Q. Why do I need a general contractor ?
Q. So what will a general contractor actually do for me?
Q. All I hear about are the “extras” contractors charge once they start a project.
How can I make sure that doesn’t happen to me
?
Q. My contractor is asking for a 25% down payment before he has even started on my project. How much is customary to pay?
Q. My contractor is always coming to me for money. How do I make sure I’m not paying him before he “deserves” the money?
Q. What happens when I make a change to the original contract?
Q. My contractor says I can save money if I go with a “cost plus” contract. Is that true?
Q. I never see my contractor. There’s never anyone working on my project. He said this project would take
three months and it’s already been five and we aren’t even halfway done yet. What’s going on
?
Q. What should I do? How can I make my contractor show up?

 

Q. Why do I need a general contractor ?

A.  A construction project is like an orchestra and the general contractor is the conductor. Without someone to coordinate all the various elements that make up a successful construction project, you end up with nothing but noise, no matter how good each individual part (subcontractor) may be. TOP

Q. So what will a general contractor actually do for me?

A. A general contractor performs three very important functions.

  1. He or she should provide you with a complete and thorough estimate.
  2. Manage the project during construction.
  3. Supervise the project on a daily basis during construction. TOP

Q. All I hear about are the “extras” contractors charge once they start a project.
How can I make sure that doesn’t happen to me?

A. Make sure your contractor gives you that complete and thorough estimate (see above) before you sign on the dotted line. Most “extras” happen because the contractor did not have the expertise or did not take the time to estimate your project correctly. You should spend time picking out items like countertops, cabinet designs, interior doors, windows and almost every other feature that will be going into your project. Most projects should have few if any unknown items that pop up during construction as “extras.” TOP

Q. My contractor is asking for a 25% down payment before he has even started on my project.
How much is customary to pay?

A. Contractors State License Law allows a contractor to get $1,000 or 10% of the contract amount -- whichever is less. You should never give more than that to your contractor before the job starts. TOP

Q. My contractor is always coming to me for money. How do I make sure I’m not paying him before he “deserves” the money?

A. Again, the Contractors State License Law says a contractor may not receive payment for any work that is not completed. In other words, when 20% of the project is complete, your contractor may request 20% of the funds. Banks and other lending institutions that make construction loans use inspectors to verify the percentage complete before they give the contractor his draw request. TOP

Q. What happens when I make a change to the original contract?

A.  Make sure you agree on the work that is going to be done and on the price you will be charged before you approve any changes. In the original contract it is a good idea to spell out how change orders will be handled. TOP

Q. My contractor says I can save money if I go with a “cost plus” contract. Is that true?

A.  In most instances, the simple answer is NO. Stick to a well-defined, thorough contract from the beginning. In reality, most skilled and knowledgeable contractors prefer a written contract with a fixed amount. “Cost plus” is for the contractor who does not have the expertise or time to properly estimate your project from the beginning. TOP

Q. I never see my contractor. There’s never anyone working on my project. He said this project would take three months and it’s already been five and we aren’t even halfway done yet. What’s going on?

A. Sounds like a case where the contractor isn’t making money on your project. If a contractor is making money on a project he is anxious to be there every morning, and so are the subcontractors. We all work to make money. Who wants to show up to a project that’s only losing money? TOP

Q. What should I do? How can I make my contractor show up?

A. At this point, you’re in a bit of a pickle. Giving more money to your contractor isn’t the answer. In fact, stop any and all payments until you have resolved this problem. You might need the assistance of an attorney or construction consultant to try and get your project back on track.
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