Laws and Insurances for Contractors - What do I need to know?

So you find yourself in the fortunate position that you are ready to hire a contractor for a remodel.  As we've discussed in the last two posts, there really is a lot of homework that you, the consumer, should do and a lot of information that you should know prior to hiring someone.  And while following these steps won't guarantee you a perfect outcome, it will greatly reduce your chances of having a problem.  Now we continue to explore what laws, licenses and insurances you need to know to insure that you are picking an appropriately protected contractor.  Because the fact is, if you hire someone who does not follow the laws, have the proper licensing or carry adequate insurance, you are opening yourself up to a whole host of issues.  We will first address laws and licensing and in the next post, we will look at insurances.  There is actually a lot of info to go over!

First, the laws - this is a tough topic to address quickly.  The fact is that we are required to follow laws for our state as well as the locality in which the job is located.  For example, a MD state law requires contractors to be properly licensed - so, a plumber must carry a plumbing and/or gas fitter license, an electrician must have a electricians license and HVAC has their own licensing requirement.  Additionally, excavators, utility contractors, well diggers, and septic system installers are all required to carry various individual licenses.  So please don't hire someone without checking all of those licenses!

However, all other contractors, from painters and landscapers (yep, that is correct!) to counter top installers, general remodelers and carpet layers must carry an MHIC license.  What is that, you ask?  That is a Maryland Home Improvement Commission license.  It is a legal requirement in the state of MD to have one if you are doing *any type* of home improvement work not covered under a more restrictive license such a plumber, gas fitter, electrician, etc.  If you are building a home, your home builder must have what we commonly call an "MHBR" or Maryland Home Builder Registration number.  Please note that if your contractor does not carry proper licensing YOU as a homeowner lose quite a few protections under Maryland law should there be a problem.  According to a Carroll County construction attorney, the MD court system has even gone so far as to refuse to recognize contracts between a homeowner and an unlicensed contractor.  So that means you have extremely little recourse should there be a problem.  We encourage you to explore licensing necessities by visiting  MHBR info for info on MHBR or MHIC's site to explore MHIC information.

Further, the EPA has instituted a new rule that requires work on residential structures built before 1978 to be complete by EPA certified remodelers.  See Lead RRP Info for a quick and easy glance at information about this as well as links to the EPA web site for further information.  This certification is commonly called "RRP certification" which stands for "renovate, repair and paint".  This is *not* lead abatement.  This rule is simply meant to contain lead dust that may arise from renovation work.  In a nutshell, if your work requires 6 square feet or more of interior painted surfaces or 20 square feet or more of exterior painted surfaces.  So, you can no longer have someone come and pressure wash the exterior of pre 1978 house without using a certified RRP remodeler.  You cannot disturb drywall by scraping to paint your pre 1978 house without using a certified RRP remodeler.  You cannot buy new granite counter tops and have the contractor remove your old ones without using a certified RRP remodeler because that disturbs more than 6 square feet of drywall.  And the fines are huge at $37500 currently.  This is a new rule and we fully expect to see some changes in it.  Honestly, the changes will probably make it stricter.  States are allowed to take over enforcement of the rule; many already have and many more will as once they take over enforcement they are also allowed to pocket the fines for themselves.  Mississippi currently has the most restrictive rule; the states are allowed to make the law more restrictive but not less so.  As a homeowner, especially one who owns a house built pre 1978, you need to ask if your remodeler is RRP certified.

These are the primary licenses that you need to know about and all of these fall within the bounds of the laws, either federal or state.  In MD, having a business license *does not* constitute holding an MHIC license.  So, don't just ask a contractor if he "holds a license."  You want to ask what his MHIC number is and then check to be sure it's valid.  In the case of the lead certification, you can either ask to see the certificate or you visit the EPA's web site.

Please also note that each local jurisdiction may have their own laws governing what contractors can and cannot do.  However, each local jurisdiction will *definitely* have laws, codes and ordinances governing your building codes.  When you are in the planning stages of a project, it is a good rule of thumb to call your local codes office and find someone there to discuss your project with.  For example, there is no point in paying an architect to design a two story addition to your home only to find out that you can't do it because the addition would come too close to the property line.  So, before you go too far, particularly if you are working on a big project, check with your codes office.  A well versed remodeler who is accustomed to dealing with larger scale remodels will also generally be able to offer you some knowledge about what your local authority requires.  However, be aware that many contractors write into their contract that the homeowner is required to "pull permits."  And you may need a permit for plumbing, one for electrical, one for utility, etc.  So, do your homework on this aspect as it can really cause problems for your project if you do not pull the proper permits and have the proper inspections at the right times.

There is a lot of info contained in this post so far. . .we will continue this line next time but make sure to let us know if you have any questions or want any specific topics addressed! And don't forget to check out Simply Stone for further answers to your general kitchen, bath and counter top remodeling questions.

There are so many contractors out there - where do I start?!

What a dilemma!  You want your remodeling project done right, done well, and done for a fair, value based price.  Right?  So how do you tell the difference between Contractor A and Contractor B when Contractor A's price is cheaper (and therefore a lot more attractive to your wallet!) 

The fact is that you really do have to rely on the law of "you get what you pay for."  We recommend the rule of getting three prices - and this can be time consuming for you, the homeowner.  When you have the bids, really do the work of laying out what each one includes OR excludes because this is exceptionally important. For example, perhaps bid 2 is cheaper than bid 1 by 20% and bid 3 by 10% but you notice that that bid 1 includes dry wall repair and painting and the others don't say anything about that.  In fact, bid 2, the cheapest one, doesn't list a lot of detail for the job.  We've actually seen bids hand written on the back of a business card.  We don't consider these valid bids - and neither should you no matter how attractive the price is.  Why?  They have no detail to them and therefore, you have nothing to stand on when you ask the contractor why he didn't complete the work that you thought he'd be doing.  His response?  "That's extra and not included."  So, make sure that the bids are detailed bids and list the entire scope of work - and don't be afraid to ask a contractor to explain his bid and his pricing.

We still encourage the trust factor primarily over all other factors - this contractor is going to be in your house with you, with your family and with your belongings.  Is he trustworthy?  How does he hire his crew?  Are they background checked?  Ask. . .it's important.  And yes, we firmly believe that a contractor who is trustworthy and knowledgeable, takes time to respectfully go over your job and answer your questions and can demonstrate that he follows safe business practices and laws is worth more than a contractor who does not exemplify these qualities.  Paying more for a contractor of this level is like buying an insurance policy - you can pay less with someone else but if something goes wrong, you've got much less recourse.  And something will go "wrong" during your remodel - the larger the remodel the more likely that any of the following things will happen: something will be discovered that wasn't known prior to starting the demolition; a product will be ordered incorrectly, arrive damage or simply arrive as the wrong product because the factory sent the wrong item; you will pick an item that you don't like once it's in; the weather will take the project off schedule.

The best contractors walk into a project knowing the likelihood that these things will occur, they plan for it, try to prepare you for it and work with you once something comes up.  As homeowners, your responsibility is to know that something like this is going to happen and be willing to work with the contractor when it does.  Because the fact is that sometimes it's unavoidable and sometimes it really is someone's fault whether the fault lies with the homeowner, the contractor, one of his employees, or a supplier.  We are all human; focus on how the error is handled not that the error happened and you'll get back on track much, much quicker. 

Next time, we'll discuss the laws and insurances that contractors must have and that you need to know!www.simplystone.biz

How do I start a Kitchen or Bath Remodel?

We get so many customers who ask this question - there is a lot of excitement that goes into a remodeling project but there is also a lot of stress and worry.  We've noticed that much of that stress comes from the idea of choosing a contractor.  To most consumers, choosing the right contractor is intimidating - this is an area in which making a mistake can make or break the project.

There are a lot of resources that can help anyone make this decision.  First, we urge everyone to research contractors available in your area.  The most important place to start in Maryland is with the Maryland Home Improvement Commission.  Check a contractor's license status.  This is the only way to be sure that the contractor is not only licensed but that the license is current and valid.  In Maryland, it is illegal to perform home improvement work on a residential structure without an MHIC license.  Plumbers, electricians, and HVAC techs are all licensed through their industry specific licensing authorities through the state of MD.  However, as soon as anyone, including painters, landscapers, and carpet layers, performs any type of work on a residential structure, they are bound to hold an MHIC license.  Additionally, it seems that the Maryland court system is backing up MHIC laws by not recognizing contracts between homeowners and non-MHIC licensed contractors.  So, when you work with someone who isn't properly license, you really are losing protections that you may very well sorely miss!

The second avenue for searching for a contractor that can be extremely beneficial to the homeowner is looking for a contractor through industry organizations.  The National Association of the Remodeling Industry, for example, is a national organization with local chapters whose purpose is to promote the Professional Remodeler.  What does this mean to a homeowner?  First, NARI member contractors are bound by the NARI code of ethics.  Additionally, as a member of the Greater Baltimore Chapter of NARI, Simply Stone, for example, is also bound to maintain our MHIC license as well as our insurances.  Further, NARI has certifications such as the Certified Remodeler designation that prove to you, as a homeowner, that the Professional Remodeler who holds that certification has gone through 24 hours of coursework specifically focused on remodeling and has earned the right to carry that designation by passing the course.  For more information on NARI, NARI certifications and what being a Professional Remodeler means, check out www.naribaltimore.com or www.nari.org.

Check our blog next week for continuing information on what you can do to find a Professional Remodeler!  In the mean time, don't hesitate to let us know if you have any questions or wish to see certain topics addressed.

Welcome

Welcome to our new Blog.  We are very excited to be able to discuss all aspects of a remodel, be it a bathroom or a kitchen.  Our aim is to address some of your concerns and help you gain an understanding of what such a remodel might involve.  Our view is simple.  The more knowledgeable you are at the beginning of a project the better the results will be at the end of the project.  After all the end result is what it is all about.