In case you’re still not satisfied with these Top 10 tips for hiring a contractor, the disclosure statement will round them out for you. Most states require a licensed contractor to present you with a disclosure statement before the work begins; read it carefully.
A good disclosure statement will simply inform you of your rights, responsibilities and risks involved with entering into the business agreement with your contractor. It should provide an overview of the contractor’s business practices, any relevant business connections your contractor has and actions that you or the contractor may or may not take in case of a disagreement.
Can the contractor place a lien on your property if you don’t pay for the work? Does the contractor stand to make additional money from your property through a subcontractor or another related business venture later? By law, information like this must appear on the disclosure statement. It may also show when the contractor must notify you of payments it makes to subcontractors, instances when it’s a good idea to obtain title insurance, and more. This is where things can get complicated. But be sure to read and understand the disclosure statement before the work begins!
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