I need to hire a contractor, what do I do?
I have found that most contractors do not want to lose a client and certainly do not want to be sued. As a result, we have resolved dozens of construction disputes with little more than a demand letter to the contractor.
Craftsmen vs Builders
Craftsmen view themselves as service providers, not unlike artists working in construction, with their art being the crafts they provide to their clients.
On the other hand, builders tend to be businesspeople operating in the construction industry. They concern themselves more with the finished product that they are hired to provide, whether that product can be a new kitchen, a new house, or a new commercial building.
Approaches to Construction Projects
The difference between the two types of contractors comes down to their differing approach to projects.
Craftsmen’s Approach to Projects
Craftsmen look at each project as a reflection of themselves, in many ways striving to create a finished project that when people see it, they will see a reflection of the craftsman in it.
Builders’ Approach to Projects
Builders see each project as a product, and work with the goal of producing a quality product for their client on time, on budget, and with the quality of materials and workmanship contracted for.
Variability Among Contractors
The lines between the two types of contractors are not always as black and white as when you are dealing with large corporate construction companies, which are first and foremost, businesspeople, concerned with making a profit. It becomes less clear as move down toward small home remodeling companies and sole owned building companies who attach themselves more closely to the project.
Benefits of Hiring Different Contractor Types
Both types of contractors offer benefits. Craftsmen are often more willing to customize their work to meet the client’s needs and can be more creative. Builders are less likely to customize their work and they tend to be less creative.
Choosing the Right Contractor for Your Project
Which type of contractor would be best for your project will depend on what you want to achieve with your project but in choosing your contractor, whether a craftsman or a builder, there are a few cautionary notes you should consider:
Challenges with Craftsmen
Craftsmen, being the artisans that they are, can be more difficult to work with and are more prone to disagreement with property owners when their “vision” of the project differs from the property owners. Craftsmen also tend to be less organized; they lack the resources of builders, and their projects can be subject to more frequent delays than a builder.
Challenges with Builders
Builders, while normally better resourced and operated than craftsmen, are less likely to compromise than a craftsman if a dispute arises, which can lead more quickly to litigation in the case of serious disputes.
Legal and Practical Considerations When Hiring Contractors
Regardless of what type of contractor you hire, attention to details will help your project more smoothly:
- The contractor you hire should be licensed.
- You should get references from any contractor you are thinking of hiring and you should check those references.
- You should have a written contract with your contractor.
Understanding and Negotiating Contracts
Most contractors use their own contracts and expect the property owner to sign the contract as drafted. Don’t sign any contract until you clearly understand what the contract says and what your obligations are under the contract.
Adjusting Contract Terms
Seek clarity on any points you do not understand, negotiate any provisions of the contract you do not like, and add any provisions you want, such as performance penalties, and the like. Paying a lawyer for an hour or two to help with this can pay big dividends and may be well worth the cost.
Managing Contract Changes and Disputes
Once you have the contract in place, hold the contractor to the terms of the contract, but be prepared to compromise if events occur during the project that warrant a change in the terms of the contract. If you do compromise and change the terms of the contract, make sure that the changes are agreed to in writing and signed by both you and your contractor.
Legal Support Throughout Your Project
Finally, do not be afraid to speak with an attorney about your project, your contractor, and your contract.
Having an attorney available to you before and during the project, while adding some cost to your project, will go a long ways to adding clarity to the project, avoiding pitfalls during construction of your project, and in resolving the occasional disputes that inevitably arise in construction projects.
I have found that most contractors do not want to lose a client and certainly do not want to be sued. As a result, we have resolved dozens of construction disputes with little more than a demand letter to the contractor.
In those rare cases where a demand letter cannot resolve the matter, early evaluation of your case will go a long way to minimizing the impact of your contractor’s actions on your life and your finances.
If you are thinking about hiring a contractor or have questions about a contractor’s performance on your project, give us a call, our first half hour consultation is free.
After that consultation, if you need our help negotiating a construction contract, or in resolving a construction dispute, we will work with you to meet your needs efficiently and cost effectively.