Before You Invite Them To Your Home

Most licensed contractors are competent, honest, hardworking and financially responsible. However, home improvement is a top source of consumer complaint nationwide. By asking these ten questions, you will greatly reduce the chance of an unsatisfactory remodeling experience.

How are punch lists handled?

Are you licensed?

Do you carry liability insurance?

Do you carry workers' compensation insurance?

Do you guarantee your work?

Do you provide references in writing?

Will you provide written lien waivers?

Who will be in charge of the job once it starts?

Do you pull all the required building permits?

Are you a member of any professional organizations?

Ask questions about how they work.

BONUS: How many projects like mine have you completed in the last year?

How Are Punch Lists Handled?

A punch list consists of the small items that need to be finished at the end of a projet: the ding in the drywall, the missing cabinet knob, etc. It is developed in the last 10 percent of the project, but can be the hardest part of the project to finish. At Kerns Construction Speciliasts, you will not have to face a punch list—because there isn't one. We take care of any annoying items as we go, before they end up on a punch list. This way, you don't have to deal with them. Your project is completed faster and you can start using your new space sooner.

Are you licensed?

Always make sure the company you are considering is properly licensed. Remember that anyone can say they are licensed. Ask for a copy, check the expiration dates, and you can even call the issuing authority to verify that their licensing is in good standing. Colorado has no state-wide licensing of general contractors. Licensing is done on the local level, either (1) by the county or (2) the city you live in. Some counties have no licensing requirements at all (such as Jefferson County). While it is possible for a general contractor to remain unlicensed by only worked in Jefferson County (and outside the city limits of Arvada, Conifer, Lakewood or Littleton) it is highly unlikely for anyone to make a living within only in these exception areas. Legitimate contractors carry multiple licenses in a variety of areas in which they work steadily. What are the risks? Generally, a lack of a license is a huge red flag. Licensing requires passing written tests on codes and building practices, passing experience requirements, and many other aspects that offer proof that the contractor knows how to do the work properly. If somebody isn't licensed, there is probably a bad reason for it.

Do you carry liability insurance?

Make sure the company you are considering carries general liability insurance. This is the insurance that protects your home from damage or negligence from the contractor, his employees, or any sub-contractors he brings on your property. A one-million dollar policy is the standard of the industry. Also, remember that anyone can say they are insured, so seek proof. Ask for a copy of the insurance certificate, check the expiration dates, and you can call the issuing authority to verify that their insurance is in force. What are the risks? If something goes wrong, you have three choices: (1) You can pay for the damages and repairs out of your own pocket. (2) You can sue the contractor for the costs; but if the contractor can't afford to carry insurance, it is unlikely you will be able to collect much. (3) You can ask your homeowner policy to cover it. Of course, there is no guarantee they will cover the loss. Insurance companies protect themselves with contract verbiage that requires you to hire only licensed contractors and prove the work has been properly permitted, among other rules that uninsured contractors are not likely to follow.

Do you carry workers' compensation insurance?

Make sure the contractor carries workers' compensation insurance. If the contractor doesn’t carry workers’ compensation coverage, you will be liable for any injuries suffered by the contractor or any of his employees on your property.

If the contractor is a one-man operation, he may be exempt from having to carry workers’ compensation insurance. In this case, ask him to show you his certificate of exemption. Be aware that this can be risky: if he uses a helper who gets hurt, you will be liable. If the uninsured contractor is sloppy about verifying his sub-contractor's insurance and that sub-contractor gets hurt, again you can be held liable. In any of these cases, you will be responsible by law for their medical treatments, which can amount to a few thousand dollars for a minor injury to hundreds of thousands for a major one.

Bottom line: it is always safer to deal with a fully-insured contractor.

Do you guarantee your work?

This is one of the most forgotten questions for customers. You wouldn't buy a car without a warranty, so your remodel project should be the same way. Ask your contractor about his warranty if it is in writing. Never accept a verbal warranty such as, "If something breaks, don't worry, I'll fix it." Always insist on a warranty in writing. The warranty should clearly spell out what is covered, what is not covered, and for how long the warranty is good. A one year warranty is the minimum you should expect, but two years is better. What are the risks? It's pretty simple: with nothing in writing, you have no warranty. The moment the contractor cashes your final payment you have nothing to protect you from poor workmanship or an innocent defect.

Do you provide references in writing?

A good contractor will be happy to provide you with dozens of written references. One of the best ways to gauge a company's abilities is by talking to their past customers. Ask them how well the company met its promises, if it delivered on time, and most importantly, if they would hire the company again. Ask them what they like the most about working with the contractor, along with areas of improvement. What are the risks? Basically, you are entering a relationship based on nothing but trust and hope. Most people operate in a pattern of repetition. The person you hire should be someone who does honest, competent work.

Will you provide written lien waivers?

Your contractor should have no problem providing you with a written lien waiver at the end of the job. This is a legal document that states how you have paid the contractor in full for the services rendered by the contract and the contractor waives his right to place a mechanics lien on your property. A good general contractor will also provide you with lien releases from any subcontractors that do work on your project, such as electricians or plumbers. What are the risks? Without a lien release from the subcontractors you can be liable for their payment, as the lien laws in Colorado favor anyone working on your home over you. A general contractor can subcontract work to anyone and choose not to pay them. Without a lien release, a subcontractor can hold you responsible for payment even if you have already paid the contractor in full – effectively forcing you to pay twice.

Who will be in charge of the job once it starts?

Make sure the contractor in person, or one of the high-level foreman or lead carpenters is on the job daily whenever work is being performed – especially when subcontractors are being used. The responsible party must be intimately familiar with all aspects of your project. Remember: if you won’t be home during construction, you will likely leave the home unlocked, or leave a key with the contractor – so you must feel comfortable with what is going on when you are not home. What are the risks? Basically, you are hiring a general contractor you have met and with whom you have established a level of trust. However, many contractors are nothing but salesman, acquiring the job and selling it to someone else to complete – someone you have never met and with whom you have no control. Even if the contractor keeps the work in-house, who is going to show up every day? It is better to know that the contractor or his foreman with years of experience will be present, rather than unskilled and/or unsupervised workers.

Do you pull all the required building permits?

Some contractors hate to pull building permits because they add costs to the project and can slow it down. However, it is very important that your contractor pull all required permits, as this is your only assurance that the work will be done to code. Inspections offer you protection by placing an independent third party on your side. Going further, most homeowner's insurance policies will only cover your home for work that is properly inspected. Some contractors may ask you to get the permits; this is usually a warning sign that they are unable to pull the permit themselves, possibly because they are unlicensed or the work is outside of their license.

What are the risks? Most homeowner's insurance policies contain clauses that prevent you from receiving payment for a claim if the work is done illegally. Your home is your biggest investment, and you could unwillingly place it at risk without the proper precautions.

Are you a member of any professional organizations?

Well-established companies are affiliated with professional organizations such as the Better Business Bureau and industry-related organizations such as the NKBA (National Kitchen and Bath Association), NARI (National Association of the Remodeling Industry), or NAHB (National Association of Home Builders), In all cases, these organizations only attract conscientious contractors interested in improving the industry and weeding out unprofessional contractors. In order to become a member, the contractor’s background and references are thoroughly investigated. While a new contractor may not be a member of any professional organizations, it is highly unlikely that an established contractor would not be a member of at least one – unless there is a reason he cannot join. What are the risks? While there are some legitimate contractors that simply do not belong to any professional organizations, they are the rare exception. The vast majority of substantial companies do belong to such organizations because they understand the benefits of continuing education and peer review.

Ask questions about how they work.

I can't stress how important this information can be to you. Ask questions about how they perform their work, what time they start, how they will protect your carpets, how the trash and debris is handled, and whether they work straight through a project. The answers to these questions will give you a clear picture of what type of contractor you are dealing with. What are the risks? If you do not clarify these issues, you could be in for a big surprise once work starts and you find yourself in a mess. Do yourself a favor and ask specific questions in order to make an informed decision about the contractor(s) – before you find it too late.

BONUS: How many projects like mine have you completed in the last year?

Your contractor should have experience in the type of remodeling project you want done – not just generic "contracting experience". The more a contractor has specialized in the work you need done the better off you will be. Many contractors dabble in anything that comes their way and never develop a particular expertise in the work they do. What are the risks? They could be huge and long-lasting. What could be a routine task for a company familiar with your type of project might pose a real problem for an unexperienced contractor. This can lead to sub-par quality, and defective installations that don't appear until long after the work is done. The world we live in is getting progressively more complex – don't put yourself in the position of paying a company to learn the job as they go.