So You Are Hiring a Contractor - WordPress.com · 2014-07-02 · PRESENTED BY: Steven C. Davis,...

P R E S E N T E D B Y : S t e v e n C . D a v i s , E s q . B A R R O N P E C K B E N N I E & S C H L E M M E R

SO YOU ARE HIRING A CONTRACTOR…

Practical Tips for Hiring the Right Professional for the Project

7/2/14 Barron Peck Bennie & Schlemmer Co LPA | 513-721-1350 | bpbslaw.com

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WHAT ARE YOUR OPTIONS

• Personal references are preferred. • Be professional.

•  Avoid personal/”other professional” relationships. • Better Business Bureau:

•  http://www.bbb.org/cincinnati/accredited-business-guide/

7/2/14 Barron Peck Bennie & Schlemmer Co LPA | 513-721-1350 | bpbslaw.com 2

VERIFY INFORMATION

•  Check the court clerk website to verify lawsuit history: http://www.courtclerk.org/

•  Check the auditor’s website to verify address of the

contractor: http://www.hamiltoncountyauditor.org/ •  Check the recorder’s website to verify lien history:

http://recordersoffice.hamilton-co.org/


VERIFY INFORMATION

•  Check the Ohio Secretary of State’s website to ensure the entity is properly formed and in good standing: http://www2.sos.state.oh.us/pls/bsqry/f?p=100:1:0::NO

•  Check Better Business Bureau rating: http://cincinnati.bbb.org/Find-Business-Reviews/


VERIFY INFORMATION

• Check social media for reviews and commentary.

•  “Google” the contractor’s name.


VERIFY INFORMATION

•  Look up the contractor on “Rate my Contractors”: http://ratemycontractors.com/

•  Call the contractor’s telephone number.

•  In service? Voicemail? Receptionist? Call forwarded to cell phone?

•  Interview the Contractor.

•  Note things like the company vehicle, business attire.


IMPORTANT QUESTIONS TO ASK THE CONTRACTOR

•  How long has your company been in business? •  What is the specialty of your company? •  Are you a member of any professional

associations or trade groups? •  Have you ever been involved in a lawsuit over

one of your projects? •  Have you ever filed a mechanics lien over one of

your projects?



•  Are you insured for liability? What are your insurance limits? (Get a copy of the declarations page.)

•  Are you insured for worker’s compensation? (Get a copy of the declarations page.)

•  Do you carry a performance bond? (Get a copy.)

•  Do you carry a payment bond? (If the contractor uses subcontractor labor) (Get a copy.)

•  Do you use subcontractors, independent contractors or employee labor?



•  Do you personally perform labor? •  Do you personally oversee the work? (Meet the

foreman.) •  Will you be there every day? •  From whom do you purchase materials? •  When could you start? •  Do you undertake more than one at the same

time? •  Do you have a business card?


REQUEST A WRITTEN PROPOSAL

With an itemized bid.


GET REFERENCES

•  It’s not the contractor’s choice, it’s yours. Ask for the contact information for the last three jobs performed.


IMPORTANT QUESTIONS TO ASK THE REFERENCES

•  How did you first hear about the contractor? •  Did they show up when they said they would? •  Did they work a full day? •  Was the job finished on time? •  Was the job finished on budget? •  Was the job cleaned up each day? •  Was the job cleaned up at the end of the job? •  Would you hire this contractor again?


WHAT OTHER PROJECTS HAVE THEY DONE

•  Visit the contractor’s place of business. •  Inspect samples of materials to be used on the

project. •  Ask for photos/videos of

other projects. •  Actually visit other projects.


BIDS AND CONTRACTS

•  Get MORE THAN ONE bid! (Every time.) •  ALWAYS have a written contract.

•  Write down EVERYTHING important to the job. •  Written and signed change order requirement.

NO EXCEPTIONS!

•  No oral modifications to the contract.


BIDS AND CONTRACTS

•  Beware the form contract. (AIA forms, etc.) •  Get the names of everyone who will be on site. •  Get a written deadline. Include a “time is of the

essence” clause. •  Customer funded or Customer to reimburse? •  Incorporate plans, pictures and blueprints into the

contract.


BIDS AND CONTRACTS

•  Incorporate specifications into the contract. •  Payment options with advantages and

disadvantages of each – •  Flat fee •  Time and Materials •  Time and Materials with “Not to Exceed” Cap

•  Negotiate a three day right of cancellation in the Contract.


PUNCH LISTS

Require a punch list. Include a provision permitting withholding a portion of the fee pending inspection and completion of punch list.


WARRANTIES AND INSPECTIONS

• Require a warranty. • Reserve the right to inspect progress. • Consider requesting permission to have an

inspecting professional.


ALTERNATIVE DISPUTE RESOLUTION OPTIONS

American Arbitration Association: http://www.adr.org/

Hamilton County Mediation Services: http://www.hamilton-co.org/common_pleas/mediation.htm

Center for Resolution of Disputes: http://www.cfrdmediation.com/


READ EVERYTHING BEFORE SIGNING

•  Clauses related to dispute resolution. •  Waiver of right to sue? •  Terms of payment. •  Warranty limitations. •  Disclaimers on workmanship or materials •  Deadlines concerning initiating claims. •  Fee shifting clauses. •  Jurisdiction and Venue clauses.


KEEPING TRACK OF PROGRESS

•  Keep copies of everything signed. •  Keep a contemporaneous written

calendar of the job. •  Photograph progress of the job. •  Get receipts during the progress of

the job. •  Withhold a part of the fee if agreed

upon. •  Document all concerns and issues in writing.


KEEPING TRACK OF PROGRESS

•  Request (in writing) that the contractor provide a written response to all concerns and issues presented.

•  Keep copies of everything delivered to you.


UNDERSTAND OHIO CONTRACTOR’S RIGHT TO CURE LAW

• Understand Ohio Contractor’s Right to Cure Law

•  Still unsatisfied? Contact legal counsel immediately.


[email protected]

THANK YOU FOR YOUR TIME AND INTEREST Steven C. Davis, Attorney (513) 721-1350

7/2/14 Barron Peck Bennie & Schlemmer Co LPA | 513-721-1350 | bpbslaw.com

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So You Are Hiring a Contractor - WordPress.com · 2014-07-02 · PRESENTED BY: Steven C. Davis,...

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