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Construction Industry

Are Contractors In Construction Industry Paid Well?

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Introduction:

A home is truly a family’s prized possession and the families that build their own home will vouch for the fact that it is nothing less than a labor of love. Once the home is built, more often than not, we forget about the people who worked behind the scenes and help construct the dream. The construction industry is filled with such skilled workers without whom building a home will never be a reality.

Finding the right home contractors:

Building a home, home improvement or home remodeling has different needs and hence they need different people with certain skill sets to undertake and successfully complete the task. It is also possible that when you need to get a task done, the different home improvement contractors or home remodeling contractors will most likely give you different quotes for the exact same job. So it’s important to find the right home contractors according to the needs of the job to be done and your budget.

Types of contractors:

The three main types of contractors based on the contracting services would be:

  1. General Contractors
  2. Specialty contractors
  3. Freelance workers

General contractors:

The general contractor can be described as the head of the project. He organizes and decides the strategy of getting the task completed. He oversees all the different required aspects of the project such as permits, legal requirements etc.

He will decide and schedule the different people to do their jobs such as plumbers, electricians, roofers etc. so that the tasks can be done efficiently and in the least amount of time.

Since the general contractor acts as a supervisor overseeing all the aspects of the job, he is most likely not to do any of the work himself.

General Contractors

Specialty contractors:

These contractors usually take care of specialized services such as plumbing or termite treatment. They have a team and they are licensed and insured. There might a large number of local home improvement contractors in your area and it would be a good idea to search for them in the local contractor’s directory and check their credentials before hiring them.

Specialty contractors

Freelance workers:

Freelance workers are the ones who might have some experience in the field of construction but they might not be able to complete a difficult task themselves due to lack of expertise. It would mostly be necessary to demonstrate and supervise the task assigned to them.

How much money do they make?

  1. General Contractors:

The advantage of hiring a general contractor is that he is your single point of contact for the project. You hire him and then only pay him collectively for all the tasks that need to be done. He will most likely charge you an extra amount of the time and energy he spent on finding the required subcontractor.

Also, general contractors charge you an extra overhead charge since they are the ones managing the schedule, budget and personnel for your project. This overhead charge could increase your cost by approximately 10% to 30%.

  1. Specialty contractors:

Specialty contractors are most definitely not the cheapest. They have their licenses, insurance and credentials in place and they are going to charge you a decent amount of money for the time they spent in doing so.

  1. Freelance workers:

Freelance workers are probably the ones whose labor cost would be the cheapest. The reason being that while they would have an overview of how to get things done, they might not be fully equipped with the knowledge or experience to solve it by themselves.

Are contractors in construction industry paid well?

Since most of the contractors do different kinds of jobs, and they do not have set salaries, their pay would be dependent on the magnitude of the projects they handle. While some may make a huge amount of money on large construction contracts, the others might not be so lucky.

Since the construction industry is a competitive industry due to its contract process, the margins on the various jobs could range from as low as 3 to 4 percent to as high as 15 to 75 percent.

As per a recent survey, the construction industry seems to be enjoying the beginning of a boom and hence an increase in a number of jobs and wages. It is observed that the pay for contractors has increased by an average of about 5%.

The construction industry is not a steady one, with its swinging ups and downs. The downside to this is that while some contractors make huge margins, some others barely get by during a lean cycle.

contractor's references

How to choose the best residential contractor?

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Choosing home contractors or residential contractors can be a tough task. Apart from verifying if he has a residential contractor’s license, there are other aspects that need to be considered. The factors to be considered include experience, credibility, fees, background etc., there is a contractor’s directory which will give you a list of local home improvement contractors. There are local contractors’ directory and HVAC contractor directory which have a list of the home contractors. The below section gives a list of tips which will help you choose the best residential contractor.

Assess you need

There are many types of home contractors; they have a different experience, thought process and skill sets. The home improvement contractors improvise on the structure that is already there, they do not alter the existing structure. The home remodeling contractors demolish an existing structure, keep only the key load bearing walls and make necessary alterations. The entire look and feel of the house will be different after the remodeling is done. Based on your need of whether you want to build a home from scratch or improvise or remodel the house, you have to choose your contractor.

Referrals for home contractors

It is best to ask around for referrals, your friends and family may come in handy. They may recommend a contractor only if he has been able to do a good job. Your neighbors may also offer help, you can visit to see for yourself if the results are satisfactory before you approach the contractor.

Referrals for home contractors

Do the relevant background checks

Do background checks to understand the ability to make timely delivery, professional execution, optimizing costs etc.,  Contractors may promise the moon but may not be able to make timely delivery. You may not able to opt out of the situation, hence checking on his previous commitments and whether he has been able to complete it on time is important. Whether the contractor is able to professionally execute the plan is pertinent, many of them fail to follow the plan. They make impulsive changes which may leave a lasting impact on your home. Also, many contractors, leave the project mid-way, this way you will have to wait till the contractor makes time for your project. Input costs have to be competent; the contractors may have tie-ups with suppliers who provide a commission for the contractors. You will have to keep watch to ensure that the materials bought are in line with the requirement and are within your budget. Not keeping track of this aspect, will only inflate the budget substantially.

contractors background checks

Does he have a license?

Remember to check if he has the relevant valid license. Get a copy of his license for reference. Do have a look at the original license to ensure that it is not a fake one.

Does he have insurance?

Hire a residential contractor with insurance or worker’s compensation, this will protect you from legal hassles. Also, if the contractor is injured while on duty, you need not bear the expenses.

Ask for references

Ask the hired contractor for references, call them up and check regarding the credibility of the contractor. You could also visit the place to physically inspect the property.

contractor's references

Compare the fees of multiple residential contractors

If you have got many referrals, then you may have to collate additional data on experience, background checks, fees, license etc., the fees should be critically examined to ensure that it is within your intended budget.

Review contract

Get some help, friends/family or legal advisor to review that contract that you sign up with your home contractor. This is an important document which will be the only reference point, hence, ensure you understand every aspect before you sign on it.

 

contractor tools

5 Things Every Residential Remodeling Contract Should Have

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Remodeling your house? You must have gone through the local contractor’s directory to find the best building construction contractors to help you remodel your old house. When you are remodeling, you main criteria would be a better design, which can be executed easily at a pocket-friendly budget, so that it doesn’t, after all, feel like building a new house all over again.

Select Wisely

When you go through the contractor’s directory looking for the perfect home remodeling contractors, you must ensure they have a valid residential contractors license. Without this license, you cannot get your house plans approved legally, thus posing a bigger problem in the future. Working around your house and remodeling yourself is one thing, but getting a professional residential contractor to do the job is whole other thing.

Home Contractors

When residential remodeling contractors or residential construction contractors are involved, you need to execute a legal residential remodeling contract. It is always advisable to have a legal attorney execute the written contract, as having the expectations and promises in writing offer better clarity. Here are a few must haves in your contract:

Project Description

A detailed description of what the project exactly is should be written down. It should include all details such as the size of construction, materials or products to be used along with the charges, estimated time and the cost of the project. If the charges are not certain due to changing products or labor charges, a rough estimate should be provided. This enables you to know the approximate budget and plan accordingly. Always ensure there is a delivery date or time frame mentioned so that you are left waiting for the project to be completed.

Role Of The Home Contractors

The role of the contractor should also be mentioned clearly. Their job does not stop with just the construction, they need to get the required permissions, certificates, remove debris and hand over the completed project to you.

Payment Details

Details regarding how often the home improvement contractors will be paid, the number of installments and amount of each installment based on targets should also be mentioned. The initial pay up from your end should be not more than 10% of the total estimated cost. Also, only the final 10% of the cost should be payable while the project is being completed and handed over.

Lien Waiver

When you use commercial construction contractors, they will have a number of laborers working on your project. Any of them can place a lien claiming nonpayment for the job done. Your contract should clearly state that you are waived of any lien and a legal waiver should be provided for each payment. You should be provided with signed statements from the contractors stating that your payments were used to pay off the laborers and the purchased materials so that you are totally protected from any such issues.

Changes’ Procedure

It is very common to change your mind once the construction is underway. You may have a new idea that is better or more suitable to the existing model, your contractor could face some unforeseen issues that require changes in the plans, etc. whatever the changes may be, it should never happen without your approval. Hence your contract should clearly state the procedure to be followed when a change to the original plan has to be made. Ensure it always goes through you and requires your signature before any deviations happen.

A Contract Is A Must

All these 5 are an essential requirement for any home remodeling contract. This ensures your local home improvement contractors don’t remodel your house to their needs and you are in total control. When you pick that contractor from the HVAC contractor directory, the first thing you must do after verifications is to draw up a contract that will legally bind both the parties.

fire damage restoration companies

How to deal with extensive fire damage ?

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Extensive fire damage can be hard on the pocket and on you emotionally; not only your property but memories and articles too disappear into smoke.

I want to emphasize the need for immediate action after a major fire. Yes, the fire fighters have done their job and put off the flames but there is so much that you should do to protect your property and goods from further irreplaceable damage.

What happens in extensive fire damage?

In any fire accident, these are the common things that you will encounter:

  • Soot
  • Smoke
  • Water damage

Why should you act fast?

Immediately after a fire the following things happen which necessitate the need for immediate action.

  • Soot: Once the fire is put off, soot settles on every part of the house; there are certain articles that may be permanently damaged while others can be restored and repaired. Soot discolors the property.
  • Furniture is affected: Wood, metal, glass, upholstery, tiles nothing is spared; the fire quenches its thirst very rapidly. Wooden furniture might be fully burnt or will definitely need some refinishing; metal begins to rust and corrode; walls turn yellow, clothes are permanently stained and flooring too will be damaged.
  • Water Damage: During a fire, water pipes and tanks too will be affected; they burst leading to water damage of your goods. Your carpets and floor need to be dried as quickly as possible to prevent mold and mildew formation. Water will also affect the electric sockets in the house.

Why is professional help necessary?

Putting off the fire is the beginning of a tough process of restoration. It is important that you seek professional help because the ash and smoke will not only discolor the property and the goods inside they will lead to irreparable damage to the entire property which will lead to sky rocketing costs of restoration if not addressed instantly.

What will professionals do?

You need specialized detergents and odor fighters to get rid of the smoky odor from the house. A professional company has the manpower and the adequate tools to address fire damage. They will come and assess the damage; they will also help you salvage at least some of your goods and help you in repairing the rest.

Removal of soot

The first thing to do after a fire is put off is to remove soot from your carpets, walls and other items in the house. Professionals use heavy duty vacuums to remove the soot. The chemicals used for soot removal will depend on the paint used and the finish rendered to your walls.

Deodorizing

Smoke and ash can settle all over the house from a tiniest crook to a large surface.  Your household deodorizers will be ineffective in extensive fire damage.

Professionals use a special chemical to deodorize your clothing, upholstery and carpets. They might also use ozone treatment to break down the smoke molecules and release the odors.

Thermal fogging for Smoke removal from Walls

Smoke can often permeate through walls and remain trapped there. Hence if the treatment is not thorough you will be accosted with a smoky odor time after time.  Thermal fogging is a method used by professional to neutralize smoke odor.

Time for action

It is not easy for an individual to get rid of soot and smoky odor from the premises along with shattered glass, broken pipes and burnt cabinets.

The professionals are well equipped to deal with these situations and they will save you effort and if action is taken immediately money too in the restoration process.