9 Tips to Hiring a Contractor

Avoid Common Problems and Get the Best Quality for Your Dollar

• Do you like this article?
• Tweet

1. Ask friends or family in your area and use internet matchmaking services.

Wouldn’t you rather hire a contractor that you know you can trust? If friends and family have had a good experience hiring a contractor, chances are you will as well. Likewise, internet matchmaking services that pre-screen contractors for licensing and certification ensure you hire a person who will do the job right. You can also ask the Better Business Bureau (BBB) or a contractor’s association in your area, but those are not quite as strong a guarantee of quality work as are friends, family and pre-screening services.

2. Look in the phone book, but only to make sure your contractor is listed in it.

Your home is likely the most valuable thing you own. Do you really want to find some-one to work on your prized possession in the yellow pages? Probably not. One thing the phone book is good for, however, is to make sure your contractor is listed in it. It’s just one more certification of legitimacy.

3. Check references thoroughly.

When hiring a contractor, ask him or her for contact information of several recent cus-tomers who would be willing to share their experience. Pick a few and call them. If possible, view the completed projects. You may even want to view a project or two in pro-gress. This may sound excessive, but when you’re spending thousands of dollars for a home improvement project that should last years, it never hurts to do your homework. More research upfront means fewer regrets later.

Here are some questions to ask a contractor’s previous customers:

• Was the project completed to your satisfaction?
• Was the project completed on time and on budget?
• Were there unexpected additional costs? What were they?
• Did the contractor communicate well during the project?
• Did the crew(s) show up when expected?
• Did the crew(s) do a complete cleanup after the project was completed?
• Would you recommend the contractor? Would you use this contractor again?
• May I view the completed project?

4. Do a basic business checkup.

Ask the contractor how long they’ve been in business. Find out about licensing require-ments in your area. Ask the contractor to see any required licenses and confirm that all documentation is current. You’ll also want to ask to see copy’s the contractor’s personal liability, worker’s compensation, and property damage insurance. If you hire an unin-sured contractor, the liability falls on you. If applicable, find out if the contractor is using any subcontractors. If so, meeting them is just as important as meeting with your con-tractor. Make sure they’ve been paid on time in the past by this contractor, and check their documentation as well. In addition, get a “lien release” or “lien waiver” from every subcontractor and every supplier working on your project. That way, none of them can place a lien on your home if they are not paid by your contractor, potentially forcing you to sell your house to pay your contractor’s bills. Sound bad? It can be. So protect your-self.

5. Ask an annoying amount of questions.

This is not the time to hold back. If you don’t understand some of the specialty jargon the contractor’s using, ask about it. If you don’t understand the process, or if you’re con-fused about why things have to be done a certain way: ask, ask, ask. Don’t stop asking questions until you’re totally clear.

6. Get several bids, and if they’re different, find out why.

The BBB recommends getting at least three bids. And don’t assume you can’t under-stand the reason two bids for the same project are thousands of dollars apart. Allow the contractor to tell you about materials and labor. You might end up going with a higher bid once you understand exactly what you’re paying for. Often the lowest bid isn’t the best, but you’ll only be able to compare them once you know exactly what materials and labor each bid includes and you can compare apples to apples.

7. Put everything in the contract and make sure the contract is in writing.

A written contract: that’s how “contractors” got their name. And it’s how you’ll save your-self from grief if something goes wrong with your project. Even if your state doesn’t re-quire that a contract be in writing, get it in writing. The contract gives the details of the project and should be brief, clear, and easy to understand. Here’s what you should make sure a written contract contains:

• Contractor’s name, address, phone number, and, if required, license number
• Estimated start and finish date
• Payment schedule for contractor, subcontractors, and suppliers
• Contractor’s requirement to get all needed permits
• Any verbal promises should be confirmed in writing in the contract
• List of all materials to be used, including product, brand, color, size, and model
• How change orders will be processed. Change orders are written authoriza-tions to a contractor specifying a change or addition to the work described in the contract. Change orders usually affect the cost and schedule of the project. Some contractors require payment for change orders before they’ll start work.
• Warranties covering labor and materials. The warranty section must include the names and addresses of the contractors, distributors, and manufacturers standing behind the warranties. The warranty period and any limits to the warranty must be clearly stated.
• What aspects of the project the contractor is responsible for--and what the contractor isn’t responsible for. For example, you’ll probably want to make sure that complete cleanup and debris removal is included in the contractor’s price. A “broom clause” states that the contractor will take care of all clean-up, in-cluding spills and stains.
• If you signed the contract in your living room or anywhere other than the con-tractor’s office, you’ll want to include a written statement that says you have the right to cancel the contract within three days for any reason. Make sure you get two copies of the cancellation form—one to keep and one to send to the contracting company. The receipt must have the current date and the name and address of the contractor, and clearly explain your right to cancel.

8. Trust your gut.

Even if everything else checks out, if you don’t feel right about the situation or if you don’t like the contractor’s manner, listen to your instincts. A home improvement project can derail if you and the contractor can’t communicate or get along with each other. Most home improvement projects involve a certain amount of close contact with the contractor and crew, as they work in your yard, on your roof, in your living room or kitchen. You want to make sure you hire a contractor you feel comfortable with.

9. Try to relax.

You’ve done your homework and hired the best contractor you could afford. As work starts—whether it’s for a new air conditioning system, a new roof, or a new kitchen remodel--focusing on the finished product will help you through the construction process!

Disclaimer: The laws regulating home improvement projects and contractor certification vary from state to state and area to area. This publication is intended to offer general guidelines and is not legal advice. If you have comments, suggestions, or questions about this guide or QualitySmith services, please contact QualitySmith at 1-509-522-0222 or e-mail [email protected].

Interested in learning more? Visit our article database here. »