Home Contractor vs. Homeowner

Insurance is an important issue when dealing with home improvement projects. Unfortunately, what is covered by insurance is frequently not clear until a problem arises, and then, it may be too late. On the homeowner side, it is important to make sure that your contractor carries workers' compensation insurance for his employees, or you may be subject to liability if a worker is injured on the job. You must ask for a copy of your contractor's certificate of insurance to make sure he is covered. You should also call your homeowner's policy and find out if there is anything special you need to do as a result of your improvement project. Ask what kind of scenarios are covered (generally something like water damage from the roof leaking is, but something due to a construction defect is not). Ask your broker if you need premises liability coverage, or if you need to increase the value of your insurance prior to completion of the work. I know of one contractor who insists that...

Another important provision in a home improvement contract is the list of materials to be used. This is an area in which both homeowners and contractors make assumptions that get them into trouble. Homeowners tend to assume that they are entitled to a level of materials that should be included. Contractors may cut back on materials in order to reduce costs, or may fail to inform homeowners that items may cost extra. There are two ways to handle this issue. Contractors may include allowances for materials in their contracts and then list additions as change orders. This gives the homeowner the most leeway. Conversely, the contractor can spell out the materials with very specific details that will not be misunderstood. Contractors may choose to protect themselves by putting in a clause that states that if the fee for materials goes up by more than 10%, that the homeowner will either have to compromise, or pay for a change order. The important point here is that both sides must mak...

In a recent meeting with a contractor, I learned about a wonderful resource for contractors. The Journal of Light Construction offers all kinds of advice in print, and online at http://www.jlconline.com/cgi-bin/jlconline.storefront . I have only had a glance at this site so far, but it has an enormous amount of useful information for contractors. I hope you will find this helpful.

This is going to be a series of posts about the elements of a good home improvement contract. I attended a lawyer dinner last night, and met another attorney who handles construction matters. He said, "the most important words in any construction contract are 'all change orders must be in writing." Not only should all change orders be in writing, but both the homeowner and contractor should sign off on them. Most of the cases we see arise from a misunderstanding about what is or is not included in the scope of a project. The more the parties communicate, the less likely it is that problems will occur. So, Rule #1 of home improvement contracts: put those change orders in writing!

by Kris Sawyer, President Redlands Construction As a general contractor, trade partners, often called subcontractors, who are part of our company team, are the life blood of our business. Without them there is no business. On the other hand, they also can make or break a general contractor’s reputation. This fact is so important that I usually find a project at my own house for a new sub to do before using him or her on one of our client projects. This gives us the opportunity to work together and find out if our work style is compatible; if we click. It’s taken a number of years to develop a solid working relationship between our trade partners and myself where there is a clear understanding of expectations and mutual respect. I need to learn what was important to them, and then, most importantly I have to treat them well. It is very important to our clients that our trade partners who supply labor and skill to our projects as part of our team also have the same values about quali...

Today I had reason to meet with a contractor myself. My slate roof is leaking and I am having my house (interior) painted, so we need to fix the leak quickly. Unfortunately the roofer also discovered a number of problems with my chimneys. He then asked me who would be making the decisions about the repairs to my home. After explaining that I would be consulting with my husband, he requested a meeting with both of us to discuss his proposal. He pointed out how difficult it is to deal with homeowners when it is unclear who has the decision-making power. Another contractor gave me his contract to review, and he has the owner list the names of the people who will be making the decisions right in his contract. Homeowners have similar issues. They are often faced with whether an employee or sub has the power to make a decision when the general contractor is not present. They also need to ask who has the authority to make these decisions, or they may be faced with unexpected change orders...

Contractors, like lawyers, frequently have a bad reputation. The few who do cause problems for their clients overshadow the numerous excellent contractors who do wonderful work. So, how can one find them? I have frequently said that word of mouth is best, but sometimes you can't find the right person for the job. There are other options than the yellow pages, however. http://www.homeworkssourcebook.com/ prescreens contractors for inclusion in their journals and on their website. They are located in Massachusetts. http://www.nari.org/ is the National Association of the Remodeling Industry. NARI members are self-selected, but they can go through the NARI certification process. The website offers all kinds of advice for homeowners and contractors. http://www.bagb.org/ is the Builders Association of Greater Boston. It is also a great resource for contractors and homeowners. These are examples of some websites that can help you become better educated about home renovation. T...

Given the fact that more and more blogs are flooding the Internet every day, why create another one? In my practice, I see homeowners and home contractors making the same mistakes over and over again. While doctors try to persuade patients that they should come in for a yearly physical, as a lawyer, I rarely see clients unless they are having a problem. Unfortunately, the problem has usually escalated by the time the client will call. If only I had the opportunity to exercise some "preventative" care, these matters might not end up being as complicated and costly. For example, Massachusetts has a very strict home improvement contractor law that is weighted towards the "consumer" side of the transaction. Home contractors' contracts have to be in compliance with this law, or they will automatically be deemed to have violated the consumer protection statute, M.G.L. c. 93A. Any violation of 93A entitles the consumer to the possibility of double or triple damag...