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.

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