Choosing a Builder or Remodeler

Taking the right steps

• If you are in the market for a new home or thinking of remodeling, there are some important points to consider to assure the best results.

Planning your project

• Before selecting a contractor, you should decide what you want and can afford. For example, if your remodeling project involves a room addition, determine a list of wants and needs. If you will be taking out a loan, visit your lender and find out what is in your price range. Once you know what you want and can afford, your search for a contractor begins.

Finding a contractor

• Your home is too important to entrust to anyone but a professional. Seek referrals from friends, family, neighbors, coworkers, and others. Visit with your lender and local trade association. Check with the Better Business Bureau. Make sure the contractor has Workers Comp. and liability insurance.
• If you are remodeling, does the remodeler have a track record of successful projects such as yours?
• If you are building a new house, ask for a list of their recently built homes. The builder may even be able to provide names of some homeowners who would be willing to talk with you. Questions you should ask are...
• Are you happy with your home?
• Did the builder do what was promised in a timely manner?
• Would you buy another house from this builder?
• If the builder has an open house, visit the home and spend time looking at the workmanship. Inspect the cabinetry, trimwork, paint and carpeting. Ask questions!

Comparing Cost

• You should get at least two or three bids from prospective contractors, based on the same building specifications, materials, labor, and time needed to complete the project.
• Always keep value in mind when shopping. Just because a project is less expensive does not mean it is a better value.
• Likewise,a more expensive home does not automatically assure higher quality. Remember, low price alone does not ensure a successful experience.

Signing the contract

• Find out whether the contractor uses a detailed, written contract that protects both of you. The contract must spell out the work that will be performed. It should specify all materials to be used in terms of quality, quantity, color, size, or brand name. A payment schedule
• On a home improvement job, you should not make payments for any incomplete work. All these terms should be spelled out in the contract as soon as you sign and file your records. Any warranty offered by the contractor should be in writing and you should read it very carefully and ask questions you may have before signing. Then, retain a copy of the contract as soon as you sign and file in your records.It should spell out all terms and conditions in a language that you can clearly understand, make sure the written contract includes:
  • The contractor's full name
  • Address
  • Telephone number
  • Proof of Workers Comp and Liability Insurance

Cancellation Rights

• When signing a home improvement contract in your home and in the presence of a contractor, or contractor's representative, you have three business days in which to change your mind and cancel the contract. If you cancel, it is recommended that a notice of cancellation be sent to the contractor by certified mail, return receipt requested.

Why are permits required

• Safety is the primary reason for requiring permits. City inspectors check to make sure construction and installations are proper for the protection of your family and property. (For example, did you know that a building permit is required for all decks constructed in Lincoln and Lancaster County.)
• Permit applications must be submitted to the Building & Safety Department along with three plot plans and three sets of building plans. Office hours to submit building permits are 8 a.m. to 4 p.m. Monday - Friday
• The contract with your builder or remodeler should state that the work is to be performed in accordance with all applicable codes and zoning regulations. Contractors performing electrical, heating or plumbing work must be licensed by the City of Lincoln.
• A building permit is required whenever structural work is involved or when the basic living area of a home is changed. Separate permits for electrical, heating or plumbing work will be required. You may check with the Building & Safety Department before the job is started, to find out if a building permit is required.
• If the project does require a building permit, the contractor should apply for it in his/her name. Thus, if the contractor's work does not pass inspection, you should not be held financially responsible for any correction that must be made. Terms regarding the application of any permits should be outlined in the written contract. You should also remember that you, as homeowner, will be held legally responsible if permits are not taken on any work which requires one.

Repairs to property covered by insurance

• If your home improvement project is the result of damages and is covered by an insurance policy, check with your insurance company or agent to determine the extent of your coverage before signing a contract to have the damages repaired.
• Your home is one of the biggest and most important purchases you will make in your lifetime. By doing your homework you can have confidence that are you are making the right decisions.

Tips to remember

• Verify the name, address, telephone number, credentials and references of the contractor.
• Make sure the contractor has insurance.
• Obtain more than one bid for the project. Do some comparison shopping in choosing the contractor.
• Remember the lowest bid does not assure quality.
• If you are remodeling, check with the Building & Safety Department to determine what permits you need to proceed with your project.
• Include all terms, conditions, warranties and oral promises concerning the project in a written contract.
• Don't sign the agreement until you have completely read and understood all the provisions.
• Don't submit to high pressure sales tactics by a contractor or sales representative.
• Don't pay for the entire job in advance or pay cash to a salesperson or contractor.

For more information, contact

Cornhusker Better Business Bureau 3633 0 Street, Suite 1 Lincoln, Ne 68510	HomeBuilders Association of Lincoln 6100 S 58th Street, Suite C Lincoln, NE 68516 Phone: 402.423.4225
Building & Safety Rm. 203 555 S 10th Street Lincoln, NE 68508 Phone: 402.441.7521