Ten Things to NEVER Let Your Contractor Do

Whether you are renovating an investment property or remodeling your own home, the Contractor relationship and performance are vitally important. Here is a Top Ten list of

Contractor Don’ts

1. Don't let the contractor write the Scope of Work. You can collaborate on it and their input is welcome, but ultimately it is YOUR list and the project is YOUR responsibility.

2. Don't let the contractor provide a price only after they have started the work. They will often say, "I won't know what it's going to cost until I get in there and start working." The correct answer is, "Bid on the work you can see. We will handle the rest with Change Orders."

3. Don't let the contractor do work that is not on the Scope of Work without prior approval. Things will always come up in property rehabs. You should have a solid Change Order Strategy in place and strictly enforce it.

4. Don't use the contractor's construction agreement. This document is 100% skewed to work in their favor. Use your document instead (hint: Get a sample here.)

5. Don't hire a broke general contractor. Broke handymen are the norm, and their work involves far less money so it's a different standard. The GC needs to be able to keep going occasionally while waiting to be paid. After the mobilization period you will only pay for completed work. The GC might need to make payroll without a payment from you occasionally.

6. Don't pay for half of the job or even one fourth of the job up front. Pay enough to mobilize for the first week or two and then only for completed work.

7. Don't let the contractor strike through provisions of your contract without your agreement. If they strike through and initial next to a section they don't like and you haven't initialed it and agreed to it, NONE of the contract is enforceable. It's as if you don't have one.

8. Don't let the contractor start your job and leave for days or weeks to start other projects. Put this expectation in writing.

9. Don't let the contractor or any subs you are paying directly begin work until they have completed a W-9 and submitted it. You could let them begin, but don't pay them until this is done.

10. Don't pay anything until the contractor has signed a lien waiver for the amount you are paying today. Use interim lien waivers and a final waiver of lien.

We would say, "Ask us how we learned these lessons," but you can probably guess - the HARD way. Here's hoping you will take them to heart, stick to your guns, and assert your power in this relationship.

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