Builder Contracts and Paying Money

Builder - There is a perception among the general public that a builder will say and do all the right things to get hired for a job and once the work has been started, good luck finding them actually working on the job. A bid for work that was estimated to take two weeks to complete is dragged out for several months, and if you have already paid the contractor, you may never see him again.

This kind of horror story does occur but very occasionally. Most builders are top grade professionals who work very hard to complete a job on time and on budget. That being said, it is important to fully vet out a contractor before you contract with him (or her) and to make sure your contract and payment arrangements are clearly spelled out.

Part of that vetting process goes beyond simply asking a buddy who he (or she) knows that has worked on their house. More times than naught, you won’t get burned, but why gamble when there are some excellent resources available to make sure the pro you are hiring is really a pro.

Trade associations such as the National Builders Association maintain information on the builders who are part of their trade. A qualified contractor must maintain all licenses and liability insurance and feedback from previous clients is kept in a database so that the association can provide constructive criticism to help a contractor perfect his (or her) craft. They also provide a mediation service should an issue arrive. In the contract you put together with you newly hired contractor, you will want it to clearly state all of the responsibilities of both parties: the builder and you. Issues such as performance deadlines, change orders, material selections, maintaining proper insurance and lavatories needs to be spelled out. You will want to agree on a timescale for payments to the contractor. The contractor will most certainly have sub-contractors employed, and most contractors do not have the resources to cover payments to his (or her) subs. Pay your contractor directly. Do not pay any subs. Your contract is not with them. Get a receipt each time you make a payment and be prepared to pony up a deposit around 20 to 30 percent of the total job to get the work started.

Once the job is complete, you will want to do a final walk through with the builder and test as much of the work as you can. Your builder should warranty his (or her) work for a year. If everything meets your expectations, you should pay the contractor right away. Don’t make the contractor wait thirty days for final payment. This puts a burden on payroll and his (or her) relationship with his subcontractors.Know more about National Builders Association and Builders.