Home Contractor vs. Homeowner

Last night I attended the Builders Association of Greater Boston economic forecast dinner. The speakers were excellent, and they provided some encouraging news for Massachusetts and the nation. To summarize, their view is that the first quarter of 2009 is going to be the worst, and then things are going to gradually get better. In their opinion, we all need to try to funnel money into the economy. Those who want to buy homes should start doing it now. Mortgage rates are low, and housing prices have dropped. Those waiting for prices to drop even lower are part of the reason that we are in such a bad situation right now. There are efforts being made to help protect buyers by reimbursing them if prices were to drop even lower. So, that supports my contention that it is a good time to renovate. You will be helping the economy and availing yourself of the good deals out there. To my last comment: There will still be bad contractors out there, but I do believe that those who are ri...

I imagine that some of you will say it's crazy to start a home renovation project in this economy. However, there are many reasons to consider doing one now, and here are a few: 1. Contractors are no longer busy. The days are gone when contractors could afford to disappear from your project because they were working on others. It is in their best interest to do a good job and keep the homeowner happy. Now, more than ever. 2. The bad contractors are closing shop. I know so many contractors who are going out of business. This is very sad, but it is also serving to retain the good ones who have treated their clients well and maintained a good reputation. It is more likely that someone who has stayed in business is a "good" contractor. In my mind, that means there is a greater likelihood of a successful renovation project. 3. You will get a fair price. See #1 above. 4. The homeowner might have more time to devote to the project. My work is not as busy, and most ...

Like most construction lawyers, I am spending a lot of time thinking about the economy and how to safeguard my practice in these tough times. It occurred to me that now, more than ever, homeowners need to be realistic when planning a home improvement project. I have been absolutely astounded by the projects undertaken by homeowners that are well beyond their means, or cause them to live so close to the bone that there is no room for extra expense. By the time they come to see me, their situation is truly disastrous. Even in home renovations that run smoothly, it is not unreasonable to allow a cushion of ten percent for unexpected change orders. This is not the contractor's fault. One never knows what one will find once excavation begins or walls are demolished. Any sensible contractor will include a clause in his contract that allows for a change order when unexpected conditions are encountered. I jokingly tell people that I will not even change a lightbulb in my house for fear tha...

I have been wanting to post about insurance policies and construction projects for quite some time, as there is a great deal of confusion about what kinds of policies are necessary and which items are covered. Mark Tarpey of Tarpey Insurance Group provided me with this guest posting: For New Construction, the Purchase and Sales Agreement must be reviewed to determine who is providing the insurance during the course of construction. I have seen contracts that require the builder to carry it and some other contracts require the homeowner to provide the coverage. The builder will provide the coverage under a Builder’s Risk Policy. The homeowner can purchase a standard homeowner’s policy with an endorsement to cover the theft of materials( this is excluded under a regular homeowner’s policy). If the homeowner owns the lot during the construction phase, they should require the builder to list them as an additional insured under the Builder’s general liability policy. During a remodeling pro...