How long is my contract proposal valid?

Contractors, especially those who are good at what they do, are kept very busy. On the average , a good contractor will provide between
5 to 10 proposals per week. The sales cycle for construction contracts average out to be 1 to 3 months. When do these contract proposals expire? Can a homeowner force a contractor to execute a contract 3 months after it was written?

The Virginia State regulation for construction contracts requires that an expiration date should be written in every proposal. The expiration date for the contract should be a reasonable amount of time. The contract proposal will expire on the date stated in the written proposal. If an expiration date is not included in a written contract, the State allows for a "reasonable time" for its validity. The word reasonable time is very flexible and it can mean different things to different people. Common sense is that a contract proposal should generally be valid for 30 days. Beyond that it should be re-written.

Good luck.

Murat Aksu
01/15/2007
www.a1ateam.com

Did my contractor abandon me?

Let's say you found the perfect contractor for your project, and you signed a written contract with him. He said that the project should last about 15 days to finish. He took 30% of the contract cost up front, and he started the demolishing part of the project. He left your house one day, and he said he will be back the next day at 9AM.

It has been 5 days since then. You have been calling him and he has been giving you the runaround. He tells you that he will be there tomorrow for sure, and that he is certain the project will be completed on time. You say to your self "Is this person a crook? Did my contractor abandon me?"

The answer is that your contractor did not abandon you, yet, in the eye of the State. Rules governing contractors state that the home owners need to allow reasonable amount of time to contractors in order to complete the project stated on your written contract. In the example above, the contractor had stated that the project would be completed in 15 days. The scenario states that the contractor has been gone for 5 days. In this case, the homeowner should wait for another 10 days and contact the contractor via certified mail. If the contractor does not come back to finish the project, homeowner should contact Virginia Department of Professional and Occupational Regulation.

Now, my personal opinion. I think that any contractor that does not keep his promises and leaves projects unfinished is a crook. You should read my article on "How should you select your next contractor?" in order to weed out these types of fly by night operations. Checking references, and verifying past work history will help you eliminate 90% of the crooks. You need to catch the rest by being diligent about your down payments, and your project schedule.

Good luck.

Murat Aksu
01/15/2007
www.a1ateam.com

How should you select your next contractor?

There are few simple rules that you should follow in selecting a contractor for your next remodeling or construction project:

1. Check the references of the contractor with at least 3 of his/her customers.
2. Ask questions about project timeliness, workmanship, cleanliness and behavior under duress.
3. Ask to see if they would hire him again.
4. Require the contractor to show pictures of past projects.
5. Ask for work progress pictures in addition to before and after pictures.
6. Check the contractor's state license for complaints and expiration.
7. If the contractor asks you to get the necessary permits, be suspicious of his ability to work in your State.
8. Ask for a written contract.
9. Ask for an updated contract for any changes that occur during the project.

There are many articles written about selecting contractors. One of the best ones I have seen can be found at Federal Trade Commission's web site at: http://www.ftc.gov/bcp/conline/pubs/services/homeimpv.htm

Also, read my previous articles at:
http://constructionbusinessinvirginia.blogspot.com/2006/12/consumer-protection-against-contractor.html
and http://constructionbusinessinvirginia.blogspot.com/2006/12/are-there-different-types-of.html

Good luck and have fun.

Murat Aksu
A1A Team
www.a1ateam.com

How should you pay your contractor?

The last contractor I talked to asked for 50% down payment before he even started the project? Is this normal? What is the norm in payment schedules for construction projects? The answers to these questions depends on the size of the project and the type of solicitation. Let me try to explain.

If you hire to contractor for a small project such as kitchen backsplash tiling that will last for 1 to 2 days, you should pay 50% upfront and 50% upon completion of the work described on the signed contract. On the other hand, if your project is larger, such as bathroom or kitchen remodeling, you should break up your payments to 3 different parts such as demolition, preparation and installation.

Your payment options also differ based on the solicitation used to sell services. If the contractor left a brochure in your mailbox or your door, you should not pay more than 30% upfront. This is a State of Virginia recommendation and it also requires that contractors provide consumers with a copy of Statement of Consumer Protection from Department of Professional and Occupational Regulation. You can find a copy of the document at http://www.chesterfield.gov/communitydevelopment/buildinginspection/residential/TechGuides/hiringcontractor.pdf

Regardless of any suggestions, payment schedules should be based on the needs of the individual project. One thing is certain, you must have a clear understanding between your contractor and yourself about your payment expectations. Most importantly, the schedule should be in writing in your contract. Check your contractors references, check on his license status and have a clear contract. Enjoy your project.

Murat Aksu
A1A Team
www.a1ateam.com