Don't get burned by contractor fraud. Here's how to hire the right builder in Florida.
Construction projects are among the biggest financial investments a property owner can make. Whether it’s building a new home, or renovating or building an addition to an existing one, the costs can be steep even if they’re a worthwhile investment.
That’s why builders and insurance companies say contractor competency matters and it's important to find the right one. If you’re planning any new construction or home improvement projects, here are a few tips on finding a builder who is reputable and reliable.
Get word-of-mouth recommendations
Check with friends and neighbors. Often one of the best ways to find a quality contractor is to talk to others who have done remodels or additions you like. Find out if their contractor was punctual and reliable, if the project came in on or under budget, and if they would hire the contractor again.
Make sure contractor is licensed and insured
Florida law requires contractors to be licensed and insured, especially for liabilities. This protects you if someone in your home is hurt while the project is in progress or if there is a safety issue or problem that needs to be fixed after the job is done.
A reputable contractor will provide proof of insurance and license on request. If the builder is unable to provide proof of license, insurance and references, that’s a warning sign.
Hire experienced contractors
Contractors who are more experienced tend to be able to work faster and deal with any potential problems that may arise. Check to see if the contractor has done work in the past that is like the project you want done. If you have a historic home, for example, it may be better to hire someone who has only been in business for a few years, but specializes in historic renovations, rather than going with an experienced firm that has only worked on contemporary homes.
Finding the right contractor
The Florida Department of Business and Professional Regulation (DBPR) suggests people looking to hire a contractor ask for referrals, call references, get multiple quotes, and look for good professional affiliations.
Alton Lister is a longtime builder and chair of the governmental affairs committee for both the Home Builders Association of West Florida and the Florida Home Builders Association. He said the most important step a homeowner can take is hiring a properly licensed and insured contractor, and it’s a big plus if a builder is already involved in the industry.
“The biggest part of construction fraud is from unlicensed contractor activity,” Lister explained. “People think they're going to get a better price. These guys are not paying their insurance. They're not paying the state fees. They're not getting inspections because they're not getting permits. If they do, they get an owner to pull a permit. When a contractor wants the owner to pull a permit, that's a flag.”
Here are other red flags to watch for when hiring a contractor:
The contractor wants a large deposit
Lister said it’s a red flag if a contractor wants an excessively large down payment for the project. In recent, local cases of contractor fraud, many victims said they paid for most, if not all, of the project, up front and had little to no work to show for it.
People should expect to fork over a down payment of about 10–25 percent of the total project cost. Usually, Lister said 10-20 percent is a reasonable deposit depending on the project, from new construction to remodels.
The contract is vague
Make sure you and your contractor are on the same page about what work is expected, the costs, and timeline. Experts say it’s best to have a thorough, detailed contract that addresses the scope of the work, responsibilities, and work and payment schedules.
Contracts that are vague or devoid of details can be a warning flag and mean surprises for unexpected costs on everything from supplies to clean up.
The bid is extremely low
According to Florida’s DBPR, the lowest quote is not always the best quote. It’s important to compare costs, as well as get multiple itemized quotes in writing to compare contractors. People are also warned to avoid remote quotes. Some projects and ballpark costs can be loosely discussed over the phone or online, but a reliable quote should come from a skilled contractor who visits your home and takes the time to understand your goals for the project.
For more information on red flags, as well as what to look for in hiring a qualified and professional contractor, visit the Florida Department of Agriculture and Consumer Services website.
This article originally appeared on Pensacola News Journal: Escambia County tips for hiring the right construction contractor
