instructions to verify that your contractor has a valid registration and contractor’s bond. The bond amounts are $6,000.00 for a specialty contractor and $12,000.00 for a general contractor. The contractor’s bond is your protection if things go awry. 2. Check to see if there are any outstanding lawsuits against the selected contractor’s bond. If so, DO NOT HIRE. 3. If your selected contractor does not have a valid registration and clean bond- DO NOT HIRE. 4. Use a contract which clearly defines essential terms such as scope of work, price and time of performance. Strongly suggest that you contact a lawyer for her review before signing the contract. There are specific contraction contracts which can greatly reduce your risks. HOMEOWNERS RIGHTS 5. NOTE TO CUSTOMER. Your contractor is required by law to provide you with a Notice to Customer. Failure to do so will prevent your contractor from exercising lien rights. However, do not ask your contractor for the notice. It is the contractor’s responsibility to protect herself. 6. PRE-CLAIM NOTICE. If your contractor hires subcontractors or suppliers, these individuals must provide you with a pre-claim notice. If they fail to provide this notice, they will loose their lien rights. PAYMENT PROTECTIONS 7. Joint Checks. If you know that your payment to the contractor includes payments to subcontractors or suppliers, make your check jointly payable to the contractors and sub/supplier. Example – Payable to DO GOOD CONSTRUCTION and BEST LUMBER SUPPLIER. The practice will guaranty that everyone is paid. 8. Lien Release. Always have your contractor sign a lien release when she is paid. This lien release can be in the form of a restrictive endorsement on the back of your check. Example – Endorsement of this check by DO GOOD CONSTRUCTION constitutes a full/partial lien release. WARNING if you pay for contractor and he does not pay the people he has hired YOU WILL BE OBLIGATED TO PAY TWICE. These few steps, if taken, should minimize or eliminate any problems you might encounter. |
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