Tips
& Home and Garden Links
*More
Renovation Links* Access our links to more informative
renovation and construction, and home & garden sites! Great
links
Before
you start your project
Beware! There are people out there,
(not members of Home-Work) who are simply trying to rip you off.
They may arrive at your doorstep offering you a "special deal"
if you pay them cash and don't sign a contract. There are numerous
scams going on out there. Protect yourself by not dealing with
these people.
Before booking an appointment with
a contractor, or setting up a time for him/her to do an estimate,
make sure that the contractor is able to do the job you need to
have done. It will save everyone time.
Before hiring a contractor, know
what you want in terms of change, quality, price and approximate
design. Try to learn a bit about the work being done. Being educated
on the subject gives you an advantage. Know-how leads to knowing
what you want in the job rather than something you don’t need
or cannot afford.
Be sure to obtain 2 or 3 estimates
for the project. Ask a lot of questions and write down the answers.
You'll never be able to remember them all! Don't consider only
price. Check carefully to see what you are getting for your money.
Sometimes paying a bit more now saves money in the long run.
It is a good idea to contact your
insurance company to inform them of your renovation project and
make arrangements for any additional coverage needed.
If a contractor accepts money before
work is complete, and looks for work and discusses a contract
away from his/her normal place of business, (for example- in your
home), he/she must be licensed by Alberta Municipal Affairs, Housing
and Consumer Affairs. He/she must also be bonded.
Ask a lot of questions and clarify
all information before signing the contract. Once signed by both
parties, the contract is legally binding.
Include provisions to ensure that
the contractor provides you with lien releases and proof of payment
to subcontractors and suppliers, to protect you from liens on
your property. (To learn more about liens and other renovation
terms, please go to our glossary.)
The
Contract
A contract is a written document
that becomes legally binding once signed by the contractor and
the homeowner. Two original copies should be signed, one for each
party. It should contain the following:
- the place and date of the contract
- the complete address of the property
where work will be done and the name and address of the buyer
- the contractor's name address
and telephone number, and professional license number
- a detailed description of the
project, a list of materials to be used, and sketches (if applicable)
- the agreed upon starting and completion
dates
- total amount payable by the buyer
with a breakdown of labor and material charges
- a payment schedule
- any warranties and guarantees
of workmanship
- the method for debris and material
removal once job is completed
- agreement of who is responsible
for obtaining all needed licenses, permits and certificates
- the contractor's and the buyer's
signature
Note: If a contract is worth $200
or more, and if a contractor accepts $ before the job is completed,
he is required by Alberta law to give you a written contract.
If a job is small, you won't need as detailed a contract.
Don't:
- sign anything until you are ready
- sign a blank contract, or one
with blank spaces of an kind (any blank spaces should be filled
in with NA (Not Applicable) or NIL (nothing)
- sign anything that you don't understand
- submit to high pressure sales
tactics
- pay for the entire job in advance
or pay cash without getting a signed receipt
During
the renovations
Under certain conditions, the Direct
Sales Cancellations Act allows you to cancel the contract. You
must do so no later than 10 days after receiving your copy of
the contract. Certain conditions apply. For more info, visit our
link to government of Alberta Home Renovations and Repairs.
Changes to the contract will often
be necessary. Changes should be made with the written approval
of the homeowner and a signed statement from the contractor stipulating
the extra cost or reduction in cost. If your project is being
financed, find out if the changes need to be approved by the financial
institution.
A down payment is seldom needed for
renovation jobs. If the job is a large one, interim payments may
be requested. Only make payments for work that has been completed.
Pay by check or credit card in order to have a record of payment.
Paying by cash is fine, just make sure to get a signed receipt.
When you have workers in your home,
be friendly and welcoming. This predisposes them to do a good
job for you. Give them a "pat on the back" for a job well done.
It is a good idea for you to be at
the work site as often as you can. That way, you will be available
should questions or problems arise, and you will be able to see
for yourself just how the job was done.
Terms
you should know
Contractor: A contractor is
a person who contracts to make repairs upon, or improvements to,
your home or property.
General Contractor: A general contractor is a professional
builder or remodeler who takes charge of a construction job and
coordinates the work of the subcontractors, suppliers, the designer
or architect (if one is involved), local building inspectors and
related government agencies.
Subcontracor: A subcontractor is a tradesperson hired by
the general contractor to do one or more of the jobs needed. They
are skilled in one or more areas and bring with them specific
knowledge and expertise.
Licenses: Anyone who advertises for services done around
the home must hold a valid city license. A police review is conducted
before a license is issued. If a contractor takes deposits on
work to be completed, and looks for work and discusses a contract
away from his place of business, he must be bonded and he must
hold a provincial license as well as a city license. Good contractors
should be proud to show their licenses.
Building Permits: A permit must be obtained from the city
before commencing certain work being done on your property. If
the structure of your home, or any of its components, (wiring,
plumbing,etc.) will be altered, you will be required to obtain
a building permit. It is best to have your contractor obtain these
permits. This should be clearly set out in your contract.
Worker's Compensation: Contractors may pay into this insurance
to cover themselves should they become injured on the job. It
is not compulsory, so not all contractors will have it. If a contractor
is injured on your property, the only way you could be sued, is
if you are negligent. For example, a painter sets up his ladder
on your freshly washed, wet floor, slips and falls and breaks
his leg. If he does not have worker's compensation, he could sue
you. Most people are covered for liability under their home insurance
policy. It is, however, a good idea to call your insurance agent
to make sure you have the proper coverage before starting your
renovation project!
Lien: A lien is a notice that someone is claiming a right
to be paid out of the value of a particular piece of property.
A lien can be placed on your property by suppliers or workers
who are unpaid by the contractor. Liens hold your property as
security for the contractor's debts- even if you have paid the
contractor in full! In other words, you could owe a supplier or
subcontractor for payments or wages the contractor neglected to
pay. You have final responsibility for seeing that all bills are
paid to the proper people. For a large home improvement job that
involves several subcontractors and a large financial commitment,
you should protect yourself from liens against your home in the
event that the contractor does not pay his suppliers or subcontractors.
You can do this by adding a release-of-lien clause to the contract,
or by placing your payments in an escrow account until the work
is completed. You can check your title record at a registry office.
(Call (403)297-8980 for the Calgary office nearest you).
Bond: A bond is an insurance policy for which the contractor
pays a premium. It guarantees that the contractor will meet his
obligations in a satisfactory manner. Failure to do so should
result in the payment of compensation by the bonding company.
In Alberta, if a contractor accepts money before work is complete,
and he/she looks for work and discusses a contract away from their
normal place of business (for example, in your home), he/she must
be licensed by Alberta Municipal Affairs, Housing and Consumer
Affairs. He/she must also be bonded by a bonding company. Choosing
a bonded contractor is more important when substantial, expensive
jobs are to be done.
Where to get more information:
Municipal Affairs
Housing and Consumer Affairs
301, 7015 Macleod Trail South
Calgary, Alberta T2H 2K6
(403) 297-5700
Business Development Bank Of
Canada
Bow Valley Square One 5th Floor
202-6th Avenue SW
Calgary AB T2P 2R9
(403) 292-5000
Calgary Business Information
Center
250 639-5th Avenue SW
Calgary AB T2P 0M9
(403) 297-6284
