08-29-2008, 08:54 AM
Hi All,
My first comment is about Kathy's comment about an uninsured employee. BE AWARE that if a worker on your project, no matter who hired him, no matter what the terms of how he is paid, is injured on your jobsite and there is no Worker's Comp, THEN....YOU ARE LIABLE!!! Your homeowners insurance will cover incidental laborers such as the neighbor boy mowing your lawn, etc., but not a paid worker on a construction project. Always ask for W.C. certificate.
Secondly; It is customary in construction projects of any size for a Maximum of 10% deposit to be charged at the time of signing the contract. Mobilization and time commitment are costly. Imagine if you are a contractor, you show up with your crew, do the excavation, pour the foundation and the owner bails!
In Caifornia, where I hold a G.C. license, Worker's Comp is mandatory when there are employees. Liability insurance is not mandatory, but that must be disclosed in the contract.
Liability insurance can run between 2-4% of a project. That can be $8,000! I make it the owner's choice. A course of construction policy is usually $500-1,000 for a new home and the coverage for the homeowner is nearly the same.
The rule is: Check references thoroughly and FIRST. If this is a new home, you will be in bed with your contractor for a long time and he will be holding your family jewels, so DON'T BE LAZY. At least 5 references followed up carefully before you even ask for a bid. Know that you want to hire him before you ask for a bid. Then ask about the $.
Semi-retired GC, Dan
My first comment is about Kathy's comment about an uninsured employee. BE AWARE that if a worker on your project, no matter who hired him, no matter what the terms of how he is paid, is injured on your jobsite and there is no Worker's Comp, THEN....YOU ARE LIABLE!!! Your homeowners insurance will cover incidental laborers such as the neighbor boy mowing your lawn, etc., but not a paid worker on a construction project. Always ask for W.C. certificate.
Secondly; It is customary in construction projects of any size for a Maximum of 10% deposit to be charged at the time of signing the contract. Mobilization and time commitment are costly. Imagine if you are a contractor, you show up with your crew, do the excavation, pour the foundation and the owner bails!
In Caifornia, where I hold a G.C. license, Worker's Comp is mandatory when there are employees. Liability insurance is not mandatory, but that must be disclosed in the contract.
Liability insurance can run between 2-4% of a project. That can be $8,000! I make it the owner's choice. A course of construction policy is usually $500-1,000 for a new home and the coverage for the homeowner is nearly the same.
The rule is: Check references thoroughly and FIRST. If this is a new home, you will be in bed with your contractor for a long time and he will be holding your family jewels, so DON'T BE LAZY. At least 5 references followed up carefully before you even ask for a bid. Know that you want to hire him before you ask for a bid. Then ask about the $.
Semi-retired GC, Dan