Frequently general contractors sub out much of the work you hire them to perform. In addition they may have little in the way of assets other than a work van. The point I am trying to make is that the money you pay a contractor should equal the percent of work completed, and closely approximate a pre-agreed schedule of values for components of the job. If there are six major components of the job, there should be six corresponding agreed upon values for that work. Frequently if there is a dispute later on and you have invested more money in the job than work performed you will have no leverage. At that point screaming and yelling will not get your job finished.
Another key to protecting yourself is asking for receipts from the vendors or suppliers the money is earmarked for. Another equally valuable tool is requesting a waiver of lien from the vendor or supplier who was supposed to receive the money. As an example if you pay $10,000.00 to cover lumber and sheetrock, you don't want to find out later your property has a lien placed on it from that supplier for non-payment. A waiver of lien covers that possibility. A waiver of lien is a simple one page form that is readily available.
Holding a 10% retainage on each portion of the work is also an acceptable means of protecting yourself. For instance work may be completed, such as a new sewer line. The installation may function perfectly, but how do you know if it was signed off by the local inspection division? Holding a retainage until all required sign-offs are in your possession can alleviate a lot of aggravation later on.
The last point I will make should have been the first point. First and foremost verify the contractor you are considering hiring has his own license for that named firm, demand certificates of insurance, and references. Search on-line and see what the internet has to say about the company you are considering hiring. Being careful and cautious does not mean being rude antagonistic. Be professional, courteous, and exact in your dealings. You are not hiring a contractor to do them a favor, it is business and do not be shy about protecting yourself.
David Balkan is the VP of Balkan Sewer and Water Main Service.
Balkan Plumbing is the largest sub surface plumbing company in NYC performing over 2,000 sewer and water main installations annually. As a family run business in operation for over 50 years our 10 year guarantee means we continue to stand by our work after the job is done.
Joseph L. Balkan Inc.
130-01 Jamaica Avenue Richmond Hill, NY 11418 | Phone: (718) 849-0900 | Espanol (718) 849-0900
Fax: (718) 849-9570 l info@balkanplumbing.com
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