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| Remodeling |
Buying a House and Making It a Home
While house hunting in the Bay Area, you and your spouse have found the perfect home. It’s well-situated close to a high-rated school district, it’s within a decent commute to your work, it has a nice pool and landscaped backyard that really made a lasting impression and it has the quintessential Victorian architecture for which San Francisco is famous. Since its an older home, it will require some remodeling, but it’s available for immediate occupancy and it’s not enough to stop you from moving in. Find out more in this section about the best ways to find a remodeling contractor, the questions to ask when interviewing a contractor and what to include in the remodeling contract. Also find out which remodeling projects in the Bay Area provide a great return on investment.
According to the National Association of the Remodeling Industry (NARI) (www.nari.org), the remodeling market is a $275 billion industry and is expected to continue to experience significant growth. It is estimated that more than 1 million homes per year undergo major renovation or remodeling. In the Bay Area, there are many professional builders and remodelers to select from, and most are members of local chapters of the National Association of Home Builders (NAHB), an organization of professionals in the residential construction industry.
Working With Contractors in California
In California, a builder, remodeler or contractor may not construct new homes or engage in remodeling projects that change the living area of the home or that cost more than $500 for interior renovations without first registering with the Contractors State License Board (CSLB) (www.cslb.ca.gov). The CSLB protects consumers by licensing and regulating California’s construction industry.
There are about 300,000 licensed contractors in the state, in 43 different licensing classifications.
In addition to educating consumers about contractors and construction law, CSLB activities include administering examinations to test prospective licensees, issuing licenses, investigating complaints against licensed and unlicensed contractors, issuing citations, suspending or revoking licenses and seeking administrative, criminal and civil sanctions against violators. In Fiscal Year 2011–12, CSLB helped recover nearly $36 million in ordered restitution for consumers.
California takes contractor licensing very seriously. The CSLB’s Statewide Investigative Fraud Team (SWIFT) works to eliminate unlicensed contractors working in California. Undercover sting and sweep operations are conducted weekly around the state, so SWIFT encourages consumers to report unlicensed activity.
Top 10 Tips When Hiring a Contractor
The CSLB wants your remodeling project to go as smoothly and as professionally as possible, so it offers the following Top 10 tips to know when hiring a contractor or remodeling professional:
Contractor Selection
At this point, you’ve had a chance to review the improvements and additions you’re interested in making to your home. Now, you need to begin the contractor selection process, which is the most important decision in a remodeling project. Nearly half of all projects signed by a remodeling contractor are the result of client referrals. An additional 22 percent of jobs are the result of word-of-mouth referrals. By following these guidelines, you will be better prepared to make an informed decision that best suits your needs.
Employ a home improvement contractor with an established business in your area. Local firms can be checked through references from past customers in your community or through local organizations. Local remodelers are compelled to perform quality work that satisfies their customers so their business will survive. Following are a few suggestions for finding local contractors:
When you meet with a potential contractor, ask for the following items:
When you solicit bids from several different home-improvement contractors, make sure they are bidding on the same scope and quality of work. Discuss variations in bids and beware of any bid that is substantially lower than the others.
While house hunting in the Bay Area, you and your spouse have found the perfect home. It’s well-situated close to a high-rated school district, it’s within a decent commute to your work, it has a nice pool and landscaped backyard that really made a lasting impression and it has the quintessential Victorian architecture for which San Francisco is famous. Since its an older home, it will require some remodeling, but it’s available for immediate occupancy and it’s not enough to stop you from moving in. Find out more in this section about the best ways to find a remodeling contractor, the questions to ask when interviewing a contractor and what to include in the remodeling contract. Also find out which remodeling projects in the Bay Area provide a great return on investment.
According to the National Association of the Remodeling Industry (NARI) (www.nari.org), the remodeling market is a $275 billion industry and is expected to continue to experience significant growth. It is estimated that more than 1 million homes per year undergo major renovation or remodeling. In the Bay Area, there are many professional builders and remodelers to select from, and most are members of local chapters of the National Association of Home Builders (NAHB), an organization of professionals in the residential construction industry.
Working With Contractors in California
In California, a builder, remodeler or contractor may not construct new homes or engage in remodeling projects that change the living area of the home or that cost more than $500 for interior renovations without first registering with the Contractors State License Board (CSLB) (www.cslb.ca.gov). The CSLB protects consumers by licensing and regulating California’s construction industry.
There are about 300,000 licensed contractors in the state, in 43 different licensing classifications.
In addition to educating consumers about contractors and construction law, CSLB activities include administering examinations to test prospective licensees, issuing licenses, investigating complaints against licensed and unlicensed contractors, issuing citations, suspending or revoking licenses and seeking administrative, criminal and civil sanctions against violators. In Fiscal Year 2011–12, CSLB helped recover nearly $36 million in ordered restitution for consumers.
California takes contractor licensing very seriously. The CSLB’s Statewide Investigative Fraud Team (SWIFT) works to eliminate unlicensed contractors working in California. Undercover sting and sweep operations are conducted weekly around the state, so SWIFT encourages consumers to report unlicensed activity.
Top 10 Tips When Hiring a Contractor
The CSLB wants your remodeling project to go as smoothly and as professionally as possible, so it offers the following Top 10 tips to know when hiring a contractor or remodeling professional:
- Hire only state-licensed contractors.
- Check a contractor’s license number online at www.cslb.ca.gov or by calling (800) 321-2752.
- Get at least three bids.
- Get three references from each bidder and review past work in person.
- Make sure all project expectations are in writing, and only sign the contract if and when you completely understand the terms.
- Confirm the contractor’s workers compensation insurance policy for employees, and ask about liability insurance to cover any property damage.
- Never pay more than 10 percent down or $1,000, whichever is less. Don’t pay in cash.
- Don’t let payments get ahead of the work.
- Keep a job file of all papers related to your project, including documentation of all payments.
- Don’t make the final payment until you’re satisfied with the job.
Contractor Selection
At this point, you’ve had a chance to review the improvements and additions you’re interested in making to your home. Now, you need to begin the contractor selection process, which is the most important decision in a remodeling project. Nearly half of all projects signed by a remodeling contractor are the result of client referrals. An additional 22 percent of jobs are the result of word-of-mouth referrals. By following these guidelines, you will be better prepared to make an informed decision that best suits your needs.
Employ a home improvement contractor with an established business in your area. Local firms can be checked through references from past customers in your community or through local organizations. Local remodelers are compelled to perform quality work that satisfies their customers so their business will survive. Following are a few suggestions for finding local contractors:
- Local Chapters of the NAHB. Explore the website of the Building Industry Association (BIA) of the Bay Area (www.biabayarea.org) to find searchable databases of NAHB-member professional builders located in the Bay Area.
- Local Chapters of NARI. The Bay Area has several local chapters of NARI that provide a great resource for remodeling projects. At their websites, click on Find A NARI Pro and select a professional by specialty to find local professional perfect for your project. Following are the chapters available in the Bay Area depending on your area of residence:
- San Francisco Bay Area NARI: (415) 391-2886, www.sfbanari.org
- NARI of Diablo Valley: (925) 289-8328, www.naridiablovalley.org
- NARI of Silicon Valley: (408) 559-4996, www.narisv.org
- North Bay NARI Builders Roundtable: (650) 960-3362, www.northbaynari.org
When you meet with a potential contractor, ask for the following items:
- Current copy of his license (Call or visit CSLB at www.cslb.ca.gov to verify compliance with the law)
- Copy of the remodeling contractor’s certification of insurance for the name of his or her insurance agency to verify coverage (Most states require a contractor to carry workers compensation, property damage and personal liability insurance. Make sure the contractor’s insurance coverage meets all the minimum requirements.)
When you solicit bids from several different home-improvement contractors, make sure they are bidding on the same scope and quality of work. Discuss variations in bids and beware of any bid that is substantially lower than the others.
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