Here are several rules of doing business which really help, that I have come to observe in contracting for home repairs:

• Unless you have absolute faith in someone (i.e. know them very well, and/or have done business with them many times before) don't ever give anyone money for work until you have value in place.  In other words, if they need paint to get started, go buy it for them and store it at your house until they get around to your job.

 
• Realize that a Contract is probably going to be of only one value to you: it serves to remind folks of good faith what it was they decided the deal was (which is a very good reason to have it).  I have been involved with construction contracts all my adult life, and I believe in signed agreements in everything I do.  But the only times I have ever seen the signed agreement used for anything other than as a handy reference for people of good will have involve litigation and in those cases it was a question of who could afford the best lawyer and the existence of a written agreement was of little consequence.  My point, however, is to not kid yourself that a written contract is going to be of much help if you are dealing with someone who is not reliable.

 
• Go to a lot of trouble to check out anyone whom you let into your house to do anything.  Lots of people use the ruse of giving estimates, even doing some work as a way to case your joint, or to rip off a deposit or down payment.  If you can't find anyone that you have a very good reason to trust, don't let them come into your house.

 
• Observe a basic principle when contracting for work to be done.  Insist that the value of the work in place be more than the amount of money that you have paid out.  Don't be the contractor's bank.  If they need a loan, suggest they go to a bank.  If you can afford to loan them money to carry out their business and for some reason want to do this, then sign a secured loan agreement with them.  Otherwise, pay them only after items have been delivered to your place and are under your care and safekeeping.  Reputable contractors have accounts at vendors and they can charge for materials and equipment.  The best arrangement is for you to pay them at stages of the project, and always a little less than the value of the work in place.  Thus, if something happens along the way, you always have funds not yet paid out to hire someone else to finish the job.

 
• I know this sounds harsh, but unless you have some kind of relationship with the vendor of the service you require that causes you to be willing to risk your money, these are the only ways I know to avoid an inevitable financial disappointment.

Girard Kinney, AIA
March 2001