Contractors from Hell

Deciphering Estimates – Thoughts From Our Prevailing Experts

Jody Costello — Wed, 08 Feb 2012 00:28:24 +0000

Exclusive to eLocal Blog-Off Experts

Interpreting Home Estimates Awards

“Most Insightful”

Jody Costello of Contractors From Hell had the most insightful comment:

“For homeowners, interpreting and comparing estimates is the biggest challenge they face because more often than not, they have no idea what’s really included in those estimates. They make assumptions based on a lack of knowledge on how each contractor is bidding out the project, if they are including materials, specific work summary and a detailed spec sheet.

Unfortunately, these are grey areas to a homeowner who will skim over important details – or lack thereof – and get to the bottom line pricing. Which, should they go with that alone will surely get them in trouble when they discover unexpected work or materials aren’t in the bid and change orders begin flying.

With proposals, it’s necessary to conduct an exhaustive proposal review to ensure the proposals actually have apple-to-apple information. Proposals that are not clear, complete and uniform cannot be compared. Period. The price of a proposal has no meaning if you don’t know what’s included. And therein lies the problem; homeowners more often than not, simply don’t take the time needed to do this.”

We like Jody’s comment because she points out two problems which can lead to misunderstood estimates: a homeowner’s lack of experience and an estimator’s lack of clarity. Being aware of these challenges will lead to a better experience for both parties.

See the rest of Jody’s comment here.

Exclusive to eLocal Blog-Off Experts

What to Look for in Good and Bad Home Remodeling Warranties

Jody Costello — Wed, 08 Feb 2012 00:13:11 +0000

The following is a guest post:

Most states require remodeling companies to carry a limited warranty by law, usually for one year, on parts and labor performed on all sizes of remodeling jobs, even small home improvement projects. Knowing the minimum warranty in your state is a good place to start when it comes to picking a remodeling company with a good warranty. You’re looking for a company that goes above and beyond the minimum.

Basing some of your initial decisions about which remodeling company to hire on the warranty alone can help homeowners weed out some of the more questionable companies immediately, before moving on to issues such as cost, references, and project history.

A remodeling company offering a warranty that’s longer than the state law requirement shows that they stand behind their work. Contractors that are constantly returning to the jobsite to fix faulty construction don’t offer extended warranties on projects. Choosing the less expensive company whether remodeling a kitchen or any other room of your house with a shorter warranty won’t save you money in the long run either, when you have to hire a second remodeling company to fix the work of the first.

By choosing a remodeling company with an extended warranty, you, the homeowner, are covered either way. Companies that back their work are far less likely to have to return to the job to fix it, and just in case a problem arises, a good warranty will guarantee that it gets solved at no cost to the homeowner. Here are a few other things to look for in both good and bad remodeling warranties.

Bad Warranty: The standard warranty usually comes with a guarantee to fix all work that’s found to be faulty within one year of project completion. Many standard warranties are transferable to a new homeowner, which can be a minor selling point in the event your home’s up for sale, but the warranty is still only good for one year from the date of project completion.

Here’s what’s missing in a basic one year warranty: The work or labor that the company completed is covered, but any faulty parts or appliances are not. Many remodeling companies will hire subcontractors to do specialized work such as painting, stone masonry, or drywall. The work of subcontractors may not be covered under a standard warranty.

Finally, beware. If you or anyone other than the original contractor attempts to repair faulty parts or construction on a remodel job, even in an emergency, the warranty becomes void. If your contractor is called in to make repairs, the warranty on those repairs is not extended to one year from the date of repair completion.

Good Warranty: Again, you’re looking for a contractor that’s willing to go above and beyond the basic requirements, so it’s advisable to look for companies that offer at least a two-year warranty when the law requires one. Many quality remodeling companies are willing to offer much long longer warranties, sometimes as long as five to ten years on labor, in order to stay competitive with one another.

Remodeling companies that offer longer than a one year warranty on parts are a good sign too. Companies that perform quality work purchase quality parts and hire reputable subcontractors that offer their own extended warranties. You can expect longer warranties to come with some exclusions: for example, a five year warranty on labor will probably have a shorter warranty on parts, appliances, and subcontractors.

About the Author: Joaquin Erazo, Jr., senior vice president of Marketing and Public Relations for Case Remodeling/Design, writes about a variety of tips for home remodeling and home improvement projects on his company blog, Remodeling Tips & Trends.

Contract Bonds Reassure Clients In Three Key Ways

Jody Costello — Thu, 02 Feb 2012 22:35:06 +0000

The following is a guest post:

As a construction professional, you know that you frequently have to buy surety bonds before working on certain projects. But why is bonding important? The most direct answer is that contractor bonding gives your clients peace of mind. When clients know that the construction firm they’re working with is bonded, it reassures them in three major ways.

1) Being bonded shows clients that you comply with government regulations.

Countless government agencies require construction professionals to have a contractor’s license before they can work in certain areas. You can use your licensed and bonded status as a way to market your firm. Informing clients that you’re licensed and bonded reassures them that your firm is in good standing with government agencies at both the state and local levels.

2) If you don’t do your job, bonds give clients a way to collect reparation.

Every time you purchase a contract bond, whether it’s for general licensing purposes or for performance on a specific project, you’re binding yourself to a legally enforceable agreement that says you’ll do your job according to law. If you fail to meet the bond’s terms, the harmed party (a.k.a. your client) can make a claim on the bond to gain reparation. If the claim is found to be valid in a court, the bond’s legal language will require either yourself or the surety to pay the harmed party compensation. Therefore, clients have nothing to fear when entering into a project contract with a construction professional that supplies the proper surety bonds.

3) The bonding process keeps unqualified contractors from working in the industry.

Getting a contract bond isn’t always easy. Surety providers, government agencies and consumers all know this. One of the major purposes of the bonding process is to weed out individuals and firms that don’t have financial stability. For example, if a claim should be made against a large bond that’s maintained by single contractor, he might not have the funds needed to pay reparation, which would leave the surety footing the bill.

Surety providers usually avoid bonding risky principals, such as those who have limited funds or poor credit scores. As such, the surety bond process might seem unfair when it keeps small construction firms from working on bigger projects. However, it’s generally considered an effective evaluative method that keeps unqualified individuals from gaining access to a position through which they might cause others harm, whether physically due to shoddy work or financially due to unfinished work. When you’re bonded it shows clients that a neutral third party (your surety provider) evaluated your business and found it to be financially stable.

Danielle Rodabaugh is a principal for SuretyBonds.com, an online surety bond agency that issues surety bonds nationwide. As a part of the company’s ongoing educational outreach program, Danielle writes informational articles that help construction professionals better understand surety bonds.

Appliance Repair Or Replace…That Is The Question

Jody Costello — Tue, 08 Nov 2011 22:47:32 +0000

Here’s a great article and tips on repairing or replacing appliances – also the infographic is very cool – check it out below!

http://www.partselect.com/JustForFun/Appliance-Repair-Replace-Infographic.htm

Source: PartSelect Appliance Parts

Construction Contracts

Jody Costello — Tue, 20 Sep 2011 23:25:23 +0000

Here’s my latest article for Cover 2 Cover Magazine for which I am a contributing writer. Check it out!

http://www.cover2coverpublications.com/publication/?i=81034&p=16

Do Those Do It Yourself Home Impovement Shows Help Or Hinder The Trades?

admin — Thu, 07 Jul 2011 22:31:00 +0000

I participate in a few forums and blogs and one of the questions posed was if those home improvement shows that depict do-it-yourself weekend projects as being potentially hurtful to the trades and not portraying the real work that goes into the final result. Some actually thought it hurt their business and others thought it devalued their expertise. Still others thought, that ultimately there would be mistakes to correct and in the end good for them. Also that the real work needed to be done behind the scenes wasn’t being shown, leaving the impression that it was all too easy to tackle for a weekend project. There were also a few who agreed with me to the extent that education is never a bad thing, as there is a lesson to be learned in all of it – good or bad. Here’s my say on it:

I must say that as a homeowner and someone who teaches consumers around the subject of avoiding a home remodeling disaster and choosing their contractor wisely, education is much needed even if it comes in a more sensationalized version from the media. At the very least it opens their minds to the possibilities as well as the potential for problems. Consumers are creating the demand for these shows to satisfy their curiosity and entertainment needs. And I’m seeing more of these shows becoming created through the various media query outlets seeking experts to cast for these shows. They’re here to stay so rather than resist it, why not take the opportunity to educate your customer based on this very subject and inject some reality behind it all?

Both my husband and myself are big do-it-yourselfers, but we know our limits. He has a construction background and I took it upon myself to take classes in order to execute certain finishes. We’ve both been inspired in the past as a result of something we saw on these shows and always farm it out if it’s beyond our abilities. So a professional tradesperson gets some work as a result of our exposure to an idea from a show. That’s a win-win.

Sure there are those who get in over their heads but then that becomes a lesson learned – especially if it cost them more to correct. Finally, having been in the media myself, yes they are looking to create a big impression upon their audience and entertain them at the same time, which is after all, what people want when they sit down in front of their TV sets. And if there is an educational aspect around it, all the better.

Contributing Writer for cover2cover mag.com

admin — Tue, 14 Jun 2011 01:29:00 +0000

Delighted to be a contributing writer for cover2covermag.com an online digital magazine. I’ll be writing about all things \ home improvement!

Contractor Problems

admin — Tue, 03 May 2011 19:31:00 +0000

I received an email from a homeowner who after signing a contract and moving forward with their remodeling project soon realized they had made a mistake in hiring the contractor. Which is pretty much what happened to us 11 years ago. My Horror Story and Warning Signs section offered her validation that she was not alone and needed to take action before things got worse.

Unfortunately, from this point forward there are going to be costs not anticipated, such as hiring an attorney to review a contract that is likely devoid of any protective clauses including right to terminate based on specific actions or lack thereof. Time lines were not being honored by the contractor, who kept offering reassurances that all would be well. They want to terminate the contract but of course fear the ramifications of that and rightly so. In the mean time, they are trying to be patient, asking questions and hoping for the best. So now they are at the mercy of their contractor, the very thing I teach folks how not to be! It is my biggest pet peeve that consumers choose their contractors poorly and don’t take the time to get educated on their rights, the contractors rights, contractor state laws such as Mechanics Liens, Preliminary Notices, Lien Waivers, background checks and so much more.

People just don’t realize the need to get informed on what I call the pre-renovation process that takes you through all the ins and outs of contracting for a home renovation project and understand what’s at stake.

You need to prepare yourself to undertake a project that is going to consume your money and protect that consumption of money from being unfairly drained further due to poor choices and a lack of knowledge. We consumers are the only ones that are responsible for protecting ourselves from unscrupulous business practices because the government can’t and won’t protect us. And litigation is a costly way to seek justice and to right a wrong.

If you’re planning on renovating then plan on getting educated on the realities and risks and get informed – Join the Home[Pre]modeling Boot Camp for Women (and The Men Who Love Them!) and learn how to prevent a home remodeling disaster and have a more positive experience instead!

Not Knowing Your Rights Can Cost You

admin — Tue, 19 Apr 2011 18:18:00 +0000

I recently received an email from a homeowner who asked if he should sign a Mechanics Lien document that was included with the contract he was to sign to begin a home renovation project. He made reference to some article he read – perhaps on my site – and wanted some clarification.

First off, a general contractor should not be giving the homeowner a Mechanic’s Lien along with the contract. And I have no idea exactly where this homeowner is in the process but my advice was to immediately contact a construction law attorney to review what he was given. Moreover, I detected through his writing that English may be his second language so there is another layer of challenges in what is potentially a risky undertaking – IF you don’t know what your contractor state laws are.

These kinds of questions are the very reason I created my Home [Pre]emodeling Bootcamp For Women (and The Men Who Love Them!) in an effort to get people educated on making good choices, conducting the right research and getting engaged in doing the work needed to mitigate problems and stay in control of their project and money.

Learn more about the Bootcamp here before you make any decision regarding contractors and your home renovation project.

5 Key Tips For Hiring The Right Contractor For Your Home Remodeling Project (and avoid the contractor from hell!)

admin — Fri, 11 Mar 2011 00:39:00 +0000

Hiring the right home renovation contractor really is an “inside job” that requires thoughtful research on the part of the homeowner. Folks who are considering renovating their homes this year should plan first on getting educated about hiring the right contractor for their project and understanding their rights.

The fact is that home improvement has consistently ranked at the top for consumer dissatisfaction and fraud according to various consumer agencies.
Continue reading article here…