Ask Your Contractor These 14 Questions

Is the contractor licensed? Does the work require a permit and inspections? Is the contractor insured and bonded? What kind of warranty will the contractor provide? Have there been any complaints lodged with the CCB? What will the contract contain? What hours will the workmen be on the job? How will change orders be handled? Will a lower price mean lower quality? How does the contractor want to be paid? References? What about Mechanics Lien Notices? What about lead paint & asbestos in my remodeling project? What trade associations does the contractor belong to?

1. Is the contractor licensed? Registration is required for any business or individual that advertises, offers, bids, arranges for, or actually does any construction, alteration, remodeling or repair work. This includes painting, roofing, carpentry, siding, plumbing, electrical, floor covering, land development, concrete, inspection services, heating and air-conditioning, tree service, new construction cleanup, as well as most other construction and repair services. You should ask to see a current registration card. Illegal contractors will deceive you and say they're registered or perhaps even show you a business card with an invalid registration number. You should call the State of Oregon Construction Contractors Board (CCB) at 503-378-4621 EXT. 4900 to make sure the registration is active. Many municipalities require a special city business license. These municipalities are Yachats, Waldport, Newport, Toledo, Depoe Bay, and Lincoln City.

2. Does the work require a permit and inspections? Construction of new homes and many home improvements require building permits from the local building department. Usually contractors obtain the permits because they know what permits are required. But ultimately, the owner is responsible for making sure the required permits are obtained. And be sure the building department does a final inspection when the work is completed.

3. Is the contractor insured and bonded? Registration is not an endorsement of the quality of work. It is some financial protection for you, the customer. Registration does ensure that your contractor has a surety bond and liability and property damage insurance. both offer some financial protection if problems develop later. It is your responsibility to check and verify these are in place. Ask your contractor to provide you with a "Certificates of Insurance" directly from the insurance and bond providers. And ask the CCB if the registration allows employees. A registration allowing employees means the contractor has workers' compensation insurance coverage. This is important to you as the owner of the property, if a worker is injured on your job, this insurance will help prevent a workers' comp claim from being filed against you.

4. What kind of warranty will the contractor provide? The State of Oregon requires a one year warranty from the date of substantial completion. However, you may want to talk with your contractor about an extended warranty program. These usually come at an additional cost, but can offer advantages for both you and your contractor.

5. Have there been any complaints lodged with the CCB? Check with the CCB regarding any open claims. Don't be concerned if a high-volume business has some claims. What's more important is how the contractor resolves its disputes. In addition, you may want to check with the Better Business Bureau at 1-800-488-4255 and the Lincoln County Home Builders Association at 1-800-465-2840.

6. What will the contract contain? Always have a written contract, and within this contract must be the total price, a payment schedule, a starting date, a complete date, warrantees and standards of workmanship, the contractor's CCB number, a detailed list of what the contractor will and won't do, list of permits, list of "allowances" list of materials, and a lien notice.

7. What hours will the workmen be on the job? In a remodel project, especially one you will be living in during the course of the construction, you may wish to formalize the work hours for your own peace of mind. In a new construction or remodel, there may even be codes, covenants and restrictions specific to your neighborhood that my control times when work is allowed.

8. How will change orders be handled? People change their minds during the course of a construction project. For your protection, we strongly recommend that when changes are made, the additional cost and length of the job be documented in a written change order and signed by both the owner and the contractor. The change order will become part of the original contract and, thereby, governed by the terms of that contract.

9. Will a lower price mean lower quality? The old saying, "you get what you pay for" applies here. A higher bid may be worth the price in better materials, workmanship and reliability. If you get a very low bid, the contractor may have made a mistake or forgotten to bid everything you wanted. Or they may have deliberately under-estimated just to get the work, knowing they can't give you what you want at the quoted price and will then add on extra charges. If they bid too low to make a profit, they may take shortcuts and use cheaper materials, and when things start to fall apart, they will not be there when you need them. A large number of CCB claims filed against contractors are the result of homeowners taking the lowest bid and then being unhappy with the resulting low quality work.

10. How does the contractor want to be paid? To start with, never, ever give anyone more than 30% of the total contract price as an up-front deposit. Legitimate contractors are entitled to a sizable down payment-- a third to a forth is common. Then, it's important not to let the payments get ahead of the work completed. Consider having your payments released in stages as the work progresses and perhaps having an inspection by a third party such as the County or City Building Department, a realtor or even your attorney.

11. References? Always get references and always follow them up. Check with previous customers. Were they satisfied with the work? Was the work finished? Did the contractor keep to the agreed schedule? Did the contractor return phone calls? Ask for the name of a customer your contractor had problems with -- how the contractor responded to complaints and handles problems is very important. And personally inspect some of the builder's completed work. Also, you can call the Dept. of Justice Consumer Information Hotline at 503-378-4320 for information about any previous consumer complaints. You may also want to talk with the contractor's bank, subs and suppliers regarding the builder's financial stability.

12. What about Mechanics Lien Notices? Homeowners are ultimately responsible for payments to subcontractors and suppliers even if they have paid the general contractor in full. Do not allow construction to begin until your contractor gives you a copy of the Information Notice to Owners About Construction Liens. This tells about liens and how to protect yourself. Read it carefully and follow its advice.

13. What about lead paint & asbestos in my remodeling project? Lead paint and asbestos have become very large problems in commercial and public buildings and to a lessor degree in the older homes of our community. With both these substances we are looking to limit the exposure by sealing or encapsulation in place, or in extreme cases by careful removal and disposal of the hazardous materials. Another important issue is proper notification. As of June 1, 1999, all contractors involved in the renovation of a home built before 1978 must provide owners and occupants the EPA pamphlet "Protect Your Family From Lead in Your Home" and obtain a signed statement from the recipient indicating receipt. Failure to do so is not only a crime, but also a measure of the contractor's professionalism and his willingness to protect you and your family from very serious harm.

14. What trade associations does the contractor belong to? Home building and remodeling is professional work. Membership and participation in a professional association is a very good sign that the contractor recognizes the responsibilities of being a professional. Call the Lincoln County Home Builders Association at 1-800-465-2840 for a list of member professionals.

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Whitlock Construction . 636 Highway 20 . P.O. Box 850 . Newport OR . 97365 License # 83192 . (541) 265-7975 . john@whitlockconstruction.com

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