Is My Remodel General Contractor Going to Run Away With My Money?
I am sure we’ve all heard this classic/horror story. A homeowner calls a “remodel GC (General Contractor)” to their home to quote a price for a kitchen rehab. The GC quotes a price and asks for X amount up front. No contract is signed, and the requested upfront payment is issued. A few days go by, and the homeowner has not heard from the GC. A couple of weeks go by… nothing. It’s almost as if the GC was never even planning to do the project…?
Today we want to give you guys a few tips so that you are never in this horrible situation that is all too common!
Remodel General Contractor Must Do’s
Ask for referrals. This GC should be able to provide you with, at the VERY least, one or two referrals for people he’s remodeled for in the past. Don’t hand this GC a dime until you have actually contacted these referrals to verify that this GC is reputable. Ask for photos of his work to see if you are pleased with his finished product.
Does the GC have an online presence? Are they on social media, and do they have a website? If the GC has an online presence, they will be majorly incentivized to behave honestly and do quality work – knowing that you as the homeowner could leave a dissatisfied review online.
Sign a contract. Once you’ve done your due diligence to make sure that this GC has established some level of credibility, the next step would be to sign a contract. The GC often has a contract of their own for you to sign. If not, there are countless websites that offer contracts you can purchase (or even download for free). This contract MUST dictate payment terms. If both parties agree, it is perfectly normal for a percentage of the contract cost to be paid upfront – just make sure you have this in writing! It is imperative that the contract stipulates exactly what work will be performed for exactly what amount. Leave nothing to ambiguity. Is the homeowner or the GC buying the appliances? It should say that. How tall is the new kitchen backsplash? It should say that. How long will the project take, and will there be any penalties for late completion? It should say that.
Document everything along the way. Make sure to keep records of all payments. After every payment, have the GC sign a lien waiver as evidence that they have been paid. If conversations were had on the job site about changes in plans, email the GC afterward in writing for confirmation.
Don’t let the horror stories scare you off from a remodel, but do armor yourself with the knowledge to protect against such an experience. As always, we’re here for your peace of mind!
