Guide to contractors: Finding a good one, work tips and problem-solving

Ken Widmeyer remembers counting nine people working on the renovation of his Green Lake Craftsman and thinking, "Ooh, this is costing me."

Combine the cost with the dust, the inconvenience and the scheduling challenges, and it was a rough three-year renovation. "You must have infinite patience," he said.

Working with a contractor is a complex task, but there are ways to minimize the hassle. Researching the home project and contractor is critical, and so is managing your contractor and the project, experts say. But once you learn how to do it, finding a good contractor and making the project work within budget will follow.

"This isn't outside of your experience or how you manage other parts of your life," said Jerome Diepenbrock, an architect who teaches classes on how to manage a remodel. "As soon as you have a roadmap, you'll be able to negotiate."

Here are some tips from experts on the basics:

Planning the project

• Before looking for a contractor, do preliminary work so you have a clear vision of what you want to accomplish.

Before you hire ...

Here are a couple of resources for information on hiring and working with a contractor:

State Department of Labor and Industries: www.lni.wa.gov/TradesLicensing/
Contractors; click on "Hiring a contractor." You can also call 800-647-0982 to learn about a contractor's history.

American Institute of Architects: www.aiaseattle.org/
contract_documents.htm. This site sells contract forms.

• Outline the work, including house measurements, what's in place and what you want to add or change. If you can, find a draftsperson to draw up plans.

• The plans and research will help set a budget. You might discover you can't afford the bathroom addition, or you can pull it off only if you nix luxury choices like granite countertops.

When you have a clear vision of the project, describe it verbally and in writing with a contractor. Problems are often rooted in poor contracts, Diepenbrock said. So be clear and precise about the project.

• If you manage the project correctly, you can keep costs within 10 percent of your original plan, he said.

Finding a contractor

There are many good contractors. About 55,000 are registered, and another 7 to 12 percent are not, said Elaine Fischer, a spokeswoman for the Washington State Department of Labor and Industries.

The following steps can help you find one of the good ones:

• Interview contractors and get written bids. The state recommends interviewing several qualified, registered contractors. Look for remodels you admire, and talk to homeowners. Widmeyer found his contractor by asking a neighbor.

• Check references. You can find out a lot from other homeowners. If possible, visit a site where work is in progress.

• Check for workers' compensation. If the contractor is bringing in his own employees, make sure the contractor has a state workers' compensation account that is up-to-date, Fischer said.

• Background checks. Contractors registered with the state are required to have liability insurance and a bond ($12,000 for general contractors). (You can file a claim on the bond if work is not done according to contract specifications.) Check for lawsuits and infractions.

To find out if a contractor is registered, has workers' compensation for employees or has infractions, go to the state labor department's site at www.lni.wa.gov/TradesLicensing/Contractors and click on "Hiring a contractor." You can also call 800-647-0982 to learn about a contractor's history.

• Evaluate the bids. Make sure the bids cover the scope of work, warranties, references, time frames and price.

• Sign a good contract. Plans come in handy here and can prevent unexpected problems. Take photos of examples of the contractor's work that you like, such as interior or exterior joints, and include them in the contract so your expectations are clear, Diepenbrock said.

The written contract should include price, payment terms, sales tax, permit fees, specific work to be performed, materials used, warranties and payment schedule, the state says. Also include how to deal with change orders, final review, sign-off procedures and cleanup.

The American Institute of Architects sells remodeling contracts at its Seattle office (1911 First Ave., Seattle, 206-448-4938) or through its Web site at www.aiaseattle.org/contract_documents.htm. The average price is $10. Diepenbrock recommends using their contract or at least using it as a reference point.

Managing your contractor

Here are other ways to ensure the contractor does the work you expect:

• Make a schedule. Talk to the contractor about construction phases, such as demolition and electrical and plumbing work. Have the contractor mark down the timing for each phase.

• Timed payments. A down payment of 10 to 15 percent is generally sufficient, Fischer said. Spread out payments according to construction phases, paying only when that portion of the project is finished and inspected. If there are changes in the project, get a change order, which lays it out in writing. Verbal agreements are not enough. The state recommends withholding 15 to 20 percent of the cost until you are satisfied with the project.

• Consider a performance bond. Have the contractor post a performance bond for the entire cost of the project if it is more than $6,000. There's a fee, but it will help with big projects.

• Be available. Widmeyer was flexible with his work schedule and took some days off to oversee major construction phases.

• Get permits. Permits help guarantee a contractor is doing the work correctly. "You don't know if it's plumbed right or wrong, or if it's wired right or wrong," Diepenbrock said. "The inspector does." You also should check that the contractor has permits and inspections set up. Ask for copies of permits.

• Protect yourself from liens. Suppliers, workers and subcontractors can file liens against your property to force you to pay if they are not paid. Ask the contractor for the disclosure statement about lien releases.

Protect yourself by making checks payable to both the contractor and the subcontractor or suppliers. Before you make final payment, request a completed lien release from all major subcontractors and suppliers.

For more information, see the labor department's Web site.

Warning signs

Most contractors are honest, but people naturally talk about the unscrupulous ones. The state hears dozens of complaints during the busy season, Fischer said.

Here are some scam warning signs:

• Bids far lower than comparable ones.

• Credentials or references that you can't verify.

• Special prices available only if you buy that day.

• Only accepts cash, requires a large deposit or the entire cost upfront, or asks for the payment in their name.

• Does not provide a written contract or complete bid.

• Asks you to get the building permit. In most cases, the contractor is required to take out the permit.

• Offers unusually long warranties.

• Wants to do all the work on weekends and after-hours.

• Needs money for supplies. Most contractors will have accounts with suppliers, Diepenbrock said.

Problem-solving tips

If a contractor leaves without finishing a job or the work was not done according to the contract, you have a few options:

• Go into mediation. King, Snohomish and Pierce counties offer free or low-cost mediation through their dispute-resolution centers. Call 206-443-9603, 425-339-1335 or 253-572-3657.

• File a suit against the contractor and the bonding agent to collect on the contractor's bond.

• If you receive a "notice of intent" to file a lien on your property, ask your general contractor for lien release papers from the supplier or subcontractor who sent the notice. Do not make more payments until you have the documents.

Nicole Tsong: 206-464-2150 or ntsong@seattletimes.com