05-24-2007, 03:08 PM
Not to sound rude but why would anyone pay a contractor for work that’s not started?
No way Jose! You’re setting yourself up just what happened. If you contract to make progress payments you only pay for work completed to date. If they don’t have the capital to purchase the materials then I would cross them off the list of possible contractors.
Furthermore you need a contract with a lien waver in it that will hold you harmless for materials that the contractor didn’t pay for. That supplier can file a lien on your house and when you want to sell it, refinance it or take an equity loan on it you must first settle the lien and maybe interest to. It's also public record that you have a lien held against you.
Oh, did I forget the liability waiver If they get hurt on your property? (Hawaii has a standard form I got on line) A one or two man shop isn’t required to carry workman’s comp. If they file a claim on your property they just might be building your house for themselves.
Another important factor is references and not ones they pick. Get a list of projects they worked on in the last two years and make some calls. Or better yet get a referral from someone you know.
Buyer Beware…….
No way Jose! You’re setting yourself up just what happened. If you contract to make progress payments you only pay for work completed to date. If they don’t have the capital to purchase the materials then I would cross them off the list of possible contractors.
Furthermore you need a contract with a lien waver in it that will hold you harmless for materials that the contractor didn’t pay for. That supplier can file a lien on your house and when you want to sell it, refinance it or take an equity loan on it you must first settle the lien and maybe interest to. It's also public record that you have a lien held against you.
Oh, did I forget the liability waiver If they get hurt on your property? (Hawaii has a standard form I got on line) A one or two man shop isn’t required to carry workman’s comp. If they file a claim on your property they just might be building your house for themselves.
Another important factor is references and not ones they pick. Get a list of projects they worked on in the last two years and make some calls. Or better yet get a referral from someone you know.
Buyer Beware…….
If you think health care is expensive now, wait until you see what it cost when it’s free...now here come the taxes.....