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GILROY — When choosing a contractor for a building project, you should focus on three key aspects: the content of the bid, the content of the company’s referral list and the deposit amount (if any) requested at the contract signing.
Bid content
When going over a bid, it’s important to know what to look for. First, the bid should be legible (preferably typed) to ensure clarity. Second, it shouldn’t simply give a vague sum for the job price; rather, it should include an itemized list of the various items and services to be performed, as well as major materials and appliances. Third, the sum total cost should indicate the contractor’s profit and overhead. Remember, these are always included in the cost, whether they’re accounted for in the final price or cunningly slipped within the numbers. Finally, the bid should include an approximate estimate of your job’s timeframe.
Referrals
Referrals are important because they verify a contractor’s record and give you an idea of what it’s like to work with them. A good referral list will provide references from a variety of phases, including long-term clients, clients whose projects are currently in progress (who can give you an idea of the crew’s dependability) and clients whose projects have recently been completed (who can give you honest opinions of their experiences). You should also make sure all sources are verifiable—it’s easy for a dishonest contractor to falsify references.
Deposit amount
It’s common for a contractor to ask for a deposit in advance of a job, but you need to be aware of the legal limitations to this request. In California, the maximum amount a contractor can collect at the contract signing is $1,000 or 10 percent of the job’s total cost—whichever is less. So, for a job estimated at more than $1,000, a contractor can collect no more than $1,000, and for a job estimated at less than $1,000, the most they can collect is 10 percent of the total projected cost. Once the contract is signed and the work begins, your contractor can ask for more money, but until then, the law states you don’t have to pay more than this allotted amount.