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Do:
q 1. Plan your project
carefully.
q 2. Shop around
before hiring a contractor.
q 3. Get at least
three written bids on your project.
q 4. Provide
contractors from whom you request bids with accurate plans for drawings that will enable
them to determine the scope and cost of the work.
q 5. Check with
the Contractors State License Board to see if a contractor is properly licensed.
q 6. Check out
contractors with your local building department, trade associations or unions, consumer
protection agency, and the Better Business Bureau.
q 7. Look at work
the contractor has completed.
q 8. Ask your
contractor to furnish a completion or contract bond.
q 9. Consult with
more than one lending institution regarding the type of loan to obtain.
q 10. Ask your
lender to recommend a funding control company.
q 11. Make sure
your contract provides for a retention.
q 12. Make sure
everything you and your contractor have agreed to, is included in your contract.
q 13. Ask your
contractor about inconveniences that may occur, and plan accordingly.
q 14. Keep a job
file.
q 15. Make sure
you receive lien releases from subcontractors and material suppliers.
q 16. Make
frequent inspections of the work, including a final walk-through.
q 17. Consult an
attorney if a mechanic's hen is filed against your property.
q 18. If problems
or disagreements occur, try first to negotiate with the contractor.
Do Not:
q 1. Hire an unlicensed
contractor.
q 2. Hire a
contractor without first shopping around.
q 3. Act as an
owner-builder unless you are very experienced in construction.
q 4. Sign
anything until you completely understand it and agree to the terms.
q 5. Make
agreements with subcontractors or workers without consulting the prime contractor.
q 6. Ever pay
cash, without proper receipt.
q 7. Make a down
payment without checking with your lender or the Contractors State License Board to make
sure it does not exceed the legal limit.
q 8. Let your
payments get ahead of the contractors completed work.
q 9. Hesitate to
ask questions of the contractor.
q 10. Make final
payment until you are satisfied with the job.
10. Make final
payment until you are satisfied with the job.
Be sure your contract includes:
q 1. The contractor's
name, address, and license number and the name and registration number of any salesperson
who solicited or negotiated the contract.
q 2. The
approximate dates (not number of working days) when the work will begin and be
substantially completed.
q 3. A
description of the work to be done, a description of the materials and equipment to be
used or installed, and the price for the work.
q 4. A schedule
of payments showing the amount of each payment in dollars and cents.
q 5. If the
payment schedule contained in the contract provides for a down payment, it shall not
exceed $1,000 or 10 percent of the contract price, excluding finance charges, whichever is
less. If the contract provides for the contractor to furnish performance and payment
bonds, lien and completion bonds, a bond equivalent, or a funding control, this limitation
of down payment does not apply
q 6. A Notice To
Owner regarding the state's lien laws, and the rights and responsibilities of an owner of
property.
q 7. A
description of what constitutes substantial commencement of work.
q 8. A notice
that the failure of the contractor, without lawful excuse, to substantially commence work
within 20 days from the approximate date specified in the contract when work is to begin
is a violation of the Contractors License Law.
Finally
 For more information about contractors, license
status, disciplinary actions against contractors and the Contractors State License Board,
call the CSLB's toll-free, automated phone response system, 1-800-321-CSLB.
Before you begin your project with a contractor, you may wish to consult
additional information resources. The Consumers Resource Handbook put out by the federal
government offers general information on making purchases and resolving complaints. To
obtain free single copies, write to: Handbook, the Consumer Information Center, Pueblo, CO
81009.
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