The Business Newspaper of Howard County, Columbia & Laurel


Stay Out of Court on Your Next Building Project

March 2000

By Bill Rauser

If you decide to build a house or remodel your existing one, there are some things that you must know to avoid legal hassles.  Keep these suggestions in mind before and during your building process, and you’ll find that the project is hardly the nightmare it could have been.  In fact, your experience will be pleasant and exciting...a dream (home) come true.

  • Check those references

Evaluate the company or individual’s experience and track record.  Years in business are only one indication of a good company.  Make sure the contractor you choose has good credentials.  Contact the Remodelers Council of the Maryland Home Builders Association or the Maryland Home Improvement Commission and/or government Consumer Affairs Office for additional information on the contractor(s).  Financial stability and business practices are also important considerations.  Beware that home improvement contractors must be tested to earn a MHIC license;  home builders must buy a construction license.

Check the references of home builders and subcontractors to evaluate professionalism, performance, and quality of work.  Make sure the architect and builder have a reputation for sticking to their quotes.  Or, do they come in way over budget despite no significant changes by the homeowner? Remember, an experienced builder offers a vast knowledge of materials, resources, and buying power that far exceeds that of an inexperienced builder or the do-it-yourselfer.  Asking for references will not only allow you to talk with people who have worked with the contractor, but may even allow you to see a finished product.

Make sure your contractor is insured against claims covering such areas as worker’s compensation, property damage, or personal liability.  By asking these questions up front, you can save yourself money concerning legal problems later.

  • Get everything in writing

Not only should you make sure your contracts are in writing and clear, but be sure they include: change orders, start and completion dates, prices, a payment schedule, penalties that may be instituted against you, and a timeline.  Don’t rely on verbal agreements because they rarely hold up in court and the confusion factor is much higher.

Be sure to get any changes confirmed in writing, too.  These orders should include the brand, model, color, quantity, and size of all the materials that are going to be used on the job.  This way, if there are any problems or discrepancies down the line you have something to legally protect you.

  • Read your warranty

Evaluate the builder’s warranty program.  The most confident builders guarantee their own work for life and give you that warranty in writing.  Make sure you discuss and understand all warranty details before accepting a contract.

The bottom line to staying out of court is really open communications.  Rapport in the builder/homeowner relationship is vital.  Plain and simple, you must decide whether you like the person before you engage him/her and feel confident you can establish a productive relationship, rooted in open communication, with the management who will be responsible for your project.

Remember, this project is your project.  Select an architect and a builder who listen to you and who welcome your ideas and questions.  Just as important, choose an architect and builder who listen to each other, indicating that both are flexible and confident in each of their areas of expertise.  Finally, see if the architect and builder will assist in the selection of your lot to ensure what you want to build is just right...from the very beginning.

Bill Rauser is president of Rauser Professional Contracting. He can be reached at 410-833-3883 or br@rauser.com.

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Rauser Professional Contracting can be reached at 410-252-9494 or by email at:info@rauser.com

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