Sunshine and Warmer Weather: A Perfect Time for Home Improvements

I recieved the article below from the CCB this week.  Wanted to pass it along. Remember regardless of wether you are doing a home house remodel, painting your house or replacing the front door the HBA PRO is the best place to find a professional in the Portland Meto Area.

As the days start to stretch out longer and the sun shows up more and more, homeowners often begin thinking about making improvements to their home.

Maybe it’s a deck, a fence, reroofing or painting the house.

Even in a tough economy, many homeowners still want to make improvements to their best investment: their home. But a tough economy can mean more scams or better bargains.

On one hand when money is tight, lots of people tend to look for bargains. On the other hand prices for home improvements may be the best we’ve seen as contractors look for those spring customers. This can be a good thing, but the CCB realizes that it could also be a perfect storm for the unscrupulous “so-called” contractor.

“This is a good time to remind homeowners about the importance of taking a few minutes to check the contractor’s license with the Construction Contractors Board (CCB),” says CCB Administrator Craig Smith. “The contractor’s information is available on the CCB website or by calling the agency.”

An active license ensures that the contractor is bonded. Contractors are also required to maintain liability insurance. The programs of the CCB serve to hold contractors accountable for their business practices.

The agency warns homeowners to be careful about using online services like Craig’s list where many consumers report finding unlicensed contractors offering to perform low cost home improvements. Door-to-door solicitation is another red-flag area.

These “deals” may look good, but can lead to poor quality work, or worse. The CCB stresses to homeowners that the lowest price may not always be the best option. You may be getting lower quality materials, less skill and experience, “corners cut”, or a scammer. And if an offer seems too good to be true (like left-over materials at a really low price), it usually is.

“It is important to do some homework,” says Smith. “Compare pricing. Understand what you are getting and who you are getting for your hard-earned money. Don’t be pressured into a quick deal. And check the contractor’s license. After all, your home may be the biggest investment you have.”

Though most projects are successful and homeowners are happy with the work, when problems occur with an unlicensed contractor, it usually means a homeowner is left with an incomplete job or a job poorly done. The few minutes it takes to look up a contractor beforehand can save a lot of grief later.

The CCB is a state agency licensing more than 44,000 contractors. Anyone who is paid to arrange, repair, improve or build a home must be licensed by the CCB. Consumers can verify a contractor’s license and find information for successful projects by clicking on the Consumer Help Page at www.oregon.gov/CCB or by calling 503-378-4621.

Top 10 Traits of a Professional Remodelers

   1. Your first phone call is returned within 24 hours.
   2. He shows up on time for the initial interview/consultation.
   3. He tells you when he will get back to you with a proposal, and he does it.
   4. The contract price is well-documented.
   5. The supervisor and work crews are all respectful of your home and privacy.
   6. Workers seem confident and sure of what they are doing.
   7. Workers are clear in explaining their work.
   8. The project moves along on a predictable schedule.
   9. Problems are dealt with in a forthright and honorable manner.
  10. The finished product is smashing

Remodeling Dollars and Cents

In today’s market place no consumer should tolerate anything less than top notch contractor performance. You would expect no less from any other professional services provider – your doctor, your lawyer or your financial advisor. Why should you expect any less from the company that will literally cut into your most valuable investment and your most important personal statement – your home?

That said, be prepared to pay for this kind of professionalism. Businesses that run professionally are profitable. That is how they stay around year after year to serve their clientele, and why, for most well-established contractors, repeat business is 80% of the business they do every year.

Think Twice Before You Remodel Yourself

Despite the popularity of home remodeling do-it-yourself (DIY) television shows, home owners should think twice before tackling a large remodeling project by themselves, cautions the National Association of Home Builders (NAHB) Remodelers. According to the U.S. Census Bureau, home owner DIY projects account for 20 percent of all remodeling, and industry experts say that between 25 percent and 30 percent of their work comes from fixing DIY disasters.

“With the popularity of all of these shows dedicated to projects that home owners can do themselves, it is important that home owners understand that these shows hire professionals to do the work and make it look easy,” says former Remodelers Chairman Don Novak, CGR, CAPS, CGB of Novak Construction Co., Cedar Rapids, Iowa. “Embarking on a home project without the needed planning and expertise can be very expensive and can have a negative effect on home equity.”

While a motivated and skilled DIYer may do a remodel as well as a professional remodeler, you should ask yourself these questions first:

• Have you ever done this before?
• How much money will you really save? (To get a true sense of actual costs of a project, take what you think it will cost in time and money and multiply by three.)
• Will you know what to do when something goes wrong?

If you are willing to put the time and energy into a do-it-yourself home remodel, the NAHB Remodelers advises:

• Follow product directions;
• Get a detailed, illustrated home repair and maintenance book;
• Do very careful and thorough preparation: Set everything up and protect surrounding surfaces;
• Practice with the tools; and
• Follow safety procedures and use proper safety equipment.

While careful attention to detail and directions can help a DIYer with a successful remodel, the NAHB Remodelers warns against non-professionals attempting certain jobs because of the damage and life-threatening risk these projects can create. Think three times about these projects:

• Electrical – unless you are a licensed electrician do not attempt to rewire your home. If done improperly you can burn down your house.
• Structural Changes – removing or adding any walls or cutting holes into the roof can compromise the structural integrity of your home and leave you with a really big hole in your roof.
• Plumbing – moving or adding pipes incorrectly can create a swimming pool in your home.

Remember, DIY should be fun. If you don’t see it as fun then DDIY (don’t do it yourself), hire a professional.

Learn Technical Terms

Before studying contracts or talking to professional designers, builders, or subcontractors, you may want to bone up on certain terms that are used widely in the construction industry. Here’s a sampling:

Broom Clean
A legal term that specifies removal of all construction debris from the job site upon completion of the project, including sawdust, packing materials, and leftover construction materials.

Allowance
The standard amount (usually a middle-market figure) that a contractor includes in his or her cost estimate for items that are to be purchased directly by the homeowner (example: lighting fixture allowance).

Structural
A term used to identify any element that is load-bearing, such as a wall, column, or beam. (Some elements that appear to be structural may be decorative.)

Punch List
Items noted by a contractor during his or her final walk-through of the project that need attention before the job can be officially completed.

Rough-In
The first stage of installing a system, such as plumbing or electrical wiring, after rough carpentry is completed.

Trim-Out
The final stage of installing a system, after interior finishes are completed. Trim-out includes installing fixtures and fittings and mounting cover plates and decorative trim.

Wet Wall
The wall that houses the main water pipes and waste line for a home’s plumbing system.

From RemodelingCenter.com

Four Essentials to Ask References

1. What were the contractor’s work habits? Did he show up on time and prepared to supervise the subs?
2. Did he stick to the scope of the work and cleanup plan as outlined in the contract? Were any unauthorized changes of materials or details made?
3. Did your project stay on or close to budget? Did materials arrive on time? Did he keep you up to date on his progress or potential delays?
4. Did anything go wrong? And if so, how — and how quickly — was the crisis resolved?

Don’t Fall for These Contractor Lines

Article by Mark Steffen from This Old House magazine

1. “This offer expires today.”
Most bids are good for 30 days so clients can mull over decisions and get loans.

2. “I’ll give you a price just from looking.”
Bids come in writing, and only after careful inspection. If you don’t know what the bid is based on, how can you negotiate a better deal?

3. “I don’t give out contact information for past customers.”
A good contractor is happy to provide references. Just be sure to follow up and confirm that those clients are satisfied with the work.

4. “A simple handshake will do.”
Get it in writing. A contract protects both you and your contractor should something go wrong.

5. “I’ll cut you a deal if you pay with cash.”
A contractor can reduce his rate by not reporting your payment as income and, therefore, by not paying taxes. This is fraud.

6. “You’ll have to get the work permits.”
A contractor who can’t get permits for a job probably isn’t licensed in your area, or his license was revoked.

Three R’s of Keeping the Crew Happy

1. Refreshments: You don’t have to cater three squares a day, but at least offer a thermos of coffee or a cooler with soft drinks. They’ll appreciate it.
2. Responsibility: The crew can’t work efficiently if you’re in the way. Ask questions, but don’t overwhelm them. And teach kids and pets the meaning of KEEP OUT.
3. Respect: Say good morning, good night, and good job when appropriate. And, please: Don’t ask if they’ve met any desperate housewives lately.

Actions to Take When Hiring a Contractor

Oregon law requires contractors to provide the homeowner with a consumer protection notice at the time of contract, for work on a residential structure. This notice explains licensing standards, bond and insurance requirements, and steps that consumers can take to help their construction project run smoothly.  See infomation from the Consumer Protection Notice below….

1. Make sure your contractor is properly licensed before you sign a contract. Visit www.oregon.gov/ccb, and click on the link, Check on a Contractor’s License. To be licensed in Oregon, contractors or employees who exercise supervisory authority over construction activities, must take training and pass a test on business practices and law. Licensing is not a guarantee of the contractor’s work.
   • A license also requires the contractor to have a surety bond and liability insurance – Depending on license category, the CCB surety bond provides from $5,000 to $20,000 coverage if the contractor is ordered to pay damages in contract disputes. Insurance coverage provides from $100,000 to $500,000 in general liability for property damage and bodily injury caused by the contractor.
   • If your contractor is not licensed – the CCB bond and dispute resolution services will not be available to you.
2. What you should know about bids, contracts, and change orders: GET IT IN WRITING! Always get bids, the contract, and any changes to the contract in writing. Make sure the contractor name, CCB number, and contact information are included on any written documents related to your project.
   • Bids – Do not automatically accept the lowest bid – A low bid may make it necessary for the con-tractor to use lower quality materials and to cut corners in workmanship.
   • Contracts and Change Orders – Always get it in writing. Your contractor is required to provide a written contract if the contract price is more than $2000. The CCB recommends that all contracts be in writing.
   • Make sure the contractor’s name, CCB number, and contact information is included in the contract.
   • For your protection – Contracts should be as detailed as possible. Some items to include are materials and costs, permits, estimated start and completion dates, debris removal, and arbitration clauses.
   • Read and understand your contract before signing it – Don’t be pressured into signing your contract without taking the time needed to go through it. Make sure it includes enough details to avoid misunderstandings and to protect you and your property.
3. Additional contract information you should know:
   • A Payment Schedule – should be included in the contract. Stick to the schedule and never pay in full for a project before the work is complete.
   • Special Note on Liens – Subcontractors and material suppliers that work on your project are often paid by the general contractor. If a general contractor fails to pay, the subcontractor may file a lien on your property. For information on construction liens, visit the CCB’s Consumer Help Page at www.oregon.gov/ccb, or contact an attorney.
4. If you should have a problem with your contractor – You can file a complaint with the CCB against a licensed contractor within one year of the substantial completion of work on your project. Contact the CCB office at 503-378-4621 for help.

What is a Construction Lien?

A “Lien” is a claim for payment against your property.  Under Oregon and Washington laws, those who work on your property or provide materials and are not paid have a right to place a construction lien against your property.  You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full.

If you receive a notice to enforce a lien, the the notice seriously.  Let your contractor know you have received the notice.  Find out what arrangements are being made to pay the sender of the notice.  Prior to making final payment on your project, have a “Lien Release” form completed by each of the contractors and material suppliers.

For more information see this article recently published in the Daily Journal of Commerce: 5 Questions Owners Should Ask About Liens