Q-My contractor has asked to get paid in three installments, one-third at each time. Is this fair for both myself and my contractor?
A-Not necessarily. The best way to pay your contractor is to make agreeable periodic payments based upon the amount of work he has completed. Do not pay for work that hasn’t been performed.
Before your job begins, you must obtain from your contractor a breakdown of the costs of your job. This breakdown will list each phase of the project (demolition, rough carpentry, electric, drywall, contractor’s profit and overhead, etc.). When your contractor submits a bill to you, he must list each category and the amount of work completed for each item. You must verify if it is accurate. Make sure that he is not asking for too much money in any one category.
The contractor is entitled to collect a portion of his overhead and profit at each billing. However, he should only receive an amount in proportion to the percentage of the job that is complete. You should always hold back a portion of the profit until the entire job is complete.
Remember, you must always have enough money in your possession to finish all uncompleted tasks as well as a proportional amount of the contractor’s profit and overhead. This arrangement is fair to both parties.
Plans are a must
Q-My husband and I want to remodel our kitchen. We would like to relocate the sink, install a larger window, new cabinets, etc. Do we really need plans or can we just tell our contractor what we want?
A-You need plans. Every successful project has a plan. A plan can be a highly detailed set of blueprints or a simple set of written instructions accompanied by some simple sketches. A well thought-out and detailed plan verifies that what you want to do is possible. This is a vital step in the building process that is frequently overlooked.
Countless projects have been started without a plan only to find out that what you or the contractor wanted to do is not possible. When this happens, you generally get stuck with paying for the mistake.
A realistic budget
Q-I only have so much money to spend on my project. Before I have plans drawn, how do I know if my budget is realistic?
A-You can determine if your budget is realistic in several different ways. You can ask an architect to consult on your ideas. He will sometimes do a preliminary visit at no charge. The architect usually can tell you what a project might cost.
You should also invite two contractors to speak to you concerning your project. Tell them what you want. They should be willing to give you a preliminary estimate at no charge.
To be safe, always add 20 to 25 percent to these preliminary estimates. You must realize that the architect and the contractors are guesstimating.
