Washington state homeowners are expected to spend an average of $8,822 on repairs and renovations for their homes in 2023. This is according to a recent survey by HomeAdvisor, a marketplace for home improvement services. For a 30 unit condominium thats over $260,000, which is a significant amount.
In Western Washington, we see there is shortage of good, ethical contractors. Those companies are in high demand which causes Condominium and Homeowner Association to seek other companies that may not have a great reputation or track record. Most board members do not know that in Washington State anyone can become a licensed contractor for $75 and a performance bond. When we are working with associations we frequently hear about money wasted on projects that never get completed or budgets doubling once the contractor starts the project.
Since renovations and repairs are major expenses, here are five common lies to watch out for when hiring or working with a contractor in Washington state.
1. “I can do it in a month.”
Shady contractors often say they can get the job done faster than it will typically take. “A lot of them want to promise back to you whatever you say. “I want this job finished in a month. ” If they are too quick to answer yes, I would be highly suspect.
We recently spoke to an association that was having the laundry room and bathrooms remodel in their complex. “The total estimate of the time, from start to finish, was underestimated by 100 percent, says the board president. While the contractor finished, the work was so poor that we had to hire another contractor to redo the renovation. The first contractor quoted the work at $50,000, but the association already spent double that amount and is trying to get the changes completed.
2. “I need 75% up front.”
While many contractors may require upfront payments for purchasing materials, such as insulation and drywall, most contractors shouldn’t demand you pay a significant amount, before the project is completed.
In Washington State contractors can not ask for more than 50% upfront. Then they can collect progress payments. I recommend that the milestones be in the contract along with the maximum payment for each milestone.
3. “That wasn’t included in my quote.”
It pays to have the entire scope of the project defined in the contract. But to be fair many issues are not visible until the demolition is complete. Reputable contractors will talk about doing a “change order” when this happens. The change order is an amendment to the contract and should clearly specify the new work and the cost for that. If the contractor tries to do this verbally without a written order, this should raise a flag.
Some unethical contractors base their business model on change orders. Some contractors will low-ball their estimate while purposefully not including certain work, such as painting, that the association may not know to specifically request. When asking the contractor about these missing items, the association will typically be told that these missing items were not included in the low estimate.
4. “We don’t need a permit”
Never believe a contractor who tells you that you don’t need a permit for the work you’re hiring them to do. Maybe you don’t! Or maybe the contractor just doesn’t want to go down to the local building department at 8AM and spend an hour getting one. They may not be lying, but don’t believe them. Some contractors expect the owners to apply for the permits and will do the job even if there was never a permit. Permits mean that an independent party – the building inspector will ensure it meets the current building codes. A good rule of thumb is that most repairs, don’t need a permit if they are under a certain dollar amount. That amount is determined by the local building department.
5. We will have crews working everyday until the projects complete…
Sure, this projects is a big deal to you, but for your contractor, it’s just another job. “Contractors juggle jobs — it’s just part of the equation,” Contractors are trying to satisfy multiple clients and that means they will move crews around to keep up the illusion that your project is the most important. The Pacific Northwest gets really wet and cold in fall, winter and spring. This means they try to cram all the exterior projects into the dry months which means they juggle. They won’t tell you these things, because it makes associations nervous.”
Your best bet is to stay in communication with the construction company owner or project manager. Expect to hear about supply chain issues or people calling in sick as excuses. We had one company say their entire crew had Covid but another owner in the association saw the company’s trucks at another location. Whether they had multiple crews or not, it caused a level of mistrust with the contractor.
The majority of contractors are honest, highly skilled professionals who work hard to provide a quality product. But when it comes to dealing with them, the key phrase to remember is “trust—but verify.”
