Selecting a contractor is an important decision for all consumers. Construction contractors are required to be licensed in Denver to ensure qualified individuals perform specialized work in accordance with Denver's Building Code. Examples of specialized work requiring a Denver license are installation of new plumbing or new electrical fixtures.
The legal authority of Denver Community Planning and Development is to establish building codes and enforce conformity to those building requirements. Your work with suppliers and contractors is a civil matter. Please review the following consumer tips prior to hiring a contractor.
Problems to Avoid
Get references. Be sure to talk to and visit at least three previous clients and utilize the Better Business Bureau at
http://www.denverbbb.org. You should also insist on proof that the contractor is
insured and bonded. Check with the insurance company that the contractor's policy is current.
Verify that your contractor has a Denver license
- Insist that the contractor acquire all necessary building permits.
- Avoid contractors who won’t give a receipt for payments.
- Check that addresses and phone numbers are legitimate on business cards.
- Ask for a backup plan if the contractor becomes ill or unavailable for any reason.
- Get at least three bids in writing.
- Never pay cash.
- Avoid contractors demanding full payment up front without doing any work. Deposits for materials are commonly required. A reasonable pay schedule might include one-third upfront, one-third near completion and the final third after everything is done and cleaned up.
- Avoid contractors who will work without a written contract. Have a written contract detailing the work to be performed, cost associated with each task, and timeframe with estimated start and finish dates. Sign a contract that protects against liens from subcontractors.
What to Include in Your Contract
After selecting a contractor, get a written contract detailing the work to be performed, the costs associated with each task and a timeframe with estimated start and finish dates. Sign a contract that protects against liens from subcontractors and consider these additional tips for the completion of a good contract:
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Written on company letterhead.
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Contains the company's name, address, phone numbers and license number.
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Contains the consumer's name, address (where work is to be performed) and phone numbers.
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Is dated when it is written.
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Provides a payment schedule.
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Includes a termination clause.
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Clearly states whether permits will be obtained, and who will be responsible for "pulling" them.
*Warning: Beware of unscrupulous contractors that suggest you, as the homeowner, secure the permit in your name. The permit holder is legally responsible for the completion of the job to code standards.