Honest and fair practices: 5 ways to protect your project

Along with providing quality work, MGB Construction feels a duty to inform you. Here are five key pointers for keeping your contractor honest and fair.

1. Three is key

Getting three quotes is always a good idea. It helps you compare prices, and it gets you a few different options. If you have a restrictive budget, especially when there's more work to be done than the budget allows, three contractors looking at your property will give you three opinions on how to spend it. Having choices lets you pick the option that gives you the best value.

Once you decide on a specific scope of work, re-bid it so each contractor can give you a competitive price for that same scope.

2. Apples to apples

Don't just compare the bottom line. Make sure the estimates price the same scope of work and the same quality of materials. A common mistake is assuming the low bidder is quoting the same quantity and quality as the high bidder. Ask yourself:

• Is it the same scope of repairs?
• Is it the same square footage?
• Is it the same thickness and quality of material?

3. “Insure” your project is done right

There are two types of contractors: the legal ones and the illegal ones. Check your contractor's three major credentials:

1. License. Look up your contractor on the Contractors State License Board site, cslb.ca.gov.
2. Insurance. Ask for proof of insurance, including general liability, workers' comp and auto.
3. Bond and W-9. Ask for a W-9 and proof of a contractor's bond.

Making sure your contractor is legal protects your right to a quality job. If one quote is well below the other two, there's a good chance that contractor doesn't meet all of these criteria.

4. Get what you pay for

A dishonest contractor doesn't send a “dishonesty disclaimer” with the contract, which makes them hard to identify. But there are a couple of things you can do:

• Request weight tickets. If your contract is for 4 inches of asphalt, make sure that's what you get: calculate how much material should have been used and compare it to the weight tickets. A material calculator can convert square footage to tons.
• Verify specified materials. If your project calls for a specific material or brand, have your contractor show an invoice or weight ticket itemizing that product.

5. “Risky” business

Don't pay until the end of the job. There are few, if any, reasons for a contractor to demand full payment up front. Established contractors usually have the capital to carry a job's initial costs. If a project has multiple phases or runs over a long period, partial billing based on percentage of completion is common.

Giving a contractor money up front is risky business. If your contractor demands up-front payment, at the very least check their credentials using the tips in step 3.