship to ensure
communication can be reached with this person. You might want to consider family or marriage
counseling at first but this will not be included in the cost of the contract (JUST KIDDING!).
Always interview as many contractors as possible (a minimum of three is recommended). You
will also want to get bids from several contractors. Make sure each contractor is clear on what
you want to do. Compare the bids to your instructions.
We will now review some helpful tips and follow up with a Hiring checklist. Check the
contractors references from people they have worked for in the past. The three most important
references a contractor can provide are two of the most recent clients for whom the contractor
has preformed work and a current client. We ask that you get a fourth, one client that the
contractor had to return to correct a mistake or complaint. The questions below may help you
evaluate your potential Contractor.
If there were changes from the contract, how were they handled?
Did you find it easy to communicate with the contractor and did he stay in touch and
keep you informed of the process?
If you had to do this work over again, would you hire the same contractor?
As time goes on you will discover additional questions that might be included in hiring a new
contractor, as some will not do work out of their preferred area.
HIRING A CONTRACTOR/REMODELER
Contractor License
Any reputable contractor will have no problem obliging you with this request. California
contractors are required by law to hold a license from the Contractors State License Board
(CLSB) for all work that exceeds $299.00 in cost. This will vary State to State, be sure to check
what your State will require.
Contractors that install only one improvement (e.g. plumbing) must hold that particular specialty
license (this is a C license).
If three or more specialty improvements are going to be needed (e.g. electrical plumbing,
roofing) the work must be performed by a contractor who holds a general building contractors
license (B1 license).
Ask your potential contractors to provide you with their California Contractors State License
Identification card (comparable to a plastic credit card with name and license clearly shown). It
is always a good idea to verify the name and license number with the (CSLB). It is important to
make sure that any license presented to you is valid, and it belongs to the person with whom you
are speaking. Any work valued at or exceeding $299.00 must be performed by a licensed
contractor. Furthermore, any work valued at or more than $500.00 must have a written contract.
Avoid scams by checking the contractors license number with the CSLB automated verification
number at 800-321-2752. Also checking references help avoid scams. It is also important to
remember a contractor cannot loan their license to any third parties for the purpose of performing
work.
HIRING A CONTRACTOR/REMODELER
Insurance
Make sure that the Contractor you choose has appropriate insurance coverage. The contractor
should have 2 types of insurance in order to protect you while they are performing the work.
General Liability Insurance Covers any accidental damage or injury that might occur on
your property during the process of completing the work.
Workers Compensation Insurance Covers any possible work related injuries at the job
site (your property). California requires all employers, except sole contractors, to have
this type of insurance. Check with your State requirements.
When working with Sole Contractors there may be specific rules which apply for your
protection. Check with your State. In California you may get these rules by contacting the CSLB
or the League of California Homeowners.
HIRING A CONTRACTOR/REMODELER
Sample Hiring Checklist
Checklist Task
Complete
The Contract should include the contractors name, address, telephone and license
number.
The contract should have a time frame. Include approximate start and a substantial
completion date.
Never under any circumstances sign a blank or partially blank contract. Both you and the
contractor are bound by what is in writing on the contract. Do not leave blanks to be
filled out later or with the phase TBD. Read it carefully and thoroughly before signing. If
you have questions or unclear of wording, have it explained to your satisfaction before
signing. Make sure all of the financial terms have been agreed upon and that they are
clearly written. Once you have signed MAKE A COPY FOR YOURSELF and keep it
for your records.
Make sure all financial terms are spelled out in the contract and both you and the
contractor are clear on them. The total price, payment schedule and any cancellation
penalty should be clear. Have an understanding how the Contractor will invoice you.
Note: You should expect to pay 1/3 of the total contract as a down payment. Payments
after should be determined prior to the signing of the contract. Either weekly, monthly or
at set completion stages.
Contract should specify all materials to be used, quality, color, weight, size, brand name
and quality. Only a written contract protects both the Homeowner and the Contractor.
Therefore, your Contractor should put in all agreements and any oral arrangements made
during the negotiations in writing on the contract. This is the most important item that
will hold the project together and ensures all parties are in agreement of the scope and
final vision of the project. It is not in the contract it does not in the eyes of the court exist.
Make sure all parties initial all pages of the final and set contract.
Never under any circumstances sign a blank or partially blank contract. Both you and the
contractor are bound by what is in writing on the contract. Do not leave blanks to be
filled out later. For example, the contract should say install oak kitchen cabinets
manufactured by AAA, Inc. according to plan, not just install kitchen cabinets.
If a warranty is offered, get it in writing and read it carefully. A warranty must state
whether it is limited (meaning repairs, replacements, or refunds are limited in some way),
or full (one that will repair or replace the product or refund your money within a certain
time period). The warranty should spell out all terms and conditions in a way that you can
understand them. It should specifically say by name whom will honor the warranty the
contractor, the dealer or the manufacturer. The warranty must include the name and
address of the party offering it and the duration of coverage. Warranties for products such
as appliances or cabinets are passed through the manufactures.
Your Contract should include everything you think is important. Some items that may seem
miniscule now may become a hurdle later. The list below may have some items that you might
want to think of including:
Any special request such as saving lumber (for firewood) and unneeded material or old
appliances and fixtures (to reuse).
Any special instructions regarding pets, children, areas where materials may be stored, or
landscaping to be temporarily moved.
Security who gets keys or access codes and what means of security will be taken when
a wall might be knocked down.
Federal law requires a contractor to give homeowners written notice of their rights to, without
penalty, cancel a contract within three business days of signing it, provided was solicited at some
place other than the contractors place of business or appropriate trade premises the
homeowners residence, for instance. This is your Right of Rescission.
The contract should include procedures for handling change orders during the course of the
project.
A binding arbitration clause is also a good inclusion in the event a disagreement occurs.
Arbitration enables both parties to resolve disputes more quickly and effectively with out costly
litigation.
Request a contractors Affidavit of Final Release be provided to you at the time you make the
final payment, or obtain final lien waivers from all subcontractors and suppliers. These are your
assurances that you will not be liable for any third-party claims for nonpayment of materials or
subcontractors.
Red Flags
The items below are RED Flags that a Contractor might not be someone you want to deal with
You cannot verify the name, address and telephone number or credentials of a contract.
The salesperson tries high-pressure to have you sign a contract by using scare tactics,
intimidation or threats. (Remember you have 3 days to cancel a contract). The
salesperson tells you this is a special price available today only if you sign.
The contractor does not comply with your request for references, or the references have
some reservations about a job the contractor did.
You are unable to verify that the contractor is licensed or insured and the law requires
such.
Beware of anyone who tells you that the Federal Housing Administration or any other
government agency approves or endorses a remodelers work
You are asked to pay for the entire job in advance or to pay cash to a salesperson instead
of using a check, credit card or money order to the company itself
You are asked to sign a completion certificate for the job before it is properly and fully
completed.
OWNER:
Name: ______________________________________________________________________
1. Work Site. The work and services will be preformed at the following location:
12345 Rental Road, Hometown, CA 11111
2. Scope of Work. The work to be preformed is to contract a redwood deck along the south side of the
residence, according to the drawing attached to this contract as Exhibit A. The Contractor will furnish all
of the materials and perform all acts required to complete such described work.
3. Workmanship Permits. All materials are guaranteed to be as specified and as warranted by the
manufacturer. All work will be completed in a workmanlike manner according to standard industry
practices. The materials and work will comply with applicable building codes and ordinances. The
Contractor will obtain the necessary permits and sanctions of the proper authorities with respect to the
work which will be preformed.
4. Architect. The construction shall be under the direction of, and in the accordance with the drawings
and specifications prepared by the following Architect:
Deck R Designers
1010 Decker Rd, Hometown, CA 22222
5. Time of Completion. The Work to be preformed under this Agreement shall be started by March 3,
2005, and shall be substantially completed by March 23, 2005, except that the time of completion is
contingent upon strikes, accidents, performance of subcontractors, availability of materials and other
delays beyond the contractors reasonable control.
6. Contract Price and Payment. Owner will pay Contractor for the satisfactory completion of the Work
the sum of $__________ for the entire project. The payment reference herein shall be paid in the
following manner: twenty percent down payment, with one half of the remaining balance paid when
rough framing is finished, and the balance upon receipt of building inspectors approval of the project.
Note: Failure to make payments as provided above may result in Contractor having an
enforceable claim against the property in accordance with applicable laws.
7. Change Orders. Any alteration or deviation from the drawing and specifications involving extra cost
will be undertaken only upon written order of Owner, and will become an additional charge and may
extend the time of completion
8. Subcontractors. The Contractor may engage Subcontractors to perform Work, provided that the
Contractor will continue to be responsible for the performance of all Work under this Agreement.
9. Insurance. The Contractor will maintain, and, if applicable, require Subcontractors to maintain, the
following insurance coverage:
Workers Compensation Insurance according to applicable state laws
Contractor Liability Insurance in a sum of not less than $500,000.
10. Disputes. If there is any question about the meaning of the drawings and specifications, it shall be
decided by the Architect, whose decision will be final. Any controversy of claim arising out of or relating
to this Agreement (including the above questions if there is no Architect), or the breach thereof, shall be
settled by arbitration in accordance with the Rules of America Arbitration Association, and judgment
upon the reward rendered by the Arbitration(s) may be entered in any court having jurisdiction thereof.
11. Additional Terms. Contractor will remove and replace any fencing and gates necessary to bring in
equipment and materials, at no additional cost.
12. Miscellaneous.
a) This Contract is binding on all parties who lawfully succeed to the rights or take the place of
the Owner or Contractor. This Contract may not be assigned by either party without consent of the other.
b) If any legal action or proceeding, including any arbitration of dispute, arising out of, or relating
to, this Contractor Agreement is brought by either party, the prevailing party as determined by the Court
of Arbitrator, shall be entitled to receive from the non-prevailing party, in addition to any other relief that
may be granted, reasonable attorneys fees, costs and expenses incurred in the action or proceeding by the
prevailing party.
c) This Contract will be interpreted under the laws of the State in which the work is to be
preformed
THE PARTIES HAVE READ THE CONTRACT. THEY HAVE RECEIVED A COMPLETELY
FILLED-IN COPY AND ACKNOWLEDGE RECEIPT OF COPIES OF THE DRAWINGS AND
SPECIFICATIONS, IF ANY. THE PARTIES HAVE SIGNED THE CONTRACT AS OF THE DATE
WRITTEN ABOVE.
OWNER:
_________________________________________ Date ________________________
John Doe
CONTRACTOR:
_________________________________________ Date ________________________
for ABC Homebuilders, Inc.
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Properly endorsed and has been paid by the bank upon which it is drawn, this document shall
become effective to release any mechanics lien, stop notice, or bond right the undersigned has
on the job of
____________________________________________________ Located at
(Owner)
_________________________________________________________________________
(Job Description)
This release covers the final payment to the undersigned for all labor, services, equipment or
material furnished on the job, except for disputed claims for additional work in the amount of
$_______________
Before any recipient of this document relies on it, the party should verify evidence of payment to
the undersigned
Dated ________________
______________________________________________
(Company Name)
By ______________________________________________
(Signature)
_______________________________________________
(Title)
NOTE: CIVIL CODE 3262 (D) (3) PROVIDES: Where the claimant is required to execute a waiver and release in
exchange for, or in order to induce the payment of a final payment and the claimant is not, in fact, paid in the
exchange for the waiver and release or a single payee check or joint payee check is given in exchange for the waiver
and release, the waiver and release shall follow substantially for the form set forth above
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The undersigned has been paid and has received a progress payment in the sum of
$ ______________________
(Amount of Check)
On the job of
____________________________________________________ Located at
(Owner)
_________________________________________________________________________
(Job Description)
And does hereby release pro tanto any mechanics lien, stop notice or bond right that the
undersigned has on the above reference job to the following extent. This release covers a
progress payment for labor, services, equipment or material furnished
To ___________________________________________________
(Your Customer)
through_____________ only and does not cover any retention or items furnished after that date.
(Date)
Dated ________________
______________________________________________
(Company Name)
By ______________________________________________
(Signature)
_______________________________________________
(Title)
NOTE: CIVIL CODE 3262 (d) (3) PROVIDES: Where the claimant is required to execute a waiver and release in
exchange for, or in order to induce the payment of a final payment and the claimant is not, in fact, paid in the
exchange for the waiver and release or a single payee check or joint payee check is given in exchange for the waiver
and release, the waiver and release shall follow substantially for the form set forth above
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When making and amendment to the original contract via a Change Order or Extra Work Order
be sure to follow these guidelines
Before new work begins, make sure all changes to the project are made in writing and
signed by the Contractor and Homeowner
Change Orders should be priced prior to acceptance many will change the overall
budget
Ask your Contractor how this may impact the original schedule
Both parties should keep signed copies of the Change Order in their files
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PROJECT:
_________________________________
(Contractors Name)
(Name)
_________________________________________
______________________________________
(Contractors address)
(Address)
_________________________________________
(City, State Zip)
______________________________________
(City, State Zip)
TO: ___________________________________________
(Owners Name)
___________________________________
_______________________________________
(Owners Address)
Changes _______________________________________________________________________________________________
______________________________________________________________________________________________________
paid the cost of the extra work (as defined above) plus ________% overhead Plus __________% profit
____________
COST PLUS FIXED FEE: The price to be paid for extra work will as
defined above will be a fixed fee of $____________________________
or
___________
___________
___________
_____________________________
(Business Name)
__________________________________
(Owners Name)
_____________________________
__________________________________
(Contractors Signature)
(Owners Signature)
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JOBSITE PROGRESS
Points to Ponder
Assuming we have now signed our contract and are finally ready to get our hands dirty and
begin the project.
Just how does the Contractor know what comes next Better yet how do you?
There are a few management tools we have prepared to help you along the way. These have to
do with the schedule of the project, communications and the punchlist
JOBSITE PROGRESS
How long does your Remodeler anticipate the job taking? How will you know how long the
change orders will take? You should ask for a written schedule similar to the sample provided on
the next page, and then arrange regular weekly meetings with your contractor to review progress,
update the schedule and discuss any other issues.
The Sample schedule keeps track of the major milestones for 31 calendar days. This schedule
can be modified to show detailed task under major headings and additional calendar days.
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Project Schedule
PROJECT SCHEDULE
Milestone/Task
MONTH _______________
1
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Plan/Permits
Tear-out/Demolition
Excavation
Concrete
Masonry
Floor Framing
Roof Framing
Roof Covering
Exter. Trim, Porch
Deck
Siding
Doors and Trim
Windows and Trim
Plumbing
Heating/Cooling
Electrical
Insulation
Inter.Wall Covering
Ceiling Covering
Interior Trim
Cabinets, Appliances
Specialties
Floor Covering
Clean-Up
LEGEND
____/____/________
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____/____/________
JOBSITE PROGRESS
Communications
Designate and on-site Communications Area where you and your Contractor can relay
information regarding the progress of the project. A Communications sheet can be used such as
the example provided. Additional Communications tools such as e-mail can be used by the
Contractor and Homeowner.
Its important to know how the construction company youve hired works internally.
Who will handle the temporary plastic that blows off the windows in a storm or who is
the contact for the electric connection if it keeps blowing fuses?
What are their general working hours? Ask about the contractor, crew and the
subcontractors working hours. Are they 7 to 4 Monday through Friday? Do they work
weekends in case they can not work during the week?
Any Communication that provides you with an understanding of what to expect can be
helpful
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JOBSITE PROGRESS
Sample Communications Sheet
Job:________________________________
DATE:
On Site Communications
Milestone:
NOTES:
Homeowner
Contact:
Contractor
Contact:
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JOBSITE PROGRESS
Punchlist
The Homeowner and the Contractor near the end of the remodeling project use a punchlist.
Together, the Homeowner and Contractor make a walk-through list of items inspected that are
not complete. The items on the list need to be completed as noted on the Punchlist for the
Contractor and crews to be finished. This is an important step to that must be done to protect the
homeowner. It gives the Homeowner the opportunity to see if he has the results he expects. If
the Homeowner makes changes rather than just corrections a Extra Work Order might be
needed.
MAKE SURE TO HOLD BACK 10%-20% until the Project is 100% complete.
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JOBSITE PROGRESS
Sample Punchlist Inspection List
FINAL INSPECTION BEFORE PUNCHLIST
INSPECTION
Acceptable
ELECTRIC
All outlets and switches work, plates are straight and level
Check for backcharge if drywall or plaster was damages
All outlet plates installed tight to walls
Panel labeled for new circuits
All lights have bulbs
Batteries in smoke detectors to assure working condition
Final Inspection Completed
PLUMBING
All fixtures work, no chips in ceramic or tile
Check for water damage to walls
Fixtures secure on walls or doors
Ice maker connected, air gap for dishwasher installed
Caulking is acceptable
Aerators and escutcheon plates are installed
Gas connections work properly
Disposal installed correctly and works properly
Drains clear and working
Water pressure adequate
Toilets acceptable and working properly. Tight to floor
Final Inspection Completed
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Not complete
INSPECTION
Acceptable
HVAC
Diffusers are installed and working, return grill installed
System is operable, thermostat properly installed
Condensation line for A/C installed
Flue is installed
Humidifier installed, proper sizing
Final Inspection Completed
CARPENTRY
Trim installed properly; enough screws
Counter tip screwed down
Built-in units complete and acceptable
All finish hardware, special items installed and working
Door stops, strikes locks and knobs correct
Window locks, fireplace units, and other accessories correct
Decks completed correct and structurally sound
Exterior weather-tight, flashing, caulk, weather strips
Door hinged on correct side, smooth movements
Shelves, closet poles installed and level
Properly sanded, smooth, ready for paint
New roof installation checked, flashing installed properly
Downspouts, splashblocks, soffit vents installed
Fans working
Final Inspection Completed
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Not complete
INSPECTION
Acceptable
Not complete
FINISH FLOOR
Grout cleaned from tile
Mastic cleaned from sheet goods or VAT
Flash-patch for carpet
Thresholds installed as needed
Shoe molding, vinyl cove installed
Check for stains on carpet
Check for puncture hole in vinyl
Final Inspection Completed
GENERAL
Cleaned as agreed, vacuumed or swept free of dirt and debris
Windows, newly installed glass cleaned, screens installed
Trash removed per agreement
Countertops cleaned
All subs have cleaned up and removed their debris
Yard restored, fences replaced, landscaping corrected
Final Inspection Completed
Comments_____________________________________________________________________
_____________________________________________________________________________
____________________________________
(Signature Home Owner)
___________________
Date
____________________________________
(Signature Contractor)
____________________
Date
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Jobsite Progress
Sample Pre-completion Punchlist Form
SAMPLE PRE-COMPLETION PUNCHLIST FORM
WEE BEE CONTRACTORS
123 Nail Dr.
Anytown, GA 11111
Quality Control
Pre-Completion Punchlist
Owner______________________________
Job Location
Address_____________________________
________________________________
________________________________
Telephone____________________________
_
____________________________________ _____________________________________
Submitted by Inspector
Date
__________________________________________
Contractor
Date
Owner
Date
____________________________________________
Owner
Date
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