Where Do I Begin?
Proper planning is important. Think your project through from start to finish. Careful planning of your home improvement projects will enable you to update your home, increase the value of your investment and customize your living space--all for a lot less than the cost of a new home.
Look over your property carefully. What repairs are needed? What improvements would you like to make? Think ahead and determine your future needs. Professional remodeling contractors can help you in your planning by outlining options and discussing the improvements you can make within your budget.
Be sure to review your homeowner's insurance policy and make adjustments for the added value of the work being done.
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What Are Some Finance Options For My Project?
There are various financing plans available to homeowners. Among the most popular is the equity line of credit, which bases the loan amount on the equity in your home. The Federal Housing Administration (FHA) has loans specifically for home improvements. They are available through many banks and lending institutions. The FHA, however, requires the contractor be approved by the lender. The FHA does not guarantee the contractor's work.
Some institutions will allow you to borrow against the anticipated equity in your home once your remodeling project is complete. A professional remodeling contractor is familiar with financing options available and can help. Research various sources of funding to compare individual qualification guidelines, interest rates, terms and tax considerations.
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Do I Need To Comply With Local Codes and Permits?
Building codes have been established by most cities, towns and countries. They vary considerably from one jurisdiction to another.
A building permit generally is required whenever structural work is involved or when the basic living area of the home is to be changed.
A professional who works in your city or town every day will know the local requirements.
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Will I Need a Contract?
Be sure the contract includes the contractor's name, address, phone and license number (if applicable).
Detail what the contractor will and will not do.
Your contractor should detail a list of materials for the project in your contract. This includes size, color, model, brand name and product.
Study all required plans carefully. Insist that you approve them and that they are identified in your written contract before any work begins.
Federal law requires a contractor to give you written notice of your right to, without penalty, cancel a contract within three business days of signing it, provided it was solicited at some place other than the contractor's place of business or appropriate trade premises (your home, for instance), or has financing provision.
Make sure financial terms are understood and spelled out in the contract. The total price, payment schedule, and any cancellation penalty should be clear. A warranty covering materials and workmanship for a minimum of one year should be written into the contract. The warranty must be identified as either "full" or "limited." The name and address of the party who will honor the warranty (contractor, distributor or manufacturer) must be identified. Make sure the time period for the warranty is specified.
A binding arbitration clause is also a good inclusion in the event a disagreement occurs. Arbitration may enable you to resolve disputes without costly litigation.
Thoroughly review the entire contract and be certain you understand it before signing it.
Consider the scope of the project and make sure all items you've requested are included. If you do not see a specific item in the contract, consider it not included. Never sign an incomplete contract. Always keep a copy of the final document for your records.
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What Can I Expect?
Before work begins, ask your contractor what inconveniences may occur while the project is underway and plan for them accordingly. Be sure your contractor is aware of vacations or special events so that he or she may schedule appropriately.
Move personal property from construction areas and declare all work zones off-limits to children and pets.
Be sure to put all changes in writing if your remodeling project is modified while work is being done. Both parties should sign the amendment.
Keep a job file including contract, plans, specifications, invoices, change orders and all correspondence with the contractor.
Request a contractor's Affidavit of Final Release be provided to you at the time you make final payment and a final waiver of mechanic's lein. This is your assurance that you will not be liable for any third-party claims for nonpayment of materials or subcontractors.
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Provided by the National Association of The Remodeling Industry (NARI) www.nari.org
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