When hiring contractors to do work on the farm or ranch, Dr. Deke Alkire said local connections are best.
Alkire, a livestock consultant for the Ardmore, Oklahoma-based Samuel R. Noble Foundation, told Ozarks Farm & Neighbor, “You want to look for somebody that is long term in the area, that’s been there for many years and reputable. Ask your neighbors who they’ve used for this kind of job. You can go to the book if you don’t know anybody, but ask them how long they’ve been in business here and what’s the extent of their work, what jobs have they done.”
You should also ask for references in the area, so you can go to see their work first hand. If they only offer out-of-town references, said Alkire, “I might be suspicious about that contractor.”
When you sit down with the contractor, he said, the first and most important question should be whether they’re insured. “If they cause damage that is their fault, you want to make sure they have insurance to cover that liability,” Alkire said. Depending upon the profession, the contractor may be required to be licensed; check with local and state agencies to see if that’s a requirement. Make sure before the project starts you discuss who’s responsible for bringing in state or local inspectors where needed; if they are, check your local codes, because you probably also need some kind of building permit.
It’s also important to establish which party is responsible for procuring materials, supplying machinery and so on; get as much of this in writing as possible. Get an estimated completion date and, if it’s not met, establish whether there will be a discount and if so, for how much. “The more of that you can get in writing,” Alkire said, “both parties will be happy in the end.” He urged caution about paying up front. “Ten percent should be sufficient,” he said. “If it’s a very small business, and maybe they’re just getting started and it’s a big job, they may not have enough capital. But I would still be suspicious if they want more than 10 percent down.” In most cases, payment is due when the job is done and the property owner is satisfied.
Bob Schultheis, natural resource engineering specialist with the University of Missouri Extension office in Marshfield, Mo., said when difficulties do occur, they are almost always the result of poor communication between owner and builder. He said no building should be constructed without a complete set of drawings and written specifications. These may be supplied by either the owner or the contractor, and should be included as a part of the written contract; the contract should also spell out how long the work is under warranty and how the warranties in the construction materials, if they were procured by the contractor, will be transferred to the owner.
Schultheis said both owner and contractor need to agree on procedures to be followed in accomplishing changes. Procedures should include details on initiation of changes, revision in plans and specifications, and contract price revision necessitated by the change. It should also be specified, he said, who will be responsible for storing construction materials in the event of inclement weather.
Finally, Deke Alkire added, “The most important thing is that you trust your gut. If there’s something that you don’t like about a specific contractor, find another.”
