Tips on How to Choose a Contractor

BUSINESS/CONSUMER SERVICES Tips on How to Choose a Contractor

The weather is warming up and there are fewer reasons to put off those roof repairs or home renovations. If you choose to hire a contractor to do the work, you can avoid potential problems by doing a little research and making sure you choose a reputable one.

"Before the first nail is hammered, check references," says Greg Mitchell from the Department of Business and Consumer Services.

Local building inspectors, the Canadian Home Builders Association, Better Business Bureau, developers and previous customers are all good sources, says Mr. Mitchell. Consumers can also check with the consumer relations division of the Department of Business and Consumer Services.

Comparing prices is always a good idea before buying anything, and this is also true with contractors. Mr. Mitchell suggests consumers receive at least three estimates in writing and ask some key questions. Ask about the contractor's policy on guarantees. Ask the contractor to provide a sample guarantee and contract. Read it carefully. Subcontractors in certain trades are not required to be certified by the province. In these circumstances, ask the contractor for the names and contact information of other customers and talk to them about their satisfaction level.

Once you have narrowed the list down to three possible contractors, provide a list of the work you want done. Show them the site and walk through the project with them. Make sure all quotes are based on exactly the same job. Along with the technical part of the job, talk about start and completion dates, as well as acceptable work hours.

Once you have chosen a contractor, a written contract should be negotiated between you and the contractor. A specific, well- written contract can make clear who is responsible for what and can protect both you and the contractor. It should include the following: how much you will pay in advance; the total cost and the method of payment; the start and completion dates; a financial penalty for each day the contractor works after the ending date (optional); the materials you want used; all of the work that is to be included in the price; who will get any necessary building permits; insurance coverage; and who is in charge of clean up.

While many contractors have developed a contract for this purpose, it can be amended to include any of the above items with the contractor's agreement. If one doesn't exist, you can develop it yourself. If appropriate, you should have your lawyer review the contract. Review the contract carefully before signing. Both you and your contractor should sign the contract and you should both have a copy.

Contracts for large jobs should involve instalment payments to be made as each phase of work is completed. Do not make the final payment until all work is completed. Hold back 10 per cent of the total value of work, service and materials for 45 days after the work is finished. This holdback allows you to protect yourself in the event your contractor runs into financial difficulty. Under the Mechanic's Lien Act, you have a responsibility to the sub- contractors and suppliers who provide labour and materials. If these people have not been paid (either by you or the contractor), they may place a lien on your home. If you hold back 10 per cent, this will be the limit of your liability to unpaid subcontractors. Subcontractors can place liens without notifying you, so before paying any money, check the Registry of Deeds for liens against your home.

You will also want to make sure that subcontractors such as bricklayers, electricians, plumbers, refrigeration technicians and oil burner mechanics are certified by the province of Nova Scotia. Check with the Department of Education's apprenticeship and training division to see if the contractor you're thinking of hiring is certified.

Changes will most certainly be made before the job is finished. These changes should never be made without the written approval of the homeowner and the contractor. The precise changes, the cost increase or decrease and any additional time added to the job should also be outlined.

If you have questions or concerns regarding contractors, please call us at the Nova Scotia Department of Business and Consumer Services at 902-424-5200 or 1-800-670-4357.

NOTE TO EDITORS: This item is part of a feature series entitled Consumer Savvy. It is produced by the Department of Business and Consumer Services. Today's article is the fourth in a series on consumer issues and deals with hiring contractors. The Consumer Savvy logo is available for use by print media by calling Robyn McIsaac at 902-424-2933.