New Social Networking Website for Women

Hi everyone,

My wife started a new social networking web site for women living in Loudoun County. You can find it at http://www.modernmommagazine.com

Check it out.

Race to the bottom

I know that many consumers complain about the high prices of construction/remodeling cost in the United States. Not everyone is aware of the high cost of labor, and materials that is involved in any construction project. Customers equate high prices with high profits. The reality is quite the opposite.
Consumers are indiscriminately hiring rogue or sometimes illegal contractors, handymen and other fly by night operations for construction services. In most cases, these unqualified operations are desperate for money, and accept projects at cost or below cost prices. Most of the time, they have no intentions to finish the projects they start, and they hunt for more and more projects to keep them afloat. Consumers end up getting hurt both financially and emotionally and they simply loose their trust in all contractors.
A side effect of this is the downward pressure on prices that legitimate and legal contractors need to charge for construction/remodeling projects in order to provide high quality services. Legitimate contractors have to incur many costs such as bonds, insurance, legal wages, taxes, etc. All of this cost must be recouped from projects over a year's duration in order to continue to operate a quality enterprise. When the prices are pushed down by illegal competition, many contractors will either go out of business or they will end up providing less than perfect services. The cost has to be accounted for and unfortunately it is the consumers who will end up suffering from lowered service quality.

What do I mean from lowered service quality?

• It could be in the form of shorter warranties,
• lower quality of workmanship resulting from hurried project completions,
• unresponsiveness to smaller projects, etc.

What can the consumers do to avoid this from happening to them?

• Pay a fair price for the projects.
• Don't compare prices from illegal operations to legitimate contractors.
• Do your homework and set your own expectations right based on industry prices.
• Don't abuse good contractors and frustrate them out of business.
  
• Keep in mind we all need good contractors to survive in our economy and we cannot outsource contractor work in construction.

Good luck.

Murat Aksu
A1A Team
(703) 728-8836

Civility and Courtesy

What is the biggest consumer complaint about contractors? "They don't respond to customer inquiries in a timely manner or not at all." For the most part, this is true. Customers may have to call 4-5 contractors before they receive a call back from 1 or 2 of them.

So what is the biggest contractor complaint about consumers? "When they respond to consumer inquiries with a written proposal, they do not hear back from them unless the contract is accepted." In our daily life, none of us, contractors or consumers tend to act this way. We usually return phone calls to people that we know. We respond back to provide feedback or at least an answer to each other.

Imagine that you call a doctor's office to make an appointment. They call you the day before your appointment to confirm. If you have to cancel your appointment, you would call and inform that you will not be coming in to see the doctor. This is just a common courtesy and a requirement of civility. Why should we act differently when it comes to contracting business?

We can all do better, as contractors and consumers, if we only returned phone calls and provided feedback (yea or nae) to written proposals that we receive. Happy Easter to all that celebrates it.

Best Regards,

Murat Aksu
A1A
April 5th, 2007

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