Tips to Starting a Project

 

Determine the Overall Scope of the Project

Prioritize your needs and wants, as these will affect what you can really afford to do. Call your local building department regarding property setbacks, easements, as well as your HOA office (if applicable) to stay within the CC&R guidelines. Sketch your ideas on paper; this will help in the design process. Don’t worry about being accurate or being artistic—you won’t be graded on it!

Communication Is Vital

Be open and honest. This is not the time to be silent and accept all that your contractor suggests. Suggestions and comments should be shared and openly discussed. You control the overall outcome of what you are paying for; others can only do what you request. Whomever you select to design/draft your project is just as important as whom you hire to construct it. If for any reason you question the choices you have made, it could be too late!

Responsibility of the Homeowner

It is the responsibility of the homeowner to ascertain the business and ethical reliability of the contractor prior to signing any contracts. Do not rely on phone books, newspapers, or even business cards, as these do not guarantee they are a valid, licensed contractor. Only the R.O.C. can provide this information.

Determine the Project’s Budget

First, think realistically, and second, rethink it all over again! If you are unsure of the cost of your project you might want to call a couple of “LICENSED CONTRACTORS,” however I caution you that they may say they cannot provide any ballpark price as they have nothing to go on. Should they be willing to do this, you must provide information such as the size of the project, interior and exterior details as this is especially important. Ballpark estimates can be very misleading once you start the design process, as things will usually change. If you are financing your improvements through home equity loans or refinancing, complete these procedures prior to meeting with a contractor or even with a designer/draftsman.

*Lending institution may want to see plans first before discussing hard numbers.*

Hiring a Building Designer/Architect Is Crucial

They will confirm vital information regarding your property, setbacks, easements, grade and drainage, and building standards that are allowed as to lot coverage, overall height, etc. This information is also used in the site plan that must be created. It is a necessary step before proceeding into an agreement with a contractor. There are two usual ways of getting plans done. One is by a design/build contractor (via a design/build contract), which can be good and bad. The other is by the design-bid-contract process, but you must understand the difference between the two.

Before You Hire a Contractor

Some Steps to Help Ensure the Work You Contract for is the Work You Get

Intersection of Licensed and Unlicensed

  • Review the contractor's license record here using the Contractor Search.
    If you need help using the Contractor Search, don't hesitate to give us a call.
  • Make certain the contractor's license class allows for the work listed in the contract.
    Please contact the ROC License Department with questions.
  • Request a list of references and check them.
  • Verify the person you are negotiating your project with is an authorized representative of the licensed contractor by calling the contractor's number listed on the ROC license record.
  • Ask for written estimates from at least three (3) contractors.
  • Make sure a detailed list/description of the project, including the price, the responsibility to obtain building permits, and any other relevant terms, are spelled out in the estimate.
  • DETAILS, DETAILS, DETAILS: Only sign a contract agreement WITH A PROPERLY LICENSED CONTRACTING PROFESSIONAL.
    • Review the written estimate and reconcile it with your written contract prior to signing — make sure the costs match.
    • Make sure a detailed list/description of every aspect of the project is included in the contract.
    • Ensure the price, the responsibility of obtaining building permits, and any other relevant terms are spelled out in a written contract.
    • Be specific about the responsibilities of all parties involved and spell these responsibilities out in the contract document:

      Some Examples:

      • Permits — Permits are the responsibility of the property owner. However, many contractors include the cost of obtaining and fees in the contract.
      • HOA notification and approvals — A property owner is responsible for notifying the contractor of CCR restrictions, requirements, and construction policies before the signing of a contract.
      • Temporary power and water.
      • Trash and debris removal.
      • Sanitary facility details.
    • Determine a payment/draw schedule.
    • Make sure you understand the process for ensuring a properly executed change order:
      • How does it increase/decrease your total project cost?
      • How does it affect your project completion timeline?
      • It MUST BE SIGNED by both parties.
    • Make clear, in writing, any other relevant terms or considerations you wish to include in your agreement with the properly licensed contracting professional.
  • Never make a hurried decision. — REMEMBER — IF YOU AND THE CONTRACTOR DO NOT INTERPRET THE WRITTEN DOCUMENTS THE SAME WAY……DISPUTES ARE TO BE EXPECTED.
  • Some payment guidelines to consider:
      • Never pay in cash.
      • Make checks payable to the name of the company/contractor listed in your signed contract.
      • Never make a check payable to individuals or companies not listed in your contract.
      • Do not allow payments to get ahead of the work.

    NOTE: Special order materials, permits, and fees may need to be paid-for in advance.

Licensed, Bonded and Insured?

Just because the ad says it does NOT mean it's true!

An unlicensed entity may be a company or individual. To be a contractor in Arizona, an entity must be licensed. To be licensed, an entity must possess a bond; among other requirements. With the exception of workman's compensation insurance, the ROC does not require an entity to possess insurance to be licensed.

Many complaints about unlicensed entities are received where the home or business owner believed they had contracted with a Licensed, Bonded and Insured contractor, but they had not. The ads that appear in the yellow pages are not regulated by the publisher, and should be considered accurate only about the name of the company or individual and the phone number to call. The only sure way of knowing that your contractor is licensed is to call the Registrar of Contractors to confirm it or by checking, here.

With the technology available today, the local phone number you think you are calling may be being answered by a telemarketer in some other state. Such operations may not even be licensed in Arizona, and you might be paying thousands of dollars down on work that will never be performed or completed.

Nothing in the law prevents a property owner from building or making improvements to structures or appurtenances on his or her own property, and do the work themselves, or with their own employees or with a duly licensed contractor as long as certain conditions are met:

The work is intended for occupancy solely by the owner and is not intended for occupancy by the public, by employees or business visitors.
AND
The structure or appurtenances are not intended for sale or rent for a period of at least one year from the date of completion or issuance of a certificate of occupancy.

This section of the statute is intended to ensure that potential buyers, renters, employees or business visitors to a premise are not put in jeopardy. In such situations where the structures or appurtenances will be utilized by or open to the public, their health, welfare and public safety must be protected, and licensed contractors must be utilized to complete the project.

Also, you must keep in mind that you are still subject to compliance with local permit and building code requirements. Homeowner Associations may also place restrictions on what you may build, and how it can be constructed in accordance with your Covenants, Conditions & Restrictions, (CC&R's).

Why should I hire a licensed contractor?

Due Diligence 360 degreesContracting by unlicensed entities occurs every day and all too often the consumer loses hundreds or even thousands of dollars. What's worse, you, as the property owner, have no recourse through AZ ROC if you hire an unlicensed entity.

Hiring a licensed contracting professional offers many additional protections to the property owner, especially regarding residential property. First, a contractor cannot obtain a license without possessing a minimum amount of experience and must pass a business management test. The applicant is also subjected to a criminal history background check, may be required to take a trade examination, and must not have any unresolved contracting complaints outstanding.

Should you experience problems with a licensed contractor, you as a residential property owner have significant protections not available to persons utilizing an unlicensed entity. Among them, is the ability to file a complaint against the contractor's license within a two-year period from the date of occupancy or date the last work was performed. This is the Agency's jurisdiction period should the workmanship be below standard or in violation of existing codes.

Under certain conditions, you may also be eligible to apply to the Registrar's Residential Contractors' Recovery Fund and depending on the cost of damages receive up to $30,000 to have the work corrected or completed. Each residential contracting license is covered for up to $200,000.00 to a maximum of $30,000.00 per residential property owner, on a pro rata basis upon filing a complete claim. Keeping detailed records of your contract, checks or other forms of payment will speed the processing of your claim, should the need arise. For more detailed information, contact the Residential Contractors' Recovery Fund Monday through Friday during regular business hours at (602) 542-1525 or from elsewhere in the state at 877-MY AZROC (877-692-9762), toll free. These protections are in addition to other remedies available through the courts.

Scams

Warning Notice to Homeowners and Businesses

If you believe you may have been scammed, contact the Registrar of Contractors (Phoenix Office) at (602) 542-1525 and / or your local law enforcement agency.

Also available is a Tips Hotline if you believe an individual or company is contracting or advertising in violation of state statute.

Bogus Home Repairs

On a continuous basis, the Arizona Registrar of Contractors receives information and reports from victims pertaining to traveler activity throughout Arizona. Travelers and other unlicensed entities target and solicit work from residents and perform bogus or inferior construction services at inflated prices.

Typical reports involve asphalt paving and repair of driveways and parking lots, painting, or roofing repair. Business owners and homeowners have lost thousands of dollars in bogus repairs.

Members of the travelers organization target the elderly, promise quality workmanship and possibly a 20 year written guarantee. The final results, however, usually prove to be inferior construction services at increased costs for the consumers.

Although travelers and other similar groups offer to provide a variety of home improvement services, the most notable trades again include painting, roofing and asphalt paving services. The method of operation is the door-to-door solicitation, usually offering low costs and may including utilizing left over materials.

Always hire a properly licensed contracting professional.

Consumer Tips:

  • Avoid door-to-door solicitors offering low cost construction services.
  • Always do your homework before hiring a contractor; telephone the Registrar of Contractors office to ensure the contractor is licensed.
  • Obtain several bids or estimates and ask for references.
  • Obtain a written contract from the contractor that includes all services to be provided, the license number of the contractor, and start up and completion dates of the project.
Contracts: What They Should Include before You Sign, and the First Rule: ASSUME NOTHING!
  • Contract Specifications—Amount of total project, payout schedule, start and finish date, NO ARBITRATION CLAUSES should be on it (if so, this strips away your rights and doesn’t always favor the consumer), all items pertaining to what the contractor and/or what you will do.
  • Scheduling and consequences for not adhering to the start and finish dates without lawful excuse.
  • Change orders—what they mean in potential charges and the effect on scheduling; NEVER AGREE TO ANY CHANGES VERBALLY—HAVE ALL AGREEMENTS WRITTEN AND SIGNED.
  • Mechanics Liens—“Notice to Owner” must be on contract as per the law. Always receive lien waivers from the contractor when making payments. If you have received Notices to Owner from suppliers, subcontractors, etc., ensure that you receive lien waivers from them to avoid paying TWICE for labor and materials! Before filing a lien on your property, the tradesperson who has not been paid must file a preliminary notice. This notice must be sent to the homeowner no more than 20 days after the claimant begins working on a property. If the subcontractor fails to do this, however, they can still file a late notice and go ahead with the lien.
  • To avoid a receiving a lien after a project is finished, require the general contractor to provide you with either a conditional waiver and release or an unconditional waiver and release. In the first case, the contractor gives you a conditional release in exchange for payment in full by personal check. The release is conditional until the check is cashed when it automatically becomes an unconditional release. In exchange for an unconditional waiver, you give the contractor a certified check for the work completed.
  • Right to Cancel Notice—3-day right of rescission from date of signing the contract.
  • Warranty Information—all information or warranted items purchased to be given to the homeowner.
  • You can protect yourself from liens by getting a list from the contractor of all the subcontractors and material suppliers who will work on the project. If they do provide dates when they will start, recognize that this is just an “estimated time schedule,” not a promise.
  • No Completion of Substantial Work clause should be in the contract. Final payment should be made only when you have received a Certificate of Occupancy from your local building department, AND any and all punch-list items have been corrected to your satisfaction. You have the legal right to withhold payment of up to 10% of the total contract costs.

 

 MARICOPA COUNTY FLOODPLAIN MANAGEMENT - 602-506-3011
THINKING ABOUT BUYING PROPERTY FOR A NEW HOME OR ADDING A DETACHED STRUCTURE ON YOUR LOT...
ASSUME NOTHING!

 

The District is responsible for floodplain management and regulation in unincorporated Maricopa County, as well as in the following communities:

Buckeye   Carefree   Cave Creek   Chandler  El Mirage   Gila Bend  Guadalupe  Litchfield Park  Mesa  Queen Creek  Surprise  Tolleson  Wickenburg  Youngtown

The following cities/towns conduct their own floodplain management. Contact the appropriate floodplain agency regarding floodplain questions using the phone numbers listed:

 

City of Avondale - 623-333-1000

Town of Fountain Hills - 480-816-5100

Town of Gilbert - 480-503-6815

City of Glendale - 623-930-3656

City of Goodyear - 623-882-7979

Town of Paradise Valley - 480-348-3693

City of Peoria - 623-772-7000

City of Phoenix - 602-262-4960

City of Scottsdale - 480-312-2356

City of Tempe - 480-350-4311

Many times, the good deal is never a good deal!  In looking for property to build your home or if your existing property has room to add a detached structure like an RV garage, it is very important to call Maricopa County Floodplain to ensure that you can do so. 

When you look at property for sale, that low price you see is a good indicator of hidden issues that the seller may or may not tell you.  It’s called ‘Buyer Beware”!  It is important that you know of any restrictions as to what size you can build and where on the lot it will be located.  Issues like a wash that is going through the lot can limit what you can do. 

Contact us to schedule your consultation. We proudly serve property owners in Arizona as well as the surrounding states.