Do’s and Dont’s
When hiring a Contractor
(some things to consider)
- Do plan your project carefully. The more you know, the less likely you will have a problem.
- Do shop around before hiring a contractor. There are over 900 licensed contractors on Guam. If you only talk to one or two, you are doing yourself a disservice.
- Do get at least three written bids on your projects.
- Do provide accurate plans and specifications for bids from contractors.
- Do check with Contractors’ License Board to see if a contractor is properly licensed.
- Do check out all potential contractors.
- Do look at work the contractor has completed within the last year.
- Do ask your contractor to prove he can furnish a performance or completion bond if required.
- Do consult with more than one lending institution regarding the type of loan to obtain.
- Do make sure everything you and your contractor have agreed to is included in your contract.
- Do ask your contractor about inconveniences that may occur and plan accordingly. (Will you be able to store your furniture in your new home before it is finished? Will there be water, sewer, or power outages once you move in? How about mud during construction?)
- Do keep a job file.
- Do make sure you receive lien releases from your contractor.
- Do make frequent inspections of the work, including a final walk-through.
- Do consult an attorney if a lien is placed against your property.
- Do try first to negotiate with the contractor if problems or disagreements occur.
- Do Not hire an unlicensed contractor.
- Do Not hire a contractor without first shopping around
- Do Not act as an owner/builder unless you are experienced in construction and are prepared and willing to accept the risks
- Do Not sign anything until you completely understand it and agree to the terms. A $100,000 debt is worth talking to a lawyer about.
- Do Not hesitate to ask questions about the contractor.
- Do Not make final payment until you are satisfied with the job.
- Do Not hesitate to call the Contractors’ License Board if you have questions about your contractors performance.
Be Sure Your Contractor Includes:
- The name, address and license number of the contractor and the name and registration number of any salesperson who solicited and negotiated the contract.
- The dates (not just number of working days) when the work will begin and be ready for occupancy.
- A description of all work to be done, a description of the materials and equipment to be used or installed and the price for the work.
- A schedule of payments showing the amount of each payment in dollars and cents, and the work that is to be completed before the payment is made.
- If you feel you need, or your lending institution required it, a performance of completion bond.
- A copy of your contractor’s Worker Compensation and Liability Insurance
- A notice to the owner regarding Guam’s Lien Laws and the rights and responsibilities of the owner.
- A requirement for a general release of Lien from the contractor before any payments are made.
- A description of what constitutes start or work and completion.
- A notice that the failure of the contractor without lawful excuse, to commence, continue, or complete work by certain dates constitutes a violation of the contract.