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Better Business Bureau Tips:

BETTER BUSINESS BUREAU suggests after you have chosen the CONTRACTOR who you wish to do your renovations, that you have a written contract with the company.

SPECIFICATIONS of the written CONTRACT:

  • Description - type of work to be completed.
  • Cost of work - suggest the final amount not exceed $xxx if hourly wage is quoted.
  • Date - to start / finish work.
  • Standard of work - electrical, plumbing, heating, etc. pass inspection.
  • Materials - cost of materials and who pays for the materials.
  • Warranty.
  • Liability insurance - ask for the name of their agent, name of insurance company, and the policy number. Call the agent to confirm that the insurance is valid.
  • W.C.B. - The company must have a clearance letter and the consumer should ask to see it. It would be advisable to check out WORK SAFE BC. It is up to you as the homeowner to verify this protection yourself.
  • Defaults - What happens if either the contractor or the consumer defaults on permits, licence and sub-contractors licence. Who is responsible for payment.
  • G.S.T. - should be clear if it is or isn't included.
  • All changes should be in writing signed by both parties and should be specific.
  • Contracts are available at the CANADIAN HOME BUILDERS ASSOCIATION, for an example of what your contract should include.
  • Ask for references - check them out yourself.
  • The contract should be written on company letterhead with start and finish date, cleanup if applicable, quality of materials, warranties, guarantees & method of payment.
  • Cost of work with % down can vary (10 - 30% down is usual) to start, and 10% of the total contract price must be withheld for 55 days upon completion of contract. This procedure is to prevent liens being placed on the home by sub-contractors (if they are used by your contractor) and/or for wages by employees. This should be discussed with both parties and entered on the contract. Also both parties should discuss how the money should be held. If the contract is a large amount - it could be held in trust with a lawyer.
  • If contract is signed in the home - you may have 10 days to cancel the contract. If the company contacts you directly and the contract is signed in your home, the 10 day cancellation clause is in effect. If you contact the company directly, even though the contract is signed in your home, there is no cancellation clause. (government regulations override cancellation clause on contract - eg. if it says 7 days - 10 days still applies) Because of the option to cancel, it is suggested that work not be started immediately.

To Cancel The Written CONTRACT:

To cancel the contract, you would need to notify the contractor by registered mail and keep the receipt. For more information contact the Community Services Branch at 387-3045.
* BEWARE OF QUICK ESTIMATES & HIGH PRESSURE TACTICS. TAKE THE TIME TO MAKE AN INFORMED DECISION.

Why Home Renovation Projects Get "out of control":

Some home owners accept a renovation contractor's proposal without checking out the contractor's "TRACK RECORD" first. This process involves a few simple steps to determine if the contractor has the skill and experience needed and a history of satisfied customers. Making sure that a contractor consistently delivers professional results to customers is the best way to avoid hiring someone who "seems like a nice guy" but turns out to be the wrong person for the job. Check the renovation contractors references, talk to previous clients, and look at renovation projects completed by the contractor.

 
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