Reno guide: How to handle problems with contractors

4. Unexpected changes in cost.
Older homes inevitably present unexpected quirks. With larger jobs, contractors should be expected to prepare a "change order," which is a written explanation of major unexpected developments, with costs, for you to approve and sign. If a serious dispute arises, you may turn to an architect or a construction arbitrator to resolve it. As a last resort, you may cancel your contract if you have included a termination clause.

5. Work left in an unfinished state.
Hold back a portion of payment until the work is complete. When the whole job is finished, your contractor should ask you to sign a certificate of completion. Don't sign it until you and the inspectors are satisfied with the work. If a licensed contractor fails to honour contractual agreements, report them to your region's licensing authority. Notify your local homebuilders' association, too, says Stephen Dupuis, CEO of the Building Industry and Land Development Association. "We are not going to be arbitrators," says Dupuis, "but in extreme circumstances, we're going to bring our efforts to bear."

Money Talk
Holdbacks – set amounts of the overall cost of the job temporarily withheld as insurance against contractor complaints – help protect you as a homeowner. Here are three types.
• A Seasonal or Delivery Holdback is in case work is delayed due to weather or unavailable supplies.
• A Deficiency Holdback is to make sure contractors stick around until you're satisfied the job is finished.
• Legally required, a Builders Lien Holdback protects owners from liens placed against the property. The percentage of the bill held back is determined by provincial law, so check with your building authority.

Check it out
• www.renomark.ca to find contractors recommended by homebuilders' associations.
• www.eRenovate.com offers your project to member contractors whose credentials have been verified.
• www.cmhc.ca/en/co/renoho has a fact sheet about hiring a contractor and a sample contract.
• www.holmesonhomes.com

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