Once You Hire a Contractor

Protecting Yourself and Your Investment After Hiring a Contractor

Once you’ve hired a contractor, taking precautionary steps is essential to protect your investment, ensure a smooth process, and avoid potential disputes. Proper documentation, detailed contracts, and careful planning will help you stay in control of your project and avoid costly mistakes.

1. Secure All Necessary Documents Before Work Begins

Complete and Accurate Contract Documents

Before any work starts, ensure you have:

  • A signed contract outlining all agreed-upon terms.
  • A complete set of construction plans showing exactly what will be built.
  • Specifications related to the plans, which should be reviewed by a licensed architect or engineer.

Tip: No work should begin until all documents are finalized and approved by your architect, attorney, or trusted advisor.

2. Obtain the Proper Permits

If your project requires a building permit, ensure that:

  • The contractor obtains the permit, not you.
  • The permit is posted at the job site before work begins.

By allowing the contractor to pull the permit, you ensure that they are responsible for meeting building code requirements.

3. Keep a File of All Project-Related Documents

Maintaining organized records will help you track progress, verify payments, and resolve any disputes. Your file should include:

  • Signed contract and any signed change orders
  • List of all subcontractors and suppliers (with contact information)
  • Plans and specifications
  • Copies of building permits and inspections
  • Records of payments (including canceled checks or receipts)
  • Daily work logs (recording what work was completed and time spent on the job)
  • Delivery receipts for materials
  • Lien releases from subcontractors and suppliers

Tip: Regularly compare lien releases to your payment records to confirm that all subcontractors and suppliers have been paid.

4. Ensure All Changes Are in Writing

Changes to the original contract can add significant costs—especially once construction has begun.

  • Keep changes to a minimum by planning carefully.
  • All change orders should be in writing and signed by both you and the contractor before work proceeds.
  • Document the cost and timeline impact of each change to avoid disputes later.

5. Plan for Inconveniences

Ask your contractor about potential disruptions during construction and plan accordingly. For example:

  • Will water, electricity, or HVAC be temporarily shut off?
  • Will parts of the home be inaccessible?
  • What safety precautions are needed if you remain in the home?

6. Proper Planning is Crucial for Cost-Effective Remodeling

A well-planned improvement project can add value to your home while meeting your lifestyle needs.

Key Planning Steps:

  • Assess your property and identify necessary repairs and desired improvements.
  • Think long-term—how will the space be used in the future?
  • Work with a professional remodeling contractor to explore your options and establish a realistic budget.
  • Review your homeowner’s insurance policy to ensure adequate coverage for the increased value of your property.

7. Balance Design and Functionality

When adding or remodeling a space, consider both design and functionality:

  • Intended use of the space (e.g., home office, guest room, entertainment area)
  • Flow and accessibility
  • Placement of electrical outlets, phone jacks, and cable hookups
  • Lighting requirements (natural and artificial)
  • Current and future storage needs
  • Luxury features or high-end finishes

Consult a Professional

A qualified remodeling contractor or design professional can provide valuable input on:

  • Space optimization
  • Cost-effective solutions
  • Material selections that balance durability and aesthetics

Final Thoughts

By taking proactive steps to secure contracts, track progress, and plan effectively, you can protect your investment and ensure a successful construction or remodeling project.

If you have questions or need assistance, consult a professional contractor, architect, or attorney before proceeding.