What Does a Contractor Need to Tell Their Insurance Agent _ Pro2Pro _ This Old House

The Importance of Clarifying Scope with Contractors: A Guide to Avoiding Pitfalls and Ensuring Proper Coverage

When it comes to hiring a contractor for a home improvement project, it's essential to get one thing right from the start: asking about the scope of the project. As Charlie so aptly puts it, "what's the first thing you ask a contractor when they come to you?" This question is crucial in ensuring that both parties are on the same page and that the project is completed correctly and within budget.

Charlie emphasizes the importance of getting the scope of the project exactly right, rather than trying to sneak it or downplay it. "If you try to sneak it or downplay it, it's nothing but hurt," he warns. This can lead to a range of problems, including underinsurance, overspending, and even legal issues. On the other hand, taking the time to clearly define the scope of the project can help prevent these problems and ensure that everyone involved is satisfied with the final result.

One potential pitfall that Charlie identifies is contractors not being organized enough. "They're just unorganized," he notes. This lack of organization can lead to a range of issues, including forgotten paperwork, price increases for materials, and unexpected changes in scope. For example, if a contractor fails to file the necessary paperwork or collects certificates of insurance from clients upfront, this can create delays and even prevent payment.

However, Charlie suggests that these pitfalls are often avoidable with a little planning and foresight. "It's one of those things with a little planning you could take care of right away," he notes. For instance, contractors can ensure that they have all the necessary paperwork in order from the start of the project, rather than waiting until it's too late. Similarly, clients can take steps to verify their contractor's credentials and insurance coverage before signing a contract.

In addition to organization, Charlie also identifies the importance of clear communication between clients and contractors. "What are the pitfalls that you find that these guys run into?" he asks. According to Charlie, one of the biggest issues is that contractors often fail to ask for the necessary paperwork or certificates of insurance from clients. This can lead to a range of problems, including delayed payment and even disputes over liability.

Fortunately, Charlie notes that these problems are often avoidable with clear communication and planning. "I have people that call me and they're in a panic about a job that they did," he says. These situations can be avoided by taking the time to carefully review contracts and ensure that all necessary paperwork is in order. By doing so, clients can help prevent delays and disputes, and enjoy a smoother and more successful project.

Overall, the importance of clarifying scope with contractors cannot be overstated. By taking the time to get the details right from the start, clients can avoid a range of potential pitfalls and ensure that their home improvement project is completed correctly and within budget.

"WEBVTTKind: captionsLanguage: enwhat's the first thing you ask a contractor when they come to you when charlie says hey you know caleb help me out what's the first thing you're asking i just really want to know the scope of the projects exactly get it right right don't try to if you try to sneak it or downplay it it's nothing but hurt yeah exactly exactly if you're doing if you're doing lead abatement i can't write you a janitorial policy right just not the right coverage and at the end of the day to be covered properly with you know you have an insurance policy and to be covered properly you know maybe it's only five ten percent more exactly you know so don't and in my end you don't try to undersell what i'm doing because the last thing you want to be is underinsured exactly so go that extra couple of steps what are the pitfalls that you find that these guys run into but by no fault of their own but just the things that they aren't thinking through you know what the changing evolution of do they do they often forget to you know file the paperwork or is the price of materials go up or do the jobs end up being bigger scope than they've told you to be getting by no fault of their own they just grow like are those all potential pitfalls they they are but what i find the biggest pitfall that that i run to with my contractors is they're just unorganized right so so they're not asking me but they're so there's they're not asking for their certificates of insurance they're not collecting those up front yeah um you know or maybe they they you know haven't provided a certificate of insurance so they're not getting paid you know so that's really the biggest thing that i find i have people that call me and they're in a panic about a job that they did you know they started this job three months ago and now they've got to get paid for it so they really want the certificate of insurance yeah but it's you know it's one of those things with a little planning you could take care of that right away okay good thanks for watching this whole house has got a video for just about every home improvement project so be sure to check out the others and if you like what you see click on the subscribe button to make sure that you get our newest videos right in your feedwhat's the first thing you ask a contractor when they come to you when charlie says hey you know caleb help me out what's the first thing you're asking i just really want to know the scope of the projects exactly get it right right don't try to if you try to sneak it or downplay it it's nothing but hurt yeah exactly exactly if you're doing if you're doing lead abatement i can't write you a janitorial policy right just not the right coverage and at the end of the day to be covered properly with you know you have an insurance policy and to be covered properly you know maybe it's only five ten percent more exactly you know so don't and in my end you don't try to undersell what i'm doing because the last thing you want to be is underinsured exactly so go that extra couple of steps what are the pitfalls that you find that these guys run into but by no fault of their own but just the things that they aren't thinking through you know what the changing evolution of do they do they often forget to you know file the paperwork or is the price of materials go up or do the jobs end up being bigger scope than they've told you to be getting by no fault of their own they just grow like are those all potential pitfalls they they are but what i find the biggest pitfall that that i run to with my contractors is they're just unorganized right so so they're not asking me but they're so there's they're not asking for their certificates of insurance they're not collecting those up front yeah um you know or maybe they they you know haven't provided a certificate of insurance so they're not getting paid you know so that's really the biggest thing that i find i have people that call me and they're in a panic about a job that they did you know they started this job three months ago and now they've got to get paid for it so they really want the certificate of insurance yeah but it's you know it's one of those things with a little planning you could take care of that right away okay good thanks for watching this whole house has got a video for just about every home improvement project so be sure to check out the others and if you like what you see click on the subscribe button to make sure that you get our newest videos right in your feed\n"