Some For The Error But Here Is The May Newsletter from Paul J Da Costa and Associates INC

This month I want to spend some time talking about using contractors and sub contractors. All of us have used contractors and most of the time we have had only minor problems, if any at all. But how do you protect yourself from bad contractors and sub contractors?
Most of us ask for proof of insurance and unemployment insurance, and for references before we consider anyone. Make sure that the builder and subs have adequate coverage to handle a major lawsuit and long term injury recovery. You need to ask for the subs' insurance as well. Remember when it's all said and done you are responsible for what happens on your property. You need to make sure you have adequate insurance protection yourself. I suggest you call your insurance agent and evaluate your coverage to make sure you have your business well protected.
References are important but remember no one is going to give you names of people who won't give a glowing report. I have learned this the hard way. Now I ask for the names and contact information from their last 5 jobs, and all of the subs they used and could possibly use on my job.
I ask them the following questions:
For the home owner:

1.     Did the contractor show up for work on time?
2.    Did he finish the job on time? (no disrespect to the women, it's just easier to use 'he' )
3.    Was the work area clean?
4.    Was he professional?
5.    Did he give you proof of all sub contractors paid?
6.    Did he honor his warranty?
7.    Was the work completed within the agreed upon budget?

For the sub contractors:

8. How long have you been working with the contractor?
9. Does the contractor pay you on time: has he ever bounced checks to you?
10.Does he owe you money now?
11. When do you give your lien waiver?
12.How do you handle warranty issues?
13.Do you have insurance and workman's comp?

I have learned over the years that you need to keep a relationship with the subs just to make sure that all of them are getting paid. Too many times the owner only talks to the contractor and is unaware of sub contractors' problems. The subs may not contact you with a payment problem until 90 to 120 later. I know this for a fact, as this is how I became aware of problems.

I know you're thinking that if the contractor has given you a lien waiver that says he paid the subs, it's valid. But the contractor's signature means nothing; you must get the waiver directly from the sub. That's why keeping in touch with them is so important especially in this economy. It's hard to accept, but tough times bring out the worst in some people.

A final thought on dealing with contractors: Don't give all your work to one contractor. Have at least two if you are doing enough deals. This way you can use one or the other to cover something unexpected. Good luck and see you next month.......

Have a great month. Paul