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

Last posting of 2006, Karma and Construction Business

Karma (Sanskrit kárman "act, action, performance"^[1]; Pāli kamma) is the concept of "action" or "deed" in Dharmic religions, understood as a term to denote the entire cycle of cause and effect as described in the philosophies of Hinduism and Buddhism. All living creatures are responsible for their karma - their actions and the effects of their actions. (Source: Wikipedia)

You may say "What does Karma have anything to do with the construction business?" Very little on the surface. As the matter of fact, many of the readers may dismiss this posting as non-sense. I cannot prove the existence of Karma in life, let along in the construction business. I cannot touch, put my finger on or taste Karma, but I believe in it and I try to live my life and conduct business accordingly.

As the description above indicates, all living creatures are responsible for their karma - their actions and the effects of their actions. Therefore, "it takes two to Karma" in the construction business. Contractors need to follow the law and the rules of business in running their enterprises. They need to realize that remodeling and/or new construction is not just a transaction for the customers, but an emotional investment. For most people, money spend on construction is the biggest sum they will ever spend in any endeavor. Contractors need to understand and nurture their customers.

Contractors also need to believe that what goes around, comes around. Taking advantage of customers, unkept promises, cutting corners will eventually catch up with them in their business or personal life. Approaching customers with an open heart and honesty will help contractors gather positive energy they need for the longevity of their business and their life.

Consumers also have a part to play in the tango of Karma. Due diligence, checking references and licenses are the minimum steps you need to take before hiring a contractor. Afterwards, you need to trust the higher powers and your contractor to do a good job for you. Don't stress over the project unnecessarily, and don't bring about unneeded negative energy. My past experiences showed me that customers who are more relaxed about their projects will experience fewer issues. Contractors are there to handle construction related issues, let them deal with it.

In 2007, I wish all of you a healthy and a happy year. Happy new year.

Murat Aksu
12/29/2006

Are there different types of contractors?

"Are you a licensed contractor?" This is a question that I often get asked by my customers during our initial meeting, and that's a good thing. It shows me that consumers in the State of Virginia are getting smarter about hiring State licensed contractors. However, often Consumer's knowledge or due diligence stops at that point. In this brief posting, I would like to enhance consumer's understanding of different types of contractor licenses offered in the State of Virginia.

State of Virginia offers 3 different types of contractor licenses; class A, B and C. Let's start with the lowest level license, C. This class of license is the entry level to construction business as a contractor. State of Virginia does not require holders of class C licenses to take a qualification exam. Instead candidates are obligated to attend a 8 hour long class offered by a state authorized trainer. This is the same class that candidates for all class type license must attend, including A and B. The class generally covers various topics at a high level including legal, business and some local building code. Once the candidates for class C license attend and complete the class, they are qualified to become State certified contractors. Their licenses remain valid for the duration of 24 months. This type of license comes with certain limitations, most importantly project size and annual business volume. C class license owners are limited to work on projects that are under $7,500 per contract and less than $150,000 per annum.

The next level up is class B type contractor license. Apart from attending the mandatory class, candidates must also pass 2 exams in order to qualify for this classification. The exam is designed to test the business, legal and some construction code knowledge of the candidates. The monetary limitations for this class are less than $120,000 per project and less than $750,000 per annum.

The final level is called class A type contractor's license. The holders of this license are required to take the same 2 exams as the class B license holders, and an additional exam that generally tests their understanding of finances and running a business. State does not place any monetary limitations tby projects as well the total volume of annual business for these license holders.

Most counties and cities started to require a "Builder" license for any construction projects involving new construction as well as additions. This classification requires an additional exam that tests the knowledge of candidates on topics such as reading a blue print, state construction codes and safety. Holders of both class A and B licenses can qualify to become "Builder" provided they obey by monetary limitations imposed upon their licenses by the State.

You may say, "What if I have a project that is less than $1,000 per single contract?" In that case, State does not require companies to be licensed for any class of contractor. So you can use your friend from church, work or school for small projects costing less than $1,000 without having to verify if they are state licensed.

I hope this posting will help you understand the different type classes of State contractor licenses. Make sure that your contractor and the sub contractors employed by him/her are State licensed. Verify their licenses by visiting the following URL and clicking on License Lookup:

http://www.dpor.virginia.gov/dporweb/servicesconsumers.cfm

Murat Aksu
December 25th, 2006

Consumer Protection against Contractor Fraud in Virginia

I decided to write about this topic after I found out about one of my customer's terrible experience with a shady construction contractor in the Ashburn, Virginia. This posting is a brief introduction to how my company does business and also very valuable information about consumer protection laws in Virginia that anyone thinking about hiring a contractor should know.

My customer contacted my company A1A Contractors for their kitchen back splash project. Their kitchen was beautifully remodeled with French Country style cabinets, granite top and olive green wall paint. They asked for a grid and diagonal backsplash with accent pieces to match.

This very busy husband and wife team found it hard to go and select tile samples for this project. I decided to help them out by selecting samples from Conestoga Tile and Dal Tile company stores around Ashburn, VA and delivering them to their home. Once they selected the tiles, I ordered them and passed on the contractor discount (20%) to my customer. The construction phase lasted about 5 hours (we worked while they were at work) and after the final clean up we left the house. At about 6:30PM that night, my customer (the wife) called me and invited me back to give me the final payment for the project. She was so excited and said that she could not believe how beautiful the backsplash looked in her kitchen. (Pictures)

I went over to their house to collect the final payment. As the customer was writing the check he told me about how happy they were about doing business with my company. They proceeded to tell me that a contractor they found through Contractor.com took $2,500 of their money and disappeared without finishing their kitchen remodeling project. They then turned to me and said "Would you be offended if we added an additional $65 to the final payment because we are so happy with you?" I was very happy, but very saddened about their past negative experience.

Unbeknown to many consumers, many states like Virginia have passed Consumer Protection Acts against shady contractors. Furthermore, there are Monetary Funds set up to help consumers recover all or part of their expenses including legal fees. In the State of Virginia, the act is called Virginia Contractor Transaction Recovery Act. This act provides and avenue by consumers to file complaints against shady contractors licensed by the State of Virginia Board of Contractors.

If the Board finds that the consumer has be wronged, he and she (family members can claim individually against a contractor) can recover all or portion of their investment from the Transaction Recovery Fund (The maximum claim of one claimant against the Fund based upon an unpaid judgment arising out of the improper or dishonest conduct of one regulant in connection with a single transaction involving contracting, is limited to $20,000, regardless of the amount of the unpaid judgment of the claimant.)

The reason why I want to write about my customer's experience good and bad experience with Construction Contractors is as follows:

1. Just like in life, there are good and bad people involved in the construction business.
2. As a consumer, you should know your rights and select reputable contractors.
3. Contractors need to educate consumers about their rights in order to weed out shady characters out of this business.

Consumer protection is only good if it is used.

Murat Aksu
12/23/2006