Homeowners and Renters

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Homeowners in Delaware face an uncertain path to hold a contractor accountable.  In many cases, even if civil litigation issues a judgement in the homeowner's favor, that doesn't stop the contractor from seeking work with other customers.  This is especially true of contractors engaging in construction fraud.  

A professional regulation board would be able to receive the complaint, request the relevant information, and issue opinions on the complaint.  If the contractor is found to be malicious or negligent, the board can issue penalties and/or revoke they contractor's license indefinitely or permanently.  As is the case in Maryland, contractors who receive a negative judgement from the MHIC board go onto a publicly accessible database for a set number of years.  

For renters, the existence of such board would potentially allow the renter to make a claim of inferior workmanship against a landlord making repairs that don't meet code, or contractors that fail to meet code and the landlord fails to correct the issue or file a complaint.  

In most cases, filing a complaint (or any legal avenue), would be a last resort option.  

Contracts should have an arbitration clause.  Look closely at this clause, as some of the details can sway the bargaining power one way or another.  Most importantly, this clause usually dictates the process to follow if a customer OR contractor have a dispute with each other.  A reasonable effort needs to be made by both parties to establish what the dispute is and if it is in breach of the terms of the contract and/or change orders.  

If there is NO contract, or an ambiguous contract, it will be difficult to defend the dispute IF the work completed meets local building code requirements.  

An example, if the contract states "install handrail", and there is a handrail installed that meets code, it becomes hearsay to dispute that the handrail is the wrong color or style.  Specific details help avoid issues down the road and protects both parties from stress by going over it early on in the process.

"Get three quotes" and "Do your due diligence" are common words of advice that homeowners hear... but it's seldom helpful.  Construction is extremely nuanced, and there is rarely only one correct way to build, so price shopping usually means a compromise in quality.  To say that Homeowners need to have due diligence places an unrealistic expectation of subject matter knowledge.  

Finding a contractor is like a job interview, and just like a job interview, the interview is going both ways.  While you're discussing the project with your potential contractor, they are also trying to see if you'll be a good potential client.  The Client/Contractor relationship is just like any other, you must find someone compatible enough to meet the needs of the project, your needs for communication, and you personality as a whole.  

While the contractor should be knowledgeable and professional, here are some tips for being a good potential client.

1. Before you call, know what you want, need, and what your budget is.  Often a contractor will visit you and give you a rough estimate for free; so don't just "kick tires".  In economics, demand is someone who is willing and able.  Most projects can be suited to a budget, but you must be honest with yourself and to your contractor about it.  Early discussion about the budget will manage everyone's expectations and an ethical contactor will not abuse your budget.  If you are financing, get your pre-approvals established before you call (and those junk mail pre-approvals don't count!).

2. TV vs. Reality vs. TikTok.  Many home improvement network shows tend to devalue the contractor; please don't expect haggling with the price to produce a good relationship with good results.  If the project is over your budget, have a discussion about where there is room for value engineering (similar results with alternative means) or simply cuts.  Also, unlike TikTok, the project will not cost $30 dollars and be done in thirty seconds.   Of course that's an exaggeration, but most quality contractors will spend more time educating clients on projects than they will selling projects.  We can attest that many homeowners are shocked by the amount of work in a given project.  On tv, those details are usually between edits or commercial breaks. 

3. Make sure to ask your contractor to explain parts of the quote you don't understand.  This is where you switch from price shopping, to product comparison.  Often large differences in price on the same product are a result of one company including "xyz" in their base services compared to what another might bill separately for "z".  Be skeptical, not cynical, of making decisions based on references; what contractor (good or bad) would offer negative ones?  

4.  Once you get all the information back, trust your instincts.  You should have spent enough time with the contractor before signing a design or project contract that if something still feels off either confront the feeling, or continue looking.  Homes are special places and expensive investments, it would be better to wait for the right builder than to rush into the wrong one.  It is also important to note that most contractors want to do a good job, be honest, and make a profit.   

If you worry that the contractor you like may not be qualified enough, ask for examples of similar projects, consult you local building official about a particular detail, or have the confidence to turn them down.  We (the staff) have made the mistake of biting off more than we could chew.  We made it right for the client, but made no profit.  That mistake can not be made too many times before the company becomes a small business statistic.  

YES!!

A contract should always be used to do any work on a home.  Verbal agreements are permissible under certain conditions, but, it doesn't take long to find someone with a story about missed expectations.  

A proffesional regulation board could provide construction specific parameters for Delaware Contractors.  For example, Maryland and many other states have special requirements depending on the job at hand, the age of the client, and add a second layer of consumer protection when it comes to debts that could accrue interest.  If I were a contractor and were to charge x% interest on late payments, I would legally have to notify you of the right to rescind the signed contract, provide copies of the right to rescind notice, and the client would have three days to cancel the agreement (five if they were considered elderly).  

We would like to add a section of this website that would include Delaware specific contract details for Homeowners and Contractors to reference.  Remember, most builders are in the business to build, not to be a contract law major, so free access to information would benefit all parties!