What Paperwork Should My Contractor Provide?

What should I request from a contractor?

20 Questions to Ask Contractors Before HiringQuestion #1: How long have you been working in this industry.

Question #2: Are you licensed.

Question #3: Do you carry workman’s comp insurance for your employees.

Question #4: Do you have insurance in case something in my home gets broken in the renovation and/or construction process?More items….

What is the purpose of a general contractor?

A general contractor is responsible for providing all of the material, labor, equipment (such as engineering vehicles and tools) and services necessary for the construction of the project. A general contractor often hires specialized subcontractors to perform all or portions of the construction work.

How much do contractors ask for upfront?

Payment Schedule In Your Contract Before any work begins, a contractor will ask a homeowner to secure the job with a down payment. It shouldn’t be more than 10-20 percent of the total cost of the job. Homeowners should never pay a contractor more than 10-20% before they’ve even stepped foot in their home.

How much do general contractors charge per hour?

General contractor hourly rates The average hourly rate to hire your own general contractor is about $50 per hour. However, general contractor rates can range from $30 to $85 per hour, depending on the type of project and where you live.

Can a contractor charge more than the quote?

Getting a quote. A quote is an offer to do a job for an exact price. Once you accept a quote, the contractor can’t charge you more than the agreed price unless you agree to extra work, or the scope of the job changes while it is underway. Legally, this is known as a variation to your contract.

What proof of insurance should a contractor have?

Contractors and carpenters should have a general liability policy or CGL that is designed for their field of work. Professionals such as CPAs and consultants should carry professional liability insurance, which includes errors and omissions coverage. Hired workers should also carry workers’ compensation insurance.

What should I expect from a general contractor?

A general contractor is a type of manager who is in charge of overseeing the entirety of a project. For a home remodeling job, the GC will meet with the homeowner to go over the initial project details, estimate the cost of the project, draft a contract, hire workers and handle the daily operation of the job.

What should you not say to a contractor?

8 Things You Should Never Say to a Contractor’I’m not in a hurry’ … ‘I know a great roofer/electrician/cabinet installer!’ … ‘We had no idea this would be so expensive’ … ‘Why can’t you work during the thunderstorm/snow/heat wave?’ … ‘I’ll buy my own materials’ … ‘I can’t pay you today. … ‘I’ll pay upfront’ … ‘I’m old school.

What are the duties of a contractor?

Contractor Responsibilities:Hiring specialized subcontractors if necessary.Ensuring safety regulations are followed on site at all times.Advising clients.Making sure the sites are secure.Managing work teams, materials and equipment.Inspecting the quality of work done by employed workers and subcontractors.More items…•

Is it worth hiring a general contractor?

Serving as your own general contractor for a major remodeling or building project can potentially save you tens of thousands of dollars. But this savings comes with a notable cost in terms of stress, time managment, and perhaps even the quality of the work.

What is the markup for a general contractor?

Ranging from 10 to 30 percent or possibly more, markups are often loosely described as covering overhead and profit, although they cover a wide range of costs that contractors incur while doing business.

How do I protect myself when hiring a contractor?

Some other best practices to keep in mind as you finalize a written agreement:Make sure the contractor obtains a permit if the job requires one. … Ask for a copy of the contractor’s license and proof of insurance. … Pay by check and get a receipt. … Document any changes to the contract in writing.More items…

What does it mean for a contractor to be licensed and insured?

In the context of a business claiming to be licensed, bonded, and insured, it usually means that the business has purchased some of the most traditional insurance policies that just about every business needs, such as worker’s comp and general liability insurance policies.

Should you pay contractor before work is done?

A: It’s not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag. … I recommend tying payments to progress made during the job.

Why are contractors unreliable?

They know how to do the work, but they often get no help on how to actually run a business. There is also a shortage of contractors who will take remodel work in most areas (tradespeople in general, actually) so they can jerk customers around and still get work.

Can you sue a contractor for poor workmanship?

Breach. You must show that the party you plan to sue failed to meet his or her contractual obligations (“breach of contract” in legalese). This is usually the heart of the case — you’ll need to prove that the contractor failed to do agreed-on work or did work of unacceptably poor quality. Damages.

How should contractors be paid?

The Simple Reason You Should Always Pay Your Contractor By Credit CardStagger your payments. Even the simplest home improvement project could take weeks or months to complete. … Ask about fees. … Debit and credit are not created equally. … Checks rein supreme. … DON’T pay in cash.

How do you tell if a contractor is bonded?

Most suppliers and subcontractors will only work with a contractor who has a bond in place. To determine whether your contractor is bonded, ask him or her for a bond number and certification. You should take extra precautions to ensure that both the bond and the license are up to date.

What is a reasonable deposit for a contractor?

Contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less. * (This applies to any home improvement project, including swimming pools.) Stick to your schedule of payments and don’t let payments get ahead of the completed work.

Can I act as my own general contractor?

Many states and municipalities require that general contractors be licensed and properly insured before they can legally hang out a shingle identifying themselves as GCs. However, no such requirements exist for the homeowner acting as his own GC.

How do you tell a contractor they are no longer needed?

If the contractor did not meet the needs to your satisfaction, simply call and thank them for their time but your are declining their estimate and that you are using another contractor. Personally it is always great to know how we as a contractor could have done better to obtain the trust and job of a customer.