Take These Important Steps to Avoid Becoming a Victim
Joshua L. Woods, Esq.
Many of us love watching home renovations on television. Whether the redos are taking place at a beach-house bungalow, a tiny apartment, or a Victorian mansion, it’s always entertaining to live vicariously through people remodeling a house or building their dream home.
But what happens when opportunity knocks in real life, and you have the chance to create a space of your own design? Perhaps you envision a beautiful, blue-tiled backsplash against white kitchen cabinets, heated bathroom floors, or a cozy living room with a gas fireplace. With a reliable and trustworthy contractor, all things are possible.
Unfortunately, not all contractors are reliable and trustworthy. Someone close to me recently experienced firsthand the horrors of hiring the wrong renovation company. My friends lived to tell the tale, but along the way, their family suffered through considerable delays, shoddy work resulting in added expenses and additional repairs, and the all-consuming worry of working with an uncommunicative contractor. Here is the story of a ‘craftsman’ remodeling company whose primary craft proved to be collecting payments for unperformed work.
It all began when my friends, first-time homebuyers, hired a local contracting company to perform a complete restoration and remodel of a charming 1930s colonial-style house. After interviewing five separate contractors, my friends decided to work with ‘Craftsmen’ (the company’s name has been changed to protect their anonymity). The contractor was extremely charismatic, proposed a comparable bid, and seemed to have just the right can-do attitude needed to complete the project. Craftsmen provided three references who, when contacted, sang the company’s praises. Craftsmen also had great online reviews. My friends decided to move forward and agreed to the terms of a proposal from Craftsmen, officially hiring the company for their project.
“They had to live through an enormous amount of stress, the upheaval of an unfinished living space, hideously long delays, and considerable additional expenses. You can learn from their mishaps.”
Craftsmen requested a down payment, and upon receiving the funds, the first step of the project — demolition — was scheduled. Pursuant to the payment schedule on the written proposal, the second payment would be due on demolition day, the third would be due when rough plumbing was installed, the fourth upon installation of rough electrical, the fifth upon installation of drywall, and the sixth and final payment would be due when the project was completed.
To their chagrin, my friends soon discovered the problem with this payment schedule: the majority of the fees would be paid prior to the rebuilding. That is, four hefty payments were required before the demolished spaces would be fully rebuilt.
At first, the contractor completed the demo work on schedule, but then they went silent. The house sat in disarray, unfinished, for months after the first payments were made. Nothing was accomplished properly. The plumbing was installed incorrectly, there was an old toilet left in the dining room for months, the trim was unfinished, the hardwood floors were ruined, exposed electrical wires dangled from the walls, and the list went on. My friends finally decided they could no longer tolerate the situation and made the decision to fire Craftsmen.
For anyone considering renovations, keep the following steps in mind, which can help protect you from a similar experience:
• Verify the contractor is in good standing. Ask for the contractor’s business-license number and research it on the state’s website to ensure there are no lawsuits against the company. You should also search the Better Business Bureau for complaints.
• Look into the contractor’s partners and vendors. Request a copy of the business license for all subcontractors who may work on your project.
• Contact references. Before hiring a contractor, always ask for multiple references and contact as many as you can. Listen closely to what they say. When speaking with references, you will certainly wish to inquire about the ‘big stuff,’ including satisfaction with the final project and pricing, but it may also be wise to inquire about smaller details including punctuality, cleanliness on the job site, responsiveness to calls and requests, etc. Looking back, my friend should perhaps have seen a red flag when Craftsmen provided only three references. A reputable company should be able to provide evidence of a great many satisfied customers.
• Have an attorney review the fine print. Another red flag should have been the lack of a formal contract at the outset and the lack of itemized billing during the project. Craftsmen provided only a written proposal, which is not sufficient for a project of this magnitude. When hiring a contractor, be sure to protect yourself by having a qualified attorney review all documents, proposals, and contracts before you sign. All contracts should include a clear payment schedule in which the final payment is typically 25% of the entire fee, provided only upon completion of the project and a satisfactory final walk-through with the contractor. Once hired, all communication should be in writing, and you should request regular written updates from the contractor, so there is a clear understanding of the status of work completed and work to be done.
• Document the process. As the saying goes, a picture is worth a thousand words, and that is certainly true where renovation projects are concerned. Be certain to take many photos of your project, including shots of the site before, during, and after the renovation is complete.
My friend and his family were ultimately able to pivot their renovation to another contractor, who repaired Craftsmen’s mistakes and finished the project. The family is now happily enjoying their beautiful, freshly remodeled home.
If my friends had only done more diligent research and consulted with an attorney before working with Craftsmen, they could have potentially avoided the entire awful experience. Instead, they had to live through an enormous amount of stress, the upheaval of an unfinished living space, hideously long delays, and considerable additional expenses. You can learn from their mishaps and use the steps above as important preventive measures. They may be your — and your house’s — saving grace. v
Attorney Joshua L. Woods is an associate with Bacon Wilson, P.C. and a member of the firm’s business, corporate, and commercial law team. He has extensive experience in matters of business law, including all aspects of corporate formation, franchising, joint ventures, leasing, and business and commercial litigation. He is licensed to practice in both Massachusetts and Connecticut; 413-781-0560; [email protected]