Avoiding the CON in Construction
TABLE OF CONTENTS
Preface
1. COVER YOUR ASSETS
CON 101: Introduction to CONtracting
CON 102: Here today, con tomorrow
CON 103: The story of Jack (of all trades)
CON 104: For a low, low price of "¦
CON 105: It"™s now or never
CON 106: You need more, more, more
CON 107: Free money?
CON 108: The CONtractor shuffle
CON 109: Permit passover
And the CON goes on
Knowledge is power
It's all about teamwork
It's in your hands
2. THE WHO, WHAT AND WHY OF CONTRACTING
The who's who of contracting
What exactly is construction contracting?
The why of construction contracting
3. PLAN THE WORK AND WORK THE PLAN
The scoop on the scope
A sample scope - the Harris kitchen remodel
The activities described
The cost of a flawed scope of work
4. FINDING THE RIGHT PERSON FOR THE JOB
Referrals: It takes one to know one
Contractors' work is a testament to their worth
Advertisements: Hear ye, hear ye
Content: Is it an editorial or an advertorial?
Internet advertising
Where not to look for contractors
Before you proceed
I spy, then verify
5. CONTRACTOR QUALIFICATIONS
Professional licensing
Occupational licenses versus professional licenses
Occupational license: It's all business
Professional licensing: It's personal
Requirements for construction professional licensing
Knowledge
Experience
Financial and personal integrity
Continuing education
Verifying a contractor"™s professional licensing
Building Department
Professional Licensing Division
Inside the state website
Contractor licensing is for your protection
6. INSURED AGAINST LOSS
Protection against loss
Workers' compensation insurance
Why you should care
Building Department
Workers Compensation Division
Authorized exemptions
Once again
General liability insurance
General liability insurance and property damage
General liability insurance and personal injury
Verifying general liability policies
Document consistency
Additional protection
Policy limits
Builders' risk insurance
Other preventative measures
7. BONDS: THE THIRD-PARTY GUARANTEE
Assured by the surety
Non-contract bonds: Contractor licensing bond
Contract bonds: Bid, performance, and payment bonds
Prequalification protects you
Contractor failure
Licensed, bonded, and insured
Recovery fund - another resource
Time is of the essence
8. I SPY, OH MY!
A record of the past
Records are everywhere
Official records and public records
State licensing websites
Secretary of State and the Division of Corporations
Searching the Division of Corporations 'database
Corporate filings
Online building permitting databases
Legal research on individuals and their companies
Ethics and accuracy
Court docket entries versus court records
Online court docket entries
Search tips: Reaching the correct Clerk of Court Office
Inside the clerk'swebsite
Broad search versus narrow search
The search returns
From government to private industry records
User review websites
Better Business Bureau
Angie's List and RipOff Report
Other online information sources
How deep to dig
Additional considerations
References
Professional associations
Conclusion
Contractor Candidate Checklist
9. MAY I PROPOSE?
Jobsite meeting
Fixed-price versus time and materials/cost plus proposals
The risk of overpaying
One step at a time
Low bid: Is it a bad deal?
Payment schedule: Deposits and progress payments
Lenders know construction costs
Contractor-drafted draw schedules
Front-loading
Other considerations
Warranty
Permitting
Schedule
Entering into contract
10. CONTRACTS
Contracts in general
I read you loud and clear
Contract provisions
Possible work provisions
Possible payment provisions
Changes in contract price
Possible schedule provisions
Possible insurance provisions
Possible warranty provisions
Possible indemnity provisions
Default, termination, and damages
Dispute resolution
The contracting parties
The all-important contract
11. PERMIT ME TO EXPLAIN
Permitting documents and their objective
The building permit application
Notice of Commencement: A notice before you begin
Building plans: Your dreams defined
The site plan
The comprehensive plan: It's the broad vision
Land use
Zoning code
Flood zones
Variances
Special-use (or conditional-use) permits
One more thing about property use
Additional documents for permitting
Owner/builder permits
Benefits versus risk
What it takes
Owner/builder failure
Underestimating estimating
Time is not on your side
A look at liability
Look before you leap
Permitting questions and process
12. INSPECTIONS: Get them done right
Building codes
The history of building codes
Building codes today
Before you schedule
Meet the inspector
R-E-S-P-E-C-T
A quick look at inspections
From the bottom up
If the walls could talk
The home stretch
Summary
13. A LOOK AT LIENS
Construction liens
Promises, promises
Liens and lienors
Foreclosure sales
Unfair?
Know thy lienors
Lienor's duties under lien law
Why weren't we introduced?
Owner's duties under lien law
Types of lien releases
Your safety net
(General) contractor's final payment affidavit
Unpaid lienors
Know thy lien laws
Lien Prevention Checklist
The Lieniator says "¦
14. OTHER PROJECT CONSIDERATIONS
Avoiding the calm in complacency
Safety sleuths
Fall injuries
Excavation
Cranes and other hoisting equipment
Electrical hazards
Vehicle safety
Fatal Facts
Other matters that matter
Agree to disagree
Daily log and photo documentation
Work
Communications
Significant events
Jobsite injuries
Materials
Weather
Photographic documentation
The cost of complacency
15. IN A NUTSHELL
Like it or not
Start off on the right foot
Integrity starts with an I
Risk versus benefits
To be or not to be
Appendix A-E
Noteworthy Organizations
Contact Information: U.S. State Governments
Contact Information: State Professional Licensing Divisions
Contact Information: State Workers' Compensation Divisions
Contact Information: State Divisions of Corporations
Index