Hiring a contractor can be a head spinning task. Selecting the wrong one could result in major problems down the line. We've seen remodels that had to be torn out due to improper construction and materials, water leaking through the ceiling where showers were just installed, and even renovations that weren't permitted and executed properly and couldn't be considered toward an increased sales price at the time the home was listed, resulting in a loss on their investment. If your project involves any tradespeople, structure, utilities, or an investment amount that would hurt to lose the value of- a LICENSED GC is your best bet. Here's why:
WHAT’S THE DIFFERENCE BETWEEN A LICENSED GENERAL CONTRACTOR AND A CONTRACTOR/HANDYMAN/HOME MAINTENANCE COMPANY?
Legally, there are many. North Carolina currently does NOT license or qualify Handymen or other Home Maintenance companies, only true General Contractors. It is ILLEGAL for any individual or company that is not also a Licensed North Carolina General Contractor to complete work exceeding $40,000 (less in some cases) or act as a subcontractor in any project. North Carolina licensed General Contractors must also:
• Demonstrate their knowledge in a wide range of construction and demolition activities and Building Code by taking a test administered by the State of North Carolina or recognized agency (NASCLA).
• Attend yearly Continuing Education and test their knowledge.
• Meet certain financial criteria (working capital) based on the classification of licensure.
All these factors are extremely important to consider when selecting your project team. We are staffed with a fully licensed General Contractor who is licensed for both residential and commercial projects.
WHY WOULD I HIRE A CONTRACTOR OVER A HANDYMAN OR HOME MAINTENANCE COMPANY?
The state of NC has enacted strict laws and guidelines on who is allowed to complete various tasks, including plumbing, electrical, and other trades. General contractors typically have a team of qualified individuals to complete the work under state guidelines. Handymen and Home Maintenance companies are not legally able to provide these services individually unless they hold a trades license in that specific field of work. This means your project must be completed with individual licensed trades- if someone is coming in and doing the whole project without licensed trades, that's a red flag. You should see a separate plumber, electrician, HVAC, etc as needed on site throughout the project. In addition, a General Contractor acts as the responsible party in the permitting process and therefore carries a license, bonding, and insurance. This is for YOUR protection and theirs. Most major projects need a permit within NC. Without all of these protections in place, you as the homeowner become responsible and could be held fully liable for anything that happens on the job-site and for the quality of services provided.
WHAT IS YOUR GENERAL CONTRACTOR LICENSE NUMBER?
Don’t be afraid to ask. The company you are considering should produce this immediately and without hesitation. The name the license number is attached to must be the person/company you are entering into a contract with and paying for the work. You may also check the NC Licensing Board to ensure the license is active, which classification of license they hold, and limitations.
https://nclbgc.org/license-search/
SPECIFIC QUESTIONS TO ASK YOUR CONTRACTOR
WHO WILL BE ONSITE TO VERIFY WORK IS BEING DONE PROPERLY AND PER THE RESIDENTIAL BUILDING CODE?
Your General Contractor should periodically be onsite to ensure work is being done in accordance to the schedule and cost agreed to for the project, since they are contractually obligated. Day to day operations are often monitored by a Team Lead or Superintendent.
WHAT IS YOUR EXPERIENCE WITH THE LOCAL PERMITTING PROCESS?
The individual or company bidding your project should take care of all the necessary permitting. They should NEVER ask you to submit the permit in your name. Your General Contractor should be permitting your projects for you. This makes him/her responsible for the permitted work.
CAN YOU PROVIDE A TIMELINE FOR THIS PROJECT?
Your GC should be able to give you a range of time your project is expected to take. This is not set in stone as material availability, permitting issues, etc can disrupt the schedule, but this will provide you a starting point to go off of.
HOW DO YOU COMMUNICATE WITH YOUR CLIENTS?
Is your general contractor available to call directly? Text? Do they have business hours? Is there an answering service instead? These are really important questions to know ahead of time. We give you direct phone access to your Superintendent and Designer so you always have access to someone if any questions or concerns arise.
IS YOUR WORK WARRANTIED AND FOR HOW LONG?
GC’s stand by their work. Everyone will have a different answer to this, but it’s good information to ask for.
IS YOUR BID AN ESTIMATE OR FINAL PRICE?
Every individual or company has a different approach. Typically, rough numbers are established prior to an itemized and detailed quote. Fluctuating material prices and unforeseen additions to the Scope of Work can create additional costs, even if you have a final estimate. Check the contract for these provisions to see how they will be handled.
WHO PAYS FOR OVERRUNS IN LABOR AND MATERIALS?
Ask your GC’s (and confirm in their contract) for details on who pays for what when costs exceed the estimate. These are commonly known as Material Escalation clauses.
ARE THERE ADDITIONAL FEES FOR DELAYS?
Things happen and timelines sometimes get messy. Who’s responsible for the costs associated with these delays is something worth knowing before the project begins. In a contract, this is commonly under a “Force Majeure” or Escalation section.
HOW MUCH DO YOU CHARGE FOR CHANGE ORDERS?
Whenever the Scope of Work is changed, an official change order should be written to protect both parties. GC’s often charge administrative costs to cover the behind the scenes of this process. The Change Order process should be laid out in the Contract documents.
HOW WILL THIS PROJECT DISRUPT OUR LIFE LIVING IN THE HOME?
Will your General Contractor need to turn off utilities? Do you need to move out? These are really important questions to plan for.
HOW MUCH WORKER'S COMP AND LIABILITY INSURANCE DO YOU CARRY? CAN WE HAVE A COPY?
This is really important. There will be many people on your property. Things happen. Make sure you’re protected. Many contractors and most unlicensed individuals do not carry Worker's Comp insurance for their team because, frankly, it's very expensive We require all licensed tradespeople to carry full insurance, including Worker's Comp, and we carry the same for all of our employees- even our design team!
HOW DOES PAYMENT WORK?
Again, you’ll get different answers from different companies, but generally a down payment, admin/permitting payment, a mid-project payment, and final bill are common practice. The payment terms and conditions should be readily available within the Contract documents.
***Remember, the payment goes to the individual/company who holds the license***
WHAT’S THE DIFFERENCE BETWEEN A LICENSED GENERAL CONTRACTOR AND A CONTRACTOR/HANDYMAN/HOME MAINTENANCE COMPANY?
Legally, there are many. North Carolina currently does NOT license or qualify Handymen or other Home Maintenance companies, only true General Contractors. It is ILLEGAL for any individual or company that is not also a Licensed North Carolina General Contractor to complete work exceeding $40,000 (less in some cases) or act as a subcontractor in any project. North Carolina licensed General Contractors must also:
• Demonstrate their knowledge in a wide range of construction and demolition activities and Building Code by taking a test administered by the State of North Carolina or recognized agency (NASCLA).
• Attend yearly Continuing Education and test their knowledge.
• Meet certain financial criteria (working capital) based on the classification of licensure.
All these factors are extremely important to consider when selecting your project team. We are staffed with a fully licensed General Contractor who is licensed for both residential and commercial projects.
WHY WOULD I HIRE A CONTRACTOR OVER A HANDYMAN OR HOME MAINTENANCE COMPANY?
The state of NC has enacted strict laws and guidelines on who is allowed to complete various tasks, including plumbing, electrical, and other trades. General contractors typically have a team of qualified individuals to complete the work under state guidelines. Handymen and Home Maintenance companies are not legally able to provide these services individually unless they hold a trades license in that specific field of work. This means your project must be completed with individual licensed trades- if someone is coming in and doing the whole project without licensed trades, that's a red flag. You should see a separate plumber, electrician, HVAC, etc as needed on site throughout the project. In addition, a General Contractor acts as the responsible party in the permitting process and therefore carries a license, bonding, and insurance. This is for YOUR protection and theirs. Most major projects need a permit within NC. Without all of these protections in place, you as the homeowner become responsible and could be held fully liable for anything that happens on the job-site and for the quality of services provided.
WHAT IS YOUR GENERAL CONTRACTOR LICENSE NUMBER?
Don’t be afraid to ask. The company you are considering should produce this immediately and without hesitation. The name the license number is attached to must be the person/company you are entering into a contract with and paying for the work. You may also check the NC Licensing Board to ensure the license is active, which classification of license they hold, and limitations.
https://nclbgc.org/license-search/
SPECIFIC QUESTIONS TO ASK YOUR CONTRACTOR
WHO WILL BE ONSITE TO VERIFY WORK IS BEING DONE PROPERLY AND PER THE RESIDENTIAL BUILDING CODE?
Your General Contractor should periodically be onsite to ensure work is being done in accordance to the schedule and cost agreed to for the project, since they are contractually obligated. Day to day operations are often monitored by a Team Lead or Superintendent.
WHAT IS YOUR EXPERIENCE WITH THE LOCAL PERMITTING PROCESS?
The individual or company bidding your project should take care of all the necessary permitting. They should NEVER ask you to submit the permit in your name. Your General Contractor should be permitting your projects for you. This makes him/her responsible for the permitted work.
CAN YOU PROVIDE A TIMELINE FOR THIS PROJECT?
Your GC should be able to give you a range of time your project is expected to take. This is not set in stone as material availability, permitting issues, etc can disrupt the schedule, but this will provide you a starting point to go off of.
HOW DO YOU COMMUNICATE WITH YOUR CLIENTS?
Is your general contractor available to call directly? Text? Do they have business hours? Is there an answering service instead? These are really important questions to know ahead of time. We give you direct phone access to your Superintendent and Designer so you always have access to someone if any questions or concerns arise.
IS YOUR WORK WARRANTIED AND FOR HOW LONG?
GC’s stand by their work. Everyone will have a different answer to this, but it’s good information to ask for.
IS YOUR BID AN ESTIMATE OR FINAL PRICE?
Every individual or company has a different approach. Typically, rough numbers are established prior to an itemized and detailed quote. Fluctuating material prices and unforeseen additions to the Scope of Work can create additional costs, even if you have a final estimate. Check the contract for these provisions to see how they will be handled.
WHO PAYS FOR OVERRUNS IN LABOR AND MATERIALS?
Ask your GC’s (and confirm in their contract) for details on who pays for what when costs exceed the estimate. These are commonly known as Material Escalation clauses.
ARE THERE ADDITIONAL FEES FOR DELAYS?
Things happen and timelines sometimes get messy. Who’s responsible for the costs associated with these delays is something worth knowing before the project begins. In a contract, this is commonly under a “Force Majeure” or Escalation section.
HOW MUCH DO YOU CHARGE FOR CHANGE ORDERS?
Whenever the Scope of Work is changed, an official change order should be written to protect both parties. GC’s often charge administrative costs to cover the behind the scenes of this process. The Change Order process should be laid out in the Contract documents.
HOW WILL THIS PROJECT DISRUPT OUR LIFE LIVING IN THE HOME?
Will your General Contractor need to turn off utilities? Do you need to move out? These are really important questions to plan for.
HOW MUCH WORKER'S COMP AND LIABILITY INSURANCE DO YOU CARRY? CAN WE HAVE A COPY?
This is really important. There will be many people on your property. Things happen. Make sure you’re protected. Many contractors and most unlicensed individuals do not carry Worker's Comp insurance for their team because, frankly, it's very expensive We require all licensed tradespeople to carry full insurance, including Worker's Comp, and we carry the same for all of our employees- even our design team!
HOW DOES PAYMENT WORK?
Again, you’ll get different answers from different companies, but generally a down payment, admin/permitting payment, a mid-project payment, and final bill are common practice. The payment terms and conditions should be readily available within the Contract documents.
***Remember, the payment goes to the individual/company who holds the license***