asphalt, blacktop, tar & chip contractor hiring guide...

Asphalt, Blacktop, Tar & Chip Contractor Hiring Guide & Checklist© Copyright 1993 - 2012 Tim Carter, Builder, Inc. AsktheBuilder.com

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Driveways don’t have to be just plain concrete nor blacktop. Today’s drivewayscan have faux finishes. For an eye-popping drive, try a tar and chip driveway.Whatever type of asphalt, blacktop or a tar & chip driveway you decide on, thisContractor Hiring Guide & Checklist will make sure you get a professional to dothe work.

There are a series of articles, several included right inside this document, tohelp get you up to speed on the many aspects of remodeling and other areas,such as finding that professional contractor, how deal with payments andchange orders. Click on the titles to read these articles. Other articles titles willtake you to the AsktheBuilder.com website to read the articles.

Below are the links to the various sections of this Contractor Hiring Guide & Checklist. Click on themto move directly to the area of the Contractor Hiring Guide & Checklist you want.

Asphalt, Blacktop, Tar & Chip ChecklistJob Cost BreakdownReferencesContractor Hiring Guide & Checklist Helpful HintsHow To Find a ProAsphalt & Blacktop Column LinksVideo LinksGeneral Planning Article LinksPayment Articles

But first, here are links to four exclusive Contractor Hiring Guide & Checklist videos that will help youwith Finding a Pro, Contracts, Payments and Change Orders.

Finding a Pro is notalways done on theInternet or using thephone book. Tim explainsa better method.

After the bids are in andthe contractor selected,what should be in thecontract? Tim outlineseight item that must be inyour contract.

Payments are important.When do you make themand how much? Timexplains three importantconcerns regarding yourpayments.

Change Orders can costmore then just additionalmoney. They can delaythe whole project.Discover what to doahead of time.

http://www.askthebuilder.com

http://http;//askthebuilder.com

http://www.askthebuilder.com/FlashVideos/FindPro.html

http://www.askthebuilder.com/FlashVideos/Contracts.html

http://www.askthebuilder.com/FlashVideos/Payments.html

http://www.askthebuilder.com/FlashVideos/ChangeOrders.html


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Homeowner: ___________________________

Address: ______________________________

City/State/Zip: __________________________

Phone: _______________________________

Email: ________________________________

Contractor:_____________________________

Address: _______________________________

City/State/Zip: __________________________

Phone: ________________________________

Email: _________________________________

Contractor's License Number # (where applicable):________________________________________

Project Location (Jobsite Address):_____________________________________________________

Date Bid Submitted:____________________ Date of Plans & Specifications:__________________

CHECKLIST

Do you intend to remove the existing driveway material? Yes ~ No ~

Do you intend to resurface over the existing driveway? Yes ~ No ~

If you resurface over the existing driveway, what will you do to make sure that thenew blacktop is even with existing paved surfaces such as garage floors andsidewalks? Briefly describe what you will do to insure that there will be no'humps' at these locations:

If you plan to resurface over the existing driveway, will you clean the existingdriveway and trim all grass and vegetation from the edges?

Yes ~ No ~

If you plan to resurface over the existing driveway, do you plan to level anyexisting low spots?

Yes ~ No ~

If you plan to resurface over the existing driveway, do you plan to install a tackcoat?

Yes ~ No ~

Will you re-grade and adjust the base material if you intend to remove theexisting driveway material?

Yes ~ No ~



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Do you plan to add additional base material? Yes ~ No ~

If yes, approximately how much? ______cu. yds.

Does your quotation include the labor and material for this extra base material? Yes ~ No ~

What type of mix of blacktop will you apply? (Please insert state specificationnumber)

How thick will the new blacktop be after compaction? ______ inches

Will you install one layer of blacktop or two? Yes ~ No ~

If the job is new construction or involves adding a new section of blacktop, howdeep below the existing finish grade will you excavate?

______ inches

What type of base material do you plan to install?

What will the base material thickness be after compaction? ______ inches

What type of blacktop material will you use for the finish surface? (Insert statespecification number)

How thick will the finish material be after compaction? ______ inches

If the job requires any patching, do you intend to seal the edges of the patchwhere it contacts the existing blacktop driveway surfaces?

Yes ~ No ~

If yes, what type of material will you use to seal the patches?

How many days should I wait before driving on my new blacktop or tar & chip? _______ days

How long should I wait before I seal my new blacktop? ______ year(s)

Should I seal my blacktop every year? Yes ~ No ~

If no, how many years between coats? ______ year(s)

If a Building Permit is required for this job, will you obtain it? Yes ~ No ~



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If this installation involves tar & chip, will you install a minimum of ½ gallon of tarper square yard?

Yes ~ No ~

Will you install the tar & chip surface in conjunction with the Asphalt Institute’sES-11 & ES-12 guidelines?

Yes ~ No ~

Some companies use sub-contractors (Subs) to install their products. Subssometimes are not adequately covered with proper liability and Workman’sCompensation insurance. They often get paid a fixed sum of money which drivesthem to work faster. Subs are often not as responsive when a problem happensat a later date. Employees of the company are often a better way to go. Who willperform the work on my house?~ Own employees ~ Sub-contractor ~ Combination

Will you remove all debris from the jobsite? Yes ~ No ~

What is the length of your warranty? _____ year(s)

Does it cover all labor and material? Yes ~ No ~

OPTIONAL ADDITIONAL NOTES



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JOB COST BREAKDOWN

Materials

Permit

Demolition and Debris Removal

Excavation

Gravel Base

Asphalt

Clean-up

Labor

Total Labor

Insurance

Workman’s Compensation

Unemployment Tax

Overhead

Profit

TOTAL JOB COST:



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PAYMENT SCHEDULE

Excessive advance or periodic payments before or during the work is completed often put ahomeowner at risk. The homeowner basically become a lender. This is especially true if the job doesnot require any special or custom ordered materials at the beginning of the job. A fair paymentschedule is one that allows the homeowner to pay only for labor and material that has beencompleted in a satisfactory manner. Periodic payments can occur every 3 - 4 days for small jobs oreach week or month for large jobs. On large jobs, the amount of money paid out at any given timeshould not exceed the total sum of the items listed in the above cost breakdown plus a proportionateamount of contractors overhead and profit for completed in-place work. A homeowner should nothave to pay full price for work that is unsatisfactory or incomplete.

Do you agree with this philosophy? Yes ~ No ~

If “Yes”, please complete the Payment Schedule on the next page.



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PAYMENT SCHEDULE

First Payment: _________% of Total Job Cost.

To be paid when the following work is complete:

___________________________________________________________________________

___________________________________________________________________________

Second Payment: _________% of Total Job Cost.

To be paid when the following work is complete:

___________________________________________________________________________

___________________________________________________________________________

Final Payment: _________% of Total Job Cost.

To be paid when all work is complete and satisfactory and all debris is removed from jobsite.

INSURANCE DOCUMENTATION

Contractor's Workman's Compensation Risk number or Private Policy number and Carrier number:______________________________________________________________________________(PLEASE ATTACH A COPY OF YOUR CURRENT STATE CERTIFICATE OR PRIVATE CARRIER CERTIFICATE)

Contractor's Liability Insurance Company and Policy number:______________________________________________________________________________

(PLEASE ATTACH A COPY OF CERTIFICATE OF INSURANCE)

ANTICIPATED STARTING DATE:____________________________________________________

PROJECTED COMPLETION DATE:__________________________________________________

REFERENCES (List only jobs of similar scope and nature)



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Job completed approximately 4 years ago:

Name:_________________________________________________

Address:_______________________________________________

Phone Number:__________________________________________

Job completed approximately 2 years ago:

Name:_________________________________________________

Address:_______________________________________________

Phone Number:__________________________________________

Job completed within the past 60 days:

Name:_________________________________________________

Address:_______________________________________________

Phone Number:__________________________________________

Bidding Contractor's Signature: ____________________________________________________

Date:____________________

OPTIONAL COMMENTS

End of Checklist



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CONTRACTOR HIRING GUIDE & CHECKLIST HELPFUL HINTS

Thanks for purchasing one or more of my Contractor Hiring Guide & Checklist products. I am quitesure you will be pleased with how they help you find a professional - or more importantly - allow youto quickly spot a scoundrel!

You will run into some resistance from contractors when they see the Contractor Hiring Guide &Checklist(s). Some will reject it entirely. That is OK. Be patient and continue to call contractors untilyou find one who accepts the Contractor Hiring Guide & Checklist at face value - a document thatprotects both you and the contractor.

USE TIPS

1. Insist that all questions be answered. Incomplete answers can lead to incomplete jobs.

2. Test the contractor’s phone number on several occasions. Do you get a machine, voice mail ora human? Humans solve problems, not machines. Note response times. If it takes days to geta return call, this could spell trouble if you start a job with this type of person.

3. The cost breakdown is so important. It allows you to compare quotations quite easily. You cansee why one quote is low and another is high. On larger projects, a blank space in thebreakdown tells you an item has been forgotten!

4. Insurance coverage is mandatory. You want real copies with current dates to show that youwill be covered if someone gets injured on your job. Remember that sub-contractors must havetheir own separate insurance coverage!

5. Start - Stop Dates will help you determine if the contractor is serious about your job. Ask aboutwho will be working on your job and when they intend to show up. Ask about delays - whatcauses them and how long might they last.

6. References are critical. The key is to find ones from the different time periods. Ask the peopledifferent questions. The most recent reference can provide you with interesting data. Forexample, did the workers arrive when promised? If there was a delay, what was the problem?How long was the delay? Was the jobsite kept clean? Did anybody play loud music? Whatwould the referral do differently if allowed to start the job over from the beginning?

7. Ask the referral from two years ago about warranty claims. Was repair work necessary? Weretheir severe problems? Was the contractor responsive? Were the defects fixed correctly thefirst time or were repeated attempts necessary?

8. The oldest referral has good information too. Ask how well the work has held up. Ask whatthey would do differently? Would they hire the contractor again, OR have they since found adifferent contractor who does better work? You might be surprised by their answers!



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9. Contract Documents - Give serious consideration to attaching/referencing the Checklist as apart - or addendum - to your contract that you and the contractor sign. It can be used as a factsheet/specifications describing what was promised by the contractor. Since I am not anattorney, I can’t give legal advice. You may wish to consult with an attorney to see if your statelaw permits these kinds of attachments or addendums. I believe that virtually every statepermits you to do this.

HOW TO REALLY FIND A PRO

Finding a reliable, competent and skilled builder or remodeling contractor that can do all of the workwill take some time but it is by no means impossible. If you understand some of the basic principlesby which these people work, the task is not as mystical as it may seem. Quality contractors are proudof their work. They want it to be perfect or nearly so and they do not want any call-back or warrantyproblems. To achieve trouble free results, they know that high quality materials are an integral part ofeach project. Real professionals know that problems are public relations nightmares and drain profits.

Knowing this, you start your search for contractors by visiting the businesses that supply qualitymaterials to these individuals. You might be surprised to find out that these businesses are oftenplaces that you have never heard of. In your instance, open the Yellow Pages and look under theheading Blacktop Supplies. Many of the listings under this heading will be businesses that caterprimarily to contractors and not consumers like you. Visit two or three of these places if possible. Tryto do this in the middle of the morning or the mid-afternoon. Never go early in the morning, at lunch orthe end of the business day. These are busy times when contractors are picking up supplies.

Once there, ask to speak with the manager or possibly the owner. Briefly describe your job to thisperson. Ask for a customer who has been buying for 15 or more years, one that routinely buys thehighest quality materials, and who pays his monthly bill on time. If the business manager obliges you,you will have a list of high quality candidates. The final question to ask, if possible, would be names ofcontractors that this person would use to work on his or her own home.

If the manager will not release names, then go to Plan B. Do a stakeout of the business in the earlymorning and get business cards from the contractors who are buying supplies. Look for ones who aredriving well kept vehicles that project a look of professionalism. You will still need to do moredetective work, but your chances of hiring a pro are quite good.

Thanks again for your purchase. Don’t hesitate to email me if I can help you in any way. Simply go tomy website - AsktheBuilder.com - and look for the Ask Tim icon on the home page.

Click here for other Contractor Hiring Guide & Checklists available from AsktheBuilder.com.

Best regards!

Tim Carter - AsktheBuilder.com



http://www.askthebuilder.com/Submit_Question.shtml

http://go.askthebuilder.com/ChecklistCatalog



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Blacktop and Tar & Chip Article Links

Asphalt Driveway - The battle continues - which is better an asphalt driveway or aconcrete driveway? There are advantages to both. Driveway maintenance isanother consideration. Are asphalt driveway sealers required and how often?Another choice is a tar and chip driveway.

Blacktop Crack - Blacktop crack repair can be a messy job. Newer crack sealersinclude one that is applied with a standard caulk gun. Use of foam backer rodscan assist with the appearance of your blacktop crack filler. Carefully read alldirections so an important step is not missed.

Build A Gravel Driveway - Need to build a gravel driveway? There some importanttips for a gravel driveway. You have to decide on types of gravel for driveway andthe slope of the driveway for a few. A build it yourself gravel driveway is possiblewith proper planning and some rental equipment.

Blacktop Driveways Over Concrete - Blacktop or asphalt installation over concretecan be very successful. But, consider an alternative - concrete overlays. You cando this yourself or have a contractor make your driveway truly unique withstamped and colored concrete.

A Strong Asphalt Driveway - Asphalt driveways can remain in great shape fordecades. The right base and proper asphalt sealers are the keys.

Wide Variety of Blacktop Sealers - Asphalt sealing will be successful only if youprepare the driveway first. Cleaning and patching asphalt cracks are the firststeps. High quality asphalt sealers are the finishing touch.

Tar and Chip Driveway Update - Gravel driveways have a new update. Tar andchip driveways give the look of a beautiful gravel driveway with the strength of ablacktop base to hold the colorful stones.

Blacktop and Asphalt Facts - Blacktop is a great material to use if you want ablacktop driveway. But not all contractors are equal. Some do great work atinstalling blacktop, while others do a poor job. To get a great job done on yourblacktop driveway, you better know the right questions to ask.

Asphalt Patching - Pothole repair of your asphalt driveway is easily accomplishedwith preparation and the right materials. Cold mix patching compound is thematerial your need. Be sure that the pothole is prepped correctly and know whenasphalt sealer should be applied.


http://www.askthebuilder.com/827_Asphalt_Driveway.shtml

http://www.askthebuilder.com/748_Blacktop_Crack.shtml

http://www.askthebuilder.com/698_Build_A_Gravel_Driveway.shtml

http://www.askthebuilder.com/508_Blacktop_Driveways_Over_Concrete.shtml

http://www.askthebuilder.com/NH025_-_A_Strong_Asphalt_Driveway.shtml

http://www.askthebuilder.com/471_Wide_Variety_of_Blacktop_Sealers.shtml

http://www.askthebuilder.com/457_Tar_and_Chip_Driveway_Update.shtml

http://www.askthebuilder.com/B415_Blacktop_and_Asphalt_Facts.shtml

http://www.askthebuilder.com/283_Asphalt_Patching.shtml


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Asphalt (Blacktop) Patching Material - Have you been bothered by your inability tosuccessfully patch your blacktop and asphalt cracks and holes? Quite possiblyyou have not been using the right materials. It has just been within the past fewyears that high performance asphalt repair materials have finally started to appearat the residential level.

Tips on Patching Blacktop and Asphalt - If you want to have long term successwith patching holes and cracks in your blacktop or asphalt surfaces, here aresome very important things that you must do.

Tar and Chip Driveway Installation and Upkeep - Tar and chip driveways areattractive, cost less and require little maintenance. Get a contractor to do theinstallation for you. Here are more do's and don'ts of installing and maintaining atar and chip driveway.

All About Tar and Chip Driveways - Concrete driveways tend to be very white.Blacktop or asphalt driveways tend to be very black. Is there an alternative? Youbet there is - it is called a tar and chip driveway. If you have access to coloredrough gravel in your area, you can have a low cost colorful driveway that looks likea country road. Browns, grays, pale greens are all possible. In fact, if you arefortunate to have a resourceful gravel supply company you can even blend colors.My own tar and chip driveway is a mixture of light and dark brown stone chips.

Tar and Chip Driveways - Tar and chip driveways are similar to blacktop but havesome different features. The blacktop can repair its own small cracks and thegravel provides great traction. The look can be unique with the color of gravel youpick.

Asphalt Sealers - Asphalt driveways will lose their flexibility if not properly sealed.Flexibility helps asphalt driveways to resist cracking. Asphalt sealers need to beapplied within the first year and then whenever the blacktop begins to wear.

Tips on Residential Blacktop & Asphalt Paving - A top-notch asphalt paving jobrequires attention to certain conditions like drainage, sub-grade and base. Yourblacktop driveway should have positive drainage, a strong sub-grade soil and agravel base ranging from 6-10 inches thick. These tips increase the quality of ablacktop and asphalt paving job and its maintenance over time.

Asphalt - Blacktop Videos


http://www.askthebuilder.com/B283_Asphalt_Blacktop_Patching_Material.shtml

http://www.askthebuilder.com/B283_Tips_on_Patching_Blacktop_and_Asphalt_.shtml

http://www.askthebuilder.com/B127_Tar_and_Chip_Driveway_Installation_and_Upkeep.shtml

http://www.askthebuilder.com/B127_All_About_Tar_and_Chip_Driveways.shtml

http://www.askthebuilder.com/127_Tar_and_Chip_Driveways.shtml

http://www.askthebuilder.com/074_Asphalt_Sealers.shtml

http://www.askthebuilder.com/B29_Tips_on_Residential_Blacktop_and_Asphalt_Paving.shtml


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Blacktop Driveway Crack Repair Video - Tim Carter demonstrates one way torepair blacktop driveway cracks and shares a tip for concealing the repaireddriveway cracks.

Tar And Chip Driveway Video - Tim Carter shows a different kind of driveway - tarand chip driveway. Looks better than a standard blacktop driveway and it can becustomized!

Cleaning Up Oil Spills Video - Tim Carter demonstrates how to get an oil stain offa concrete or blacktop driveway. Stain removal is possible, but the oil stainremoval should be done as soon as possible.

Driveway Repair Video - Tim Carter demonstrates really simple ways to repaireither blacktop or concrete driveways. Repair blacktop driveways before you applythe driveway sealer.


http://www.askthebuilder.com/Blacktop_Driveway_Crack_Repair_Video.shtml

http://www.askthebuilder.com/Tar_And_Chip_Driveway_Video.shtml

http://www.askthebuilder.com/Cleaning_Up_Oil_Spills_Video.shtml

http://www.askthebuilder.com/Driveway_Repair_Video.shtml


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General Planning Articles

Home Plans - Home plans with detailed interior and exterior elevations and exact specifications willhelp make your dream home become reality. Be specific with house floor plans, and make yourplans reflect exactly what you want down to the smallest detail. Avoid problems by drawing upprecise home plans before your new home construction begins.

Building a New Home - Get Organized - Building a new home requires hundreds of choices. Getorganized by keeping all of your choices and plans for your new home building project in a binderso no decisions fall through the cracks. Blueprints and specifications along with this binder will keeptrack of the entire project. Select amenities for your new home at the start so that workmen canplan openings and utility adaptations to stay on schedule.

Detailed Plans and Specifications Minimize Mistakes - Detailed blueprints, plans and specificationswill help you avoid being sued by a contractor. Keeping a detailed account of work each day, alongwith photos, will arm you with data should a problem with your contractor arise.

Home Remodeling - Remodeling and new home construction share a lot of common items. Butthey differ in one major area - remodeling is done in the house where you are living. Daily routinesare altered. Certain areas of your house may be unavailable during remodeling. No kitchen orbathroom will be a real problem. Read these tips to help minimize your interruptions.

Payments

The following three articles are contained right in this Contractor Hiring Guide & Checklist.

Contract Payments - Detailed contracts noting exact contractor and homeowner specifications andlisting payment schedules help avoid payment disputes.

Payment Suggestions - Before payment or work begins, establish detailed contracts, buildingplans, payment dates, affidavits and helpful construction reports.

When to Pay for Remodeling Plans - Never pay all of the money due for remodeling plans beforethe plans are complete. Once you give cash in advance for incomplete work, you lose all of yourleverage. Up-front payment has left tens of thousands of people disappointed when the personnever finished the job after being paid.

Payments - Read more online columns regarding making payments during construction at theAsktheBuilder.com website.

The columns shown above are only a sampling of the columns available to help you. Check theAsktheBuilder website for more information on this and all aspects of Home Improvement.


http://www.askthebuilder.com/NH028_Home_Plans.shtml

http://www.askthebuilder.com/376_Building_a_New_Home_-_Staying_Organized.shtml

http://www.askthebuilder.com/340_Detailed_Plans_and_Specifications_Minimize_Mistakes.shtml

http://www.askthebuilder.com/Home_Remodeling.shtml

http://www.askthebuilder.com/Payments.shtml



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CONTRACT PAYMENTS

DEAR TIM: You and other people constantly write about how homeowners need to protectthemselves from contractors who take their money and perform shoddy work or no work anddisappear. What about homeowners who don't pay for work? I have had several customers who nitpick a job to death and withhold tens of thousands of dollars until several small items are completed. Ihave bills to pay just like everyone else. What is a fair way to solve money problems betweenhomeowners and contractors? Robin S., Kansas City, MO

DEAR ROBIN: Touche! Years ago, I was in a similar situation. I am convinced that hundreds andthousands of homeowners torment contractors for all sorts of reasons. Some of them are legitimatewhile others are based on past bitter experiences, lack of goodwill, and distrust of contractors as awhole. Unfortunately, there is a small group of very bad homeowners who simply wish to cheatcontractors out of money just as there are deceitful contractors who abscond with hard earnedhomeowner dollars.

When I perform autopsies on these problems, I typically discover a common flaw. The contractbetween the parties is very vague about the payment terms and conditions. In some instances,wording allows contractors to get too much money in advance. In other instances, homeownersadvance money to contractors in a spirit of good faith. Unless these homeowners are working with acontractor who has the highest level of professionalism and honor, the advancement of money beforecertain things are complete can be a recipe for disaster. The incentive to continue to work at thehighest level of efficiency and quality has been removed once the money has been paid.

Contractors routinely present contracts to homeowners that contain loopholes. Imagine language thatstates, "Payment is due upon completion of work." Well, if I were a homeowner, I could feel justified inholding back the monies if the job were not completely finished. Imagine the nightmare of a job where$100.00 worth of exterior work can't be completed until the spring thaw yet $80,000.00 or more is dueupon the total completion of the job. If both parties agree to the terms of a contract, then I maintainthat they should abide by what the contract states.

There are countless ways to solve payment problems. Several have worked well for me no matterhow large or how small a job might be. One element missing in almost every contract I have seen is atiebreaker clause. It is wise for the parties to agree up front on an independent inspector who iswilling to give a ruling as to the quality and completeness of work. In the event of a dispute betweenthe parties, the inspector issues a written ruling that goes one way or the other.

I have found that it is very effective to state that progress payments are made on given dates for thework that is in place and completed to the satisfaction of the homeowner and/or independentinspector. A job cost breakdown that assigns a fair and real number to each aspect of a job isinvaluable for this to happen in a fair way for both parties.

The homeowner has a given amount of time to make the payment after the bill is produced. Since thehomeowner knows when monies are due, all inspections would have to be scheduled in advance.This allows the homeowner to feel confident the work is satisfactory as he writes the check to meetthe deadline. The contract could contain language allowing the contractor to pull off the job if themoney is not paid on time. No contractor really wants to do this for any number of reasons, but it



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limits the amount of financial exposure to a fixed sum of money. It also gives the contractor someleverage as very few homeowners want their job to be at a standstill.

Set standards in the contract, if possible and reasonable, with respect to work meeting the buildingcode or more importantly set forth manufacturers' specifications. A benchmark of quality must also beestablished or you may never meet certain homeowner's expectations. The independent inspectormay come into play in this event as well.

Return to Index page.



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PAYMENT SUGGESTIONS

DEAR TIM: My house was severely damaged by a natural disaster. My husband and I hired acontractor who was referred by a friend and whose state license is in good standing. We visited othersmaller jobs to review his work. We signed a contract with him to perform $250,000 in repairs. He hastaken all of our money and only 1/3 of the work is complete, much of it against code. What should wehave done to avoid this nightmare? J.C.

DEAR J. C.: After reviewing all of the details of your story, I can see that this person was a con artistfrom the start. All of the facts that you have presented indicate that this individual was not capable ofperforming a job of your scope. Furthermore, it appears that he had every intention of stealing yourmoney. He has no honor and makes life miserable for all honest, stable, and trustworthy contractors.

Some state laws permit contractors to ask for and accept deposit money the day the contract issigned. In many cases, deposit money forwarded by a homeowner to a contractor is nothing morethan a loan. You put yourself and your money at great risk if you advance money to a contractor forno good reason. Some contractors use deposit money to pay the bills of other jobs currently inprogress. This business practice is often referred to as under-capitalization. In other words, theirfinancial gas tank is running near empty.

Contractors deserve advance money in certain instances. For example, they may have to ordercustom non-returnable objects such as kitchen cabinets or custom windows or doors. A build/designfirm may want the cost of the design work and the building permit covered as these items can only beused on your job. Design and planning costs can be negotiated during the bidding process. Costs forcustom materials can be verified by asking for copies of the quotes from suppliers. Honestcontractors generally will not hesitate to provide you with these numbers.

I also noticed that you allowed the contractor to begin work without finished, detailed plans that wereapproved by your local building department. This was a critical error on your part. It is vitally importantto have finished plans and specifications BEFORE the contract is signed. The plans should be anintegral part of the contract documents. An investment of $250 or so with a attorney to review yourcontract would have been very prudent. The contract could have contained language telling thecontractor that all work must be performed in accordance to the plans and specifications.

Payments of additional monies as the work progresses must be tied to specific progress points. Youcan agree to pay weekly or monthly for work that is complete and satisfactory. To aid you indetermining what is a fair price to pay at each of these times, a detailed cost breakdown of the jobcosts is required. Had you obtained this breakdown of costs on your job, the money to pay for the yetunfinished work would still be in your possession.

I suggest that you contact your local building department as well. Often these agencies providewritten progress reports during construction. These reports tell you whether or not the work is beingcompleted in accordance with the building code laws. Make the contractor submit these reports, ifthey are available, at each request for payment.



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In addition, be sure you receive notarized affidavits from each person who has worked on yourproperty or material supplier who has delivered materials. If your contractor has not yet paid thesepeople, your nightmare is just beginning.




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WHEN TO PAY FOR REMODELING PLANS

DEAR TIM: My husband and I are remodeling our home to accommodate for our new arrival. We'vebeen working with an architect who is not fully licensed at this time. This individual has been drawingup plans for our new project. The plans are not yet signed and sealed as he wants to send them to alicensed architect to have this done. But he wants us to pay the full amount of the plans prior togetting them signed and sealed. We're not sure if we should pay for the plans until everything isfinalized. Please let me know if we should pay for them up-front or if we should wait until the plans arecompletely done. Julie S., Orlando, FL

DEAR JULIE: Congratulations on the expanding family! The answer is very simple if you ask me. Ifeel you should never pay in full for something until such time as you are completely satisfied. Thefact that the unlicensed architect-to-be asked for the money before the job is complete is verytroubling to me.

There are all sorts of reasons you should not pay in full until the job is complete. The money in youraccount is the only leverage you possess. The instant you hand over all of the money for the plans,you then rely on integrity, hope and good will to get what you want. This individual may have all ofthese qualities and more, but I do know he does not yet possess good business sense.

I can produce countless examples in the real world where you do not pay for things in advance in-fullbefore you get them. There are many things where you do put down a deposit and possibly maketimed payments as the work progresses, but to pay in full before delivery is a recipe for disaster.

Here is a true story that just happened to the son of a close friend. This young man wants to becomea commercial pilot. He signed up for flying lessons and all the necessary ground school training to getthe commercial license. The cost was staggering - somewhere above $15,000. My friend co-signed aloan for his son with a bank, took the funds and paid the flight school for the flying lessons andschooling. They did this in advance to get a slightly reduced price. A month ago the flight school wentbankrupt and the son only had 10 percent of his training complete.

The son and father still owe the money to the bank and they have virtually nothing to show for it. Asimilar thing could happen to you. This unlicensed architect may have made an enormous amount ofmistakes in your plans. It could take many hours of redrawing to correct them. Once he has themoney, he may be reluctant to make the changes in a timely manner. One thing we know for sure isthat his incentive to do so will be greatly reduced. In fact, he will find that the additional work willcreate a large mental obstacle as he feels he is not getting any money to correct his mistakes shouldthey exist.

At this point in time, you have enormous leverage. The plans he has been working on are of no valueto anyone but you and your husband. No other homeowner would have interest in them as they arehouse-specific remodeling plans.

You simply tell this person that you are more than willing to write a check for 90 percent of the totaldue once the plans are signed and sealed by a real licensed architect. You then tell thearchitect-to-be that the remaining 10 percent of the money will be paid as soon as the building permit



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is issued. Keep in mind that the building department may request minor changes in the plans before apermit is issued. You still want to have some financial leverage in the event this happens.

