Nil Erdal,Broker Associate DRE# 00968997

Here are some tips on working with contractors:

Contractor License

Contractors doing jobs that exceed $300 are required to have a license issued by the Contractors State License Board. Check with the San Jose office of the Contractors State License Board at (4O8) 277-1244 to be sure that the contractor's license is current and in good standing. You may also ask if there is any legal action pending against the contractor.

In addition to contacting your local 'Contractors State License Board, you should do the following:

• Call the Better Business Bureau at (408) 445-3000
• Inspect some of the contractor's work or talk with some of the contractor's customers
• Deal with local contractors whenever possible ' they have their local reputation to protect Hiring an unlicensed contractor may appear

Hiring an unlicensed contractor may appear to be less expensive way to get the job done, but there are potential serious financial and legal consequences that can cost you more in the long run.

Contractor Responsibilities

The contractor should have current labor/ material and performance (payment and completion) bonds. The contractor can provide you with the bond number and the bond holding company's name, address and phone number.

The contractor is required to carry worker's compensation insurance for all employees. The contractor should be able to show you a certificate of insurance.

If the contractor is not insured, the state requires that

the owner be liable for any worker's injuries.

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Check to make sure that the contractor has personal and vehicle liability insurance. Many will provide you with a written Statement from their insurance company specifying proper insurance coverage.

The Contract

Once you have decided on a contractor, a written contract should be drawn up as an agreement between you and the contractor. Make sure every space in the contract is filled in. Don't doubt your own judgment. If you have a question about any part of a contractor's presentation, ask about it. Sign the contract only if you understand and agree to all the terms.

Right of Rescind

Any time you sign a contract that can result in a lien against your home, you have the right to cancel it within three business days. If you decide to cancel your contract, notify the contractor by phone and immediately follow with a written notice. Send this by registered mail so that you have a record of the mailing date and receipt by the contractor. If you do cancel, there are no penalties and all deposits must be refunded.

The Project

Keep a 'job file' of all papers pertaining to your contract. This would include

a copy of the contract and any change orders, plans and specifications, lien releases, bills and invoices, your cancelled checks or receipts and all written communication between you and your contractor.

Make frequent inspections to ensure that work is going according to plan. Any changes or corrections should be discussed with the contractor. Once agreed upon by both parties, change orders should be written and signed by both you and the contractor.

Once the project is completed, be sure to make a final 'walk-through' inspection with the contractor to make certain that nothing has been overlooked.

Any complaints about a contractor may be filed in writing with the Contractors State License Board or the Better Business Bureau.

Contractors State License Board
Northern Region
Attention: Intake & Mediation
P.O. Box 269116
Sacramento, CA 95826
(916) 255-4027
www.cslb.ca.gov

Better Business Bureau
Santa Clara County
2100 Forest Avenue
Suite 110
San Jose, CA 95128
(408) 278-7400

How do you select a contractor? Here are some important things to keep in mind when hiring a contractor to perform work for you.

Where to find contractors

• Obtain personal recommendations from colleagues and friends who have had similar work done on their homes.
• Ask specialty contractors you've used before if they know of another reliable contractor for the job you now want done.
• Call local trade associations and vocational schools for 'moonlighters.
• Look in the phone book under 'Contractors' or the specialty work.
• Check your local newspaper classified listings

How to get bids for your project Determine what you need to have done. Describe the project very clearly. Include as much detail as possible. Drawings and specification lists can be made part of the description. The more complete your description, the more accurate the bid from the contractor.

Get at least three written bids from different contractors using identical plans and specifications. Make sure these are free bids. Question any bid which is significantly lower than the others; that contractor may be omitting some of the work that was included by other contractors. You could end up in a legal dispute with the contractor if this is the case. You want to be sure of the highest quality of work for the price you pay. Never sign anything you are unsure of. In some instances, the bid proposal may become the actual contract when you sign it.

Selecting a contractor

Contractors are required to have an appropriate California contractor's license for the job they are going to perform. If your project exceeds $300, including labor and materials, the contractor must be licensed for his/her specialty (e.g., electrical, plumbing, etc.).

If three or more specialties are involved, the job should be performed by a licensed general contractor. Licensed contractors typically have adequate bonding and insurance to cover any damage or injuries.

References

Request a list of references ' names of pas and present customers you can talk to about the quality of the contractor's work. If possible, examine both work in progress an completed work.

Here are some questions to ask:

• Are they satisfied with the work?
• Did the contractor quickly resolve any problems?
• Was the job completed in a timely manner and within budget?

If there is any way that I can assist you further, please contact me.

Thank you for visiting my website and I am looking forward to helping you for your real estate needs.


Best Regards,

Nil Erdal
Broker Associate
Coldwell BankerÂ
Top One Percent Producer
(408) 973-9805
(650) 323-9805

E-mail Me

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