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Armed with the knowledge of what NSPI is and the benefits to you of
choosing a builder who is an NSPI member, we suggest interviewing
prospective builders, asking them a series of questions to determine
their technical knowledge and ability, their business stability and
experience, their professional reputation and credibility, and their
commitment to customer satisfaction.
Following is a list of 15 questions that will help you make the
best choice.
1.
Where is the pool builder’s place of business?
A pool builder’s mobility is often a key factor in establishing
whether or not he is reputable. Simply put, you must do some
investigative research. For example, if he lives in a van or an RV
he can leave town at the blink of an eye with your money. A builder
with this kind of maximum mobility is good for him, but bad for you!
Common sense dictates that if the pool builder runs his business out
of a motel or apartment, he’s still too mobile and probably has no
credibility to guarantee his product.
Look for a pool builder who has a long-term lease for office space
in a commercial building, or owns his own property. Also, check if
he owns his own home. A pool builder with strong ties to the
community isn’t mobile. He can’t get out of town quickly and doesn’t
intend to. He may also have the financial resources to take care of
things when there is a problem with your pool he did not foresee.
Your main reward for choosing a pool builder who is stable and not
“mobile?” When you call him to find out when he’s going to begin
construction (and after you’ve given him a 15%, 20%, or 25% down
payment) you won’t hear a recording with the seventeen words that
have stopped hearts all over the country: “I’m sorry, that number is
no longer in service and there is no listing for that company.”
2. Does the pool builder have a showroom?
A showroom gives you an open forum to view the products the builder
offers before you sign a contract. This helps to establish his
company’s credibility.
When you visit a pool builder’s place of business or showroom, it
puts the responsibility on him to represent his products and
craftsmanship fairly and honestly. Obviously, maintaining a place of
business is more expensive than carrying around a picture book of
his “projects” in the back of the car, and again will help to reduce
the mobility factor.
Pool builders who demonstrate what they can do in their own place of
business or showroom are up front that they are serious about their
work. That’s not to say that a reputable pool builder can’t
demonstrate his craft or his workmanship in a less formal setting.
For instance, you can ask him to arrange a meeting at a home where
he’s built a pool. This provides you with a reference and gives you
the opportunity to talk directly to a pool owner who has worked with
him.
Remember: a customer-oriented pool builder is more than two guys, a
shovel and a pick-up truck.
3. How many years has the pool builder been in business under the
PRESENT NAME and PRESENT OWNERS?
Bad pool builders don’t like this question, because it’s too easy to
check out. But check it out you must. The rule of thumb is that if a
pool builder has been in business less than three years, forget him.
Why risk your home and your financial investment?
Be safe and only seek out a pool builder who has been in business
for a minimum of three (3) years under the present name and
ownership. The more pools a professional builder has installed
during those years, the better for you – it’s called experience. It
also provides you with ample opportunities for reference and
establishes a track record for you to research!
4. How many projects has the pool builder installed that would
qualify his firm to build your pool?
This is just the first attempt to ferret out the inexperienced,
inept or blatantly dishonest pool builder. The important thing to do
is to get the NAMES, ADDRESSES AND PHONE NUMBERS of the people for
whom they claim to have built pools, and check them out as
references. This extra effort is worth it when it comes to making
your choice. A professional pool builder will be more than willing
to give you all the names you want or need.
5. Has the pool builder, his partners, the owners or officers
gone out of business or been bankrupt?
This is an easy question to answer. Those who have not will respond
with a resounding: “No.” Those who have won’t tell you. You won’t
hear from them again
6. What bank does the pool builder do business with?
As you may know, the banking industry is in almost constant
fluctuation. The important thing here is to find out the bank where
the pool builder currently does business, in addition to how long
and with what other banks he has had accounts since being in
business. However, please take into account that a builder could
have changed banks due to a change in bank ownership, or a change in
bank officers. But, ask the question – it’s another step to ensure
that you are protected.
7. Does the builder have a Dun & Bradstreet rating?
A pool builder’s credibility is more than great products. His good
credit is essential to protecting your investment. You need to do a
reference check to make sure that the builder is in good standing.
8. Are checks made payable to a business account or to a personal
account?
When the company name and the principal’s name are the same, it can
be difficult to discern between bank accounts. However, there are
some telltale signs that will help establish his credibility.
For example, if the pool builder’s name is Johnny Smith, is the
check made out to “Johnny Smith?” Be wary if it is because he could
go to your bank and cash the check and avoid paying any state or
Federal income taxes. This breaks the bylaws of the IRS and
ultimately you might be held accountable should they decide to
perform an audit.
If you write out a check to a company that is incorporated (“Inc.”),
or has the principal’s name as only part of the company name (e.g.,
“Johnny Smith Pool Construction Co.”), then the bank has to deposit
the check in the pool builder’s checking account and it had to go on
his books.
9. What insurance company represents the pool builder for general
or personal liability and what are the limits?
A pool builder may show you a policy, but that doesn’t mean its in
force. You should request a “Certificate of Insurance.” It can only
be sent out by the insurance company and confirms their coverage. A
professional pool builder will provide you with a contact at the
insurance company for you to verify their policy.
The “Certificate of Insurance” sets the parameters of the policy by
detailing the limits of it and giving the policy expirations date.
However, if the pool builder misses the monthly premium payment, it
can expire sooner. The insurance company is supposed to notify you
if it expires.
Unfortunately, this is not always done and some people, who think
they have insurance, really don’t. The key thing to remember is when
a pool builder goes out of business, all of the pools he ever built
or half-built are no longer insured!
10. Are the pool builder’s subcontractors covered by general
liability insurance?
A subcontract is someone who is not an employee of the pool builder.
He could be a plumber or laborer, and electrician or gunite shooter.
A professional pool builder requires that all subcontractor carry
liability insurance and that they keep track of the insurance
certificates. If the certificates are not on file when the pool
builder has his yearly insurance audit, then he is required to pay
all of the insurance premiums for the uninsured subcontractors.
11. Will the pool builder’s insurance company send you a
certificate of insurance?
They won’t send you a certificate unless you request it. And it has
to come directly from the insurance company to you. A professional
pool builder will provide you with the contact at the insurance
company. A bad pool builder who just shows you his copy could have
altered the dates of an expired policy.
12. Does the pool builder belong to any trade or business
organizations? If so, which ones?
If a pool builder belongs to a trade association, this does not
ensure competency or trustworthiness, but at the very least it shows
that the pool builder has some kind of interest in his own industry!
Even if the pool builder isn’t active in the organization, he still
would receive information on a regular basis on activities and
programs the association has for its members.
As indicated in the front of this brochure the primary organization
for the pool builders is the National Spa and Pool Institute.
Although NSPI has incorporated a code of ethics in its membership
criteria, it has no authority to intervene in disputes between a
pool builder and customer.
The only one who can protect your investment is you, and you must
never sign a contract unless you are 100% certain of the decision
that you are making. If you’re not, and sign anyway, you may be out
of a tremendous amount of capital with nothing to show for it.
13. Have the pool builder give you the names of at least three
suppliers with whom he has done business for a minimum of two years.
Another important reference is from the suppliers that the builder
has used before. Suppliers who don’t get paid by a pool builder will
be more than happy to let you know it.
After they tell you, there’s only one more precaution to take: do
business ONLY with someone who pays their bills. If the pool builder
doesn’t pay the suppliers’ bills, then the homeowner gets to pay it
again (they probably paid the pool builder in advance and he used
the money elsewhere) when the suppliers file liens against the
property when the materials were delivered.
14. Will the pool builder furnish lien waivers from vendors and
subcontractors to prove they have been paid?
A lien waiver is a receipt showing that a specific or unspecific
amount has been paid and that the vendor has no lien rights against
the home. A vendor or subcontractor can only file liens against the
residence they deliver to or work on.
Unwary pool buyers can have liens filed against their homes for
sometimes thousands of dollars more than they should have. And when
a bad pool builder goes bankrupt, which he ultimately will, guess
who is held responsible (again)?
But when your pool is complete, you should have compiled lien
waivers from all vendors and subcontractors to prove you don’t have
to pay them again. The point here is that a lien waiver is you only
legal insurance that you don’t have to pay twice. A professional
pool builder will provide you with lien waivers for all the
materials used for you pool – no questions asked.
15. Will the pool builder furnish a list of everyone who has lien
rights on your pool?
YOU should know everyone who is working on your pool. This way,
you’ll know who has lien rights and you should also know who’s
wandering around your house at any given time.
Conclusion
Having a pool built can be an exciting time for you and your family.
We hope this booklet has provided you with useful information to
make the process an enjoyable and easy one. Some of the questions
contained in here are tough and not every pool builder will achieve
all the rigorous standards we’ve outlined for you. That doesn’t
necessarily mean they are bad pool builders or are unscrupulous, in
fact, they may be excellent builders. But it’s going to take some
work on your part to do the research, check the references and probe
the pool builder for all the information you need to make the best
decision for you and your family. |
