How To Keep a Home Renovation Free of Trouble

When homeowners notice things — flooring that needs upgrades, paint colors that need to be spruced up, or roofing that needs replacing — that means business for licensed contractors.

When choosing your contractor, do so carefully and ensure you have a construction contract for your home renovation project. If things go wrong, and you need to take legal action, contact a construction litigation attorney for legal advice.

Legal Action for Home Improvement and Remodeling Projects

“The legal remedies are there, but almost always they don’t leave you whole,” says Ivan A. Sarkissian of McConaughy & Sarkissian. “That’s the worst-case scenario — to sit in my office and have to sort out how to get your money back.”

“Projects tend to be more complicated than you might think, even when compared to commercial and industrial work,” says James T. Dixon, a construction litigator at Brouse McDowell in Cleveland. “Unlike commercial and industrial work, the emotions involved are different and can be much more intense, and those things combine to create a situation where everyone should proceed carefully.”

“Homeowners should ensure that any contractor they engage is reputable, licensed, bonded, and insured,” urges Todd A. Levine, a business litigator in Miami, Florida, who sees problems arise when homeowners hire “fly-by-night” contractors who take the money, then fail to do the job properly — or at all.

What To Look For in Construction Contractors

Tiffanie D. Stasiak, with the Kutak Rock firm in Denver, suggests asking how long the contractor has been working with the subcontractors and talking to the subs beforehand and throughout the project.

That’s because the most likely problems to arise on a home remodel are as follows:

1. Negligent and/or unfinished work
2. Nonpayment of subcontractors or material suppliers by the contractor, in which case property owners can get stuck paying double or end up with liens on their property

“Go visit a homeowner who had a half-finished project and spent all of their money,” she says. “It’s one of your bigger, if not biggest, assets, and you should treat it seriously and do your due diligence.”

Have a Solid Construction Contract — And Review It

The first thing to keep in mind is your budget. “Set a budget and plan to stick to it, and also plan to have some reserves,” Dixon recommends. Renovation cost overruns, he cautions, almost always pop up. Also, schedule the home improvement work at a time that works well for you. Finally, pay close attention to the workmanship.

Subcontractors are supposed to notify owners that they will be working on their project. “The notice that’s provided says, ‘Make sure I’m getting paid, because you may pay the contractor, and if he doesn’t pay me, you may have to pay twice,'” says Scott D. Lehman with Eisenberg Lehman in Coral Gables.

Carrie Rodgers of Moye White in Denver has been solving construction disputes for more than 30 years. More than half the homeowners who contact her office with a problem either don’t have a contract, didn’t sign the contract, or never read it.

“The best investment you can make before you go into a major remodel is to have a construction lawyer review and revise the agreement,” she says.

Be Choosy About Your Contractor

“Selecting the right contractor is absolutely the most important part of the process, and there are a couple of aspects to that,” he says. “You have to select a general contractor that’s a good fit for your personality. Contractors who are very good at their work might not necessarily be very good at the sales aspect of the job or the interpersonal aspect of the job.”

Dixon advises checking building permits in your city to find other people who have hired the contractor. Check online records at local courthouses to find out if the contractor has been involved in litigation. “Some litigation is part of doing business with contractors,” he notes. “If there’s a lot recently, then that’s the kind of stuff you want to know and ask questions about.”

“Think twice about contractors who won’t take the time to answer your questions, provide references that you can’t verify, use high-pressure sales techniques — for example, a special price but only if you sign today — won’t provide a written contract, or give you an offer that sounds too good to be true,” says Joshua Lane, a construction litigator at Ahlers Cressman & Sleight in Seattle.

Before you choose a contractor, decide exactly what you want for your house renovations. “You can ask contractors to provide ideas,” Lane says, “but really nailing down what it is that you really want — types of flooring or hardware, or the layout — will not only help you get what you actually want, but will help the contractor create it for you.”

Mechanic’s Liens

Another protection available in some jurisdictions is the homeowner’s defense statute against mechanics’ liens. Typically, if subcontractors don’t get paid, they put a mechanic’s lien on the property to recover what’s owed.

“There are a lot of great defenses available to people if you are using a construction lawyer from the very beginning,” Rodgers says.

Understand the Contract

Lane recommends getting multiple bids and comparing the contract terms. Ask about their schedule, the possibility of delays, and their experience with the work you need. Also, find out if the bid is good even if the price of the materials goes up before the renovation process begins.

“After balancing the list of factors, I’d negotiate with the contractor I like best to get the most favorable terms possible,” Lane says. “[And] don’t be afraid to ask for references and call them.”

Before signing a contract, make sure you understand all the details. An experienced construction attorney can help with that.

“If there’s something in the contract you don’t understand, ask,” Lane says. “Don’t be afraid to appear inexperienced or foolish; it’s far more foolish not to ask and find out later when there’s a problem, and the term is very bad for you. Having an attorney review a contract can be a solid insurance policy and valuable education to avoid pitfalls on your specific project.”

Here are some things to consider when reading a contract, according to Lane: “What happens if you want to add to the scope of work? Are you paying in one lump sum, or does the contractor bill on an hourly rate?” If the contractor uses subcontractors, get their names and check them out, too. Also, find out what happens if a dispute arises between you and the home improvement contractor.

Get Clear on Project Timelines and Expect Delays

Construction lawyer Jason M. Rodgers-da Cruz, with Siegfried Rivera in Coral Gables, says he sees a lot of homeowners get upset about vastly different quotes — often a signal that the scope of the home renovation project has not been well-defined.

“Owners have a general idea of what they want, but they don’t know how to put the pieces of the puzzle together,” he says. “One way to help with that is to hire an architect or design professional.”

Dealing with Negligent Construction Work

When it comes to negligent contractors’ work, Tessa R. DeVault says that the time, effort, and attorneys’ fees required to resolve cases of negligent contractors’ work often outweigh the benefits of litigation.

“There’s a lot of construction demand, so the supply is trying to keep up,” DeVault says. “People can find themselves in situations where contractors are potentially cutting corners or trying to rush projects because there is so much work to be done that things get missed. My general advice is to try to work together before getting lawyers involved. Construction is an imperfect process, and communication is crucial. It’s more affordable for all parties to work through issues during construction instead of down the road.”

“Where I see people get into problems is they pick somebody that gives them the price they want to hear without considering why that price is significantly lower than everybody else’s, or they rush into a relationship with a contractor and don’t define the terms in writing,” Sarkissian says. “That’s how you end up in my office.”

When To Hire an Attorney

It’s a good idea to consult an experienced attorney, at least to have them prepare or review your contract. “I tend to think that people should be asking for legal help more often than they do, because this is really a situation where an ounce of prevention can be worth a pound of cure,” Dixon says.
Visit the Super Lawyers directory to find a construction litigation attorney in your area for legal advice.