So, you've decided to remodel that kitchen after 15 years, and you've contacted a general contractor to come out and bid on the job. After he provides you with his card (and you have confirmed he is actively licensed by the CSLB - see prior post), he views your kitchen, speaks with you about customizing the materials, and writes you a bid. Wow, the bid is for $50,000.00! But, other bids show that $50,000 is actually within reason, so you call him back to agree to hire him. He provides you with a standard-looking contract that identifies the price as $50,000, to be paid in installments - $10,000 down, and $5,000 each week, with $5,000 held back until the job is complete. Wow, $10,000 down???
Actually, in California, a contractor is limited in what he can ask for the down payment: It must be 10% of the total price or $1,000, whichever is LESS! Don't get snookered into providing a down payment that is more than $1,000! Also, many contractors think there is a loophole so that they will ask you for $1,000 on signing, and then $10,000 in advance of demolition or for materials. I strongly recommend that the price be itemized out, at least generally, and preferably specifically. You do not want to get into a situation where the contractor asks for a bundle up front, but barely touches the property.
Related to this topic are change orders - I will discuss Change Orders in more detail next time. For now, be certain to sign off on each and every change requested or suggested or recommended by the contractor. Changes are required to be in writing, signed by the party to be charged. This is to protect the owner from unreasonable and surprise charges!
Have a Great Day!
Abe
No comments:
Post a Comment