Remember....you get what you pay for!
written by: Muskoka TradeSource
In the last edition, we discussed the process of getting quotes on
your project from potential contractors. This time we’re taking
it one step further and looking at the importance checking the quality
of your contractor – including appropriate insurance coverage,
something that is extremely necessary for both the homeowner and those
working on the site. Once you’ve narrowed your choices
for a contractor down, your next step is to verify the quality of
their work and to ensure that they work under proper insurance coverage
and ethics.
Laurie Campbell of Ed Campbell Construction Ltd. emphasizes the
importance of doing some background research into your proposed
contractor: “A gentleman’s handshake is no longer all
that’s needed to secure a deal; it’s very important
to verify the legitimacy and reputation of a company before signing
anything.”
So talk to friends, neighbours and acquaintances, ask a contractor
to see their references, view some of their previous work to check
quality, and make sure that the company is a reputable one.
Be aware, however, that just as you’re doing background work
on your prospective contractor, they could be doing the same to you.
Some contractors are now doing background checks on clients to verify
their reputation when it comes to payment. “Attitudes
about payment have changed,” says Campbell. “Both parties
need to make sure that a payment schedule has been put into place.
Have a discussion and agree on whether payments will be made in
regular installments, or if invoices will be made once a month.”
In addition, you need to make sure that the company / contractor
you hire has all of the required insurance coverage. Says Les Bell,
State Farm Insurance Agent, “Always verify that the contractor
has the appropriate liability and disability insurance; otherwise,
the homeowner is responsible for any damage, loss of hours, injury,
etc.”
Homeowners need to understand the importance of proper insurance
coverage. If, for example, a contractor or one of his workers left
some tools at the work site, and a child playing with or around
the tools gets injured, one would expect the company to be held
responsible. However, if the company isn’t properly insured,
the onus is shifted and becomes the responsibility of the homeowner.
Insurance coverage doesn’t stop with the contractor. All
trades and subtrades hired on by the contractor must also have their
own insurance.
Not only does everyone involved in working on the project need
appropriate coverage, but so does the property. Says Bell, “It’s
a common misconception that people don’t insure property during
construction. In fact, proper coverage should be in place even before
excavation begins.”
No matter what size the project is, whether it’s a minor
repair, an addition, or the construction of an entire new structure,
your insurance company should be aware of it. To find out what your
responsibilities as a homeowner are, contact your insurance agent
before any work is done and they will inform you of the appropriate
coverage needed for the project.
You don’t want to be held responsible for any injuries, loss
of work time or loss of pay, especially if it’s something
that can easily be avoided. “Only employ contractors with
proper coverage and make sure you’ve got the necessary coverage
on your property,” repeats Bell. It’s always better
to be safe than sorry.
Related Articles
<<--Home Improvement
Tips and Articles Main Index |
Contractor Directory
