Considering a Construction Project? Things You Need to Know

11/11/2010

 

Hiring the right contractor is an important decision. With the current economic climate, many consumers are opting for the less expensive alternative of hiring a contractor to improve their existing home or business rather than purchasing a different home with the desired upgrades. However, hiring the wrong construction contractor may lead to problems.

As an attorney who deals with a substantial amount of construction defect matters, I have represented homeowners who have encountered various problems with contractors including contractors failing to obtain required construction permits, performing work without the required registrations and insurance, requesting that home owners sign legally unenforceable contracts, failing to complete the home improvements in the time set forth in the contract, and performing home improvements with significant construction defects. I have also represented clients facing similar problems with commercial construction projects.

It is a fact of life that problems will happen. However, you can take certain steps to reduce the probability of having a home improvement project go wrong and achieving a successful outcome if the problem could not be avoided:

1. Have the Contract Reviewed by a Knowledgeable Attorney.

 

Many of the problems arising out of a construction project can be avoided if the project and terms and conditions are clearly set forth in writing and understood by both parties. In addition, the attorney should verify that the contractor has the appropriate registration, insurance, and permits to complete the project. While this is necessarily an added expense, the cost to review a contract is relatively insignificant versus the cost to litigate a construction matter should problems develop.

2. Know Your Rights.

 

New Jersey has enacted various statutes and regulations setting forth mandatory language to be included in construction contracts. While a whole litany of laws and regulations may apply to construction contracts, knowledge of the following laws and regulations is important:

Consumer Fraud Act

Home Improvement Contractor Registration Act

Truth-in-Consumer Contract, Warranty and Notice Act.

Plain Language Review Act

Home Improvement Practices Regulations

3. Check References.

 

Request that your contractor provide you with a list of references and contact those references to discuss the contractor’s job performance. Speak with your local construction official to see if your contractor has a good reputation. Ask to be shown examples of the contractor’s previous work.

4. Obtain Various Estimates and Know What You Are Getting.

 

The cost for a construction project can vary wildly between contractors. Oftentimes, the cause of the varying costs is the contractor’s estimate on which materials will be used for the project. If at all possible, request a specific description of all items which the contractor intends to utilize for your project.

5. Document, Document, Document.

 

Request that all of the promises made by the contractor be made in writing in be signed by the you and the contractor. Document, or keep notes, of all significant events relating to the construction project. Make and keep a well organized file of all the documents generated during the home improvements and retain this documentation for ten years after the completion date of the project.

6. When in Doubt, Seek Immediate Help.

 

The time to fix a problem is when it is first noticed. If you notice that the contractor has created a construction defect, made a mistake, or if something just ‘doesn’t look right’ have the project inspected by a different contractor or engineer. If there is a series of problems on your work site, discuss the matter with an attorney before the problems go from bad to worse.

7. When You First Notice a Problem, Contact an Attorney.

 

New Jersey law limits the time you have to file a claim. A problem which appears after the construction project has been completed can be indicative of more significant hidden defects. While drywall nail pops may be common in many construction projects, leaks, cracks, water infiltration, and loose fixtures may be caused by defects which should be inspected by an engineer and discussed with an attorney.

I sincerely hope that your construction project goes smoothly. However, if construction defects or construction contract disputes are plaguing your project, do not hesitate to contact an attorney.

Daury I. Lamarche, Esquire
November 11, 2010