Before Signing A Contract - Part 1

Wed Oct 14 2015

• Kitchen

Finding the right contractor for your home can be a daunting task. Kitchen remodels provide the highest return on investment (arond 80-85%) compared to other home improvements so it's important that it's done right. As they say, a ome project is only as good as the person you hire and you don't want to leave your investment in the hands of an amateur who may end up costing you more money and leaving you with an unfinished kitchen. To ensure your kitchen remodel goes as smoothly as possible, add the following to your checklist for interviewing potential contractors before signing a contract.

 

Check Credentials The first thing you should check with a contractor is if they have all the required licenses for the project. Kitchen contracting licenses are only given to those who complete the necessary coursework and testing required to earn certification. Maryland contractors should be licensed by Home Improvement Commission, Viriginia contractors by Virginia Department of Professional and Occupational Regulation, and District of Columbia contractors by Department of Consumer and Regulatory Affairs. Usually you can easily check for licenses online to filter out the small number of bad contractors from the rule-abiding ones. Contractors should also have insurance coverage (personal liability, worker's compensation, and property damage coverage) to protect you from any liability of injuries or damages that may occur. Ask to see a copy of their insurance and call the company to see if it's current.

 

Get Permits Permits are required for any type of kitchen remodeling. A contractor may become tempted to cut corners by skipping out on permits to speed-up the construction process and could convince you it's okay. However, doing so can (and probably will) cause you issues with not only your insurance company but also with refinancing or selling your home. It's really not worth the risk or added fines.

 

Check Your Deposit It may seem obvious that any contractor requesting full payment upfront is a major red flag. What you may not know is contractors are not legally allowed to accept more than a 1/3 deposit on his or her labor expense. So while it may seem like a reasonable upfront cost, don't sign a contract that requires more than 33% of labor costs. These are just a few ways to cover your bases. Next we'll discuss tips to hiring an experienced and talented contractor to start your kitchen renovation!