DO'S AND DON'TS FOR THE REMODELING HOME OWNER
- All general contractors must have references and you should check these references in
addition to the BBB and the State of Alabama Home Builder's Licensure Board.
- All contractors must have a license issued from the Alabama
Home Builders Licensure Board in addition to county/state and city business licenses. They should also be insured.
- All contractors
must acquire a building permit from the inspection services department of the municipality you reside in and this permit must be posted
on the job site so as to be observable from the street. Any general contractor who asks you to acquire a permit cannot obtain one
themselves. Always call the state to ensure the license is current. Always ask for a copy of their insurance coverage.
- NEVER pay any
money in advance and ALWAYS obtain a detailed contract which specifies the scope of the work to be done and the materials to be used.
Make sure the name on the contract is the same as the name on the state license. Any contractor, who asks for money in advance, cannot
obtain credit and does not have any cash flow. The payment schedule in the contract must correspond to specific milestones of work
which have been accomplished and always insist that the final 10% is not paid until completion to include your punch list.
- The Inspection
Services of your municipality and the state work for you. You are paying their salaries so they are there when you have questions.
Never hesitate to call them.
- Bonding refers to Surety Bonds only. A Surety Bond is essentially a guarantee to the owner that money
has been deposited into an escrow account with an Insurer which the builder will forfeit if the work is not completed. This is not
necessary if the rules above are followed and I have never had to acquire a Surety Bond unless the project exceeded $1,000,000.