Be Aware of the Possible Drawbacks of Improvement Projects

Potential Problems with Home Improvement Projects

Hiring a professional does have its pitfalls, however. Putting your project in the hands of another person could have negative consequences. In some cases, a general contractor may complete a project but neglect to pay the subcontractors, laborers or suppliers he uses. Many states, California for example, recognize that the homeowner has a direct contractual relationship only with the general contractor. The contract typically binds the homeowner and GC, but does not necessarily bind the other parties involved in the project.

If subcontractors or suppliers are not paid by the GC (or the homeowner doesn't pay the GC), their only recourse is generally to place a mechanic's lien on the property. This lien is attached to the property's deed and can lead to foreclosure action if not paid off. The homeowner may also end up paying twice for completed work or purchased materials. Check your state and local laws prior to beginning the project to learn about responsibilities, rights and requirements in your area.

Another negative outcome may result in rapid deterioration of the new construction. Using cheap materials or poor workmanship can cause some modifications or additions to deteriorate quickly when faced with constant use, temperature changes, or other contributing factors. A homeowner might not recognize the potential problem when the project is newly completed. Make sure the contractor includes details about the materials to be used and subcontractors' licenses and qualifications in the agreement, and check for a warranty that ensures the alterations will stand up over time. If these details are included, the homeowner has a legal right to expect the contractor to use exactly what is specified.

A third possible problem arises from contractors doing unpermitted work. Local municipalities require building permits for projects over a certain size, typically when alterations or additions are constructed affecting the square footage of the building, for example adding a two-car garage. Permit requests must be approved prior to work being performed, and, in most cases, the contractor will do this for the homeowner. You're at risk for violation if unpermitted work is uncovered during tax assessments. Make sure your renovator has the appropriate permits in place before the project begins.

Overall, a qualified, credentialed contractor can be an important resource to homeowners looking to repair, update or remodel their homes. If you are satisfied with one project, you will likely look to that professional again for other projects. But don't forget, if you have found a quality, reliable contractor, others probably know about him as well and you may have to be patient when scheduling additional work. It'll be worth the wait if you know the work will be done well and on time.