10 Inquiries to Make When Considering a Contractor

Home Improvement

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Choosing a contractor is a lot like choosing a new family member, except that you have the power to make the selection – not your sister. This family dynamic stems from the fact that you’ll likely be spending a lot of time with your contractor, depending on the size of the project and the amount of subcontracting involved. Therefore, it’s important to select someone you can get along with and who will complete the job correctly.

To make an informed choice, there are several essential questions you should ask potential contractors – ideally three candidates, so you can compare their responses – to ensure you find a good match. After all, this is your home, and you want someone reliable who is committed to seeing the project through to the end.

Next, we’ll dive right into what you should know about a contractor before considering them as a temporary addition to your family.

10: What Is Your Business Background?

When you begin the process of hiring a contractor, you’ll want to investigate their business history. This involves asking for – and verifying – proof that they are currently licensed in your area if applicable. Rules vary by state, so if you live in the U.S., check out this list to determine whether your contractor must be licensed or registered to work on your project.

Other items to check include whether they legally pay their employees and carry workers’ compensation, property damage, and liability insurance. Membership with a reputable professional association is also a good sign. Additionally, find out if the contractor has ever filed for bankruptcy or faced legal action. Obtain specifics, such as how long they’ve been in business and under what names. You should also determine how their business is structured and where it is located.

It’s crucial to confirm whether the contractor has recent, relevant experience, so request a list of references from customers who have had projects similar in scope to yours and follow up with them. Don’t hesitate to make phone calls and visits. Ask other customers about their experiences working with the contractor and their satisfaction with the final product. You can obtain other third-party verifications from state licensing bodies, professional associations, state and local courts, insurance providers, suppliers, Better Business Bureaus, and municipal departments.

After investigating and comparing contractors’ histories and qualifications, ask them about their business practices by posing the questions on the following page.

Spotting Untrustworthy Contractors 101

The Better Business Bureau and the Federal Trade Commission offer useful tips for identifying a disreputable contractor [source: BBB Blog]. They:

The contractor you hire could be a door-to-door salesperson who insists on cash payments and uses aggressive tactics to rush you into making a decision. They may also offer to connect you with a “perfect” lender, which often leads to home improvement loan scams. Before hiring a contractor, it’s important to ask about site supervision and subcontractors. You need to find out who will be working on the site and how they’ll be supervised. The contractor’s work crew and subcontractors should be fully covered by liability insurance and workers’ compensation. Plus, you should get records of all transactions to protect yourself from getting burned. Ask about the contractor’s work-site presence and how often they’ll be on-site. When consulting references, ask about the workers’ behavior, and if they cleaned up after themselves and were on time. Also, make sure to get a timeline for the project and include it in the formal written agreement. Check in regularly with the contractor to monitor the project’s progress and determine the best way to stay in contact to communicate any questions or concerns.

Proper communication and documentation are essential to prevent your project from becoming a nightmare. In this article, we’ll discuss additional questions that you should ask a contractor before hiring them.

7: What guarantees can you give me?

Before signing a contract, make sure it includes everything you want and that you understand all the terms and conditions. It’s also wise to keep meticulous records of payments and invoices in case of any disputes. Additionally, ensure that the contractor guarantees completing all necessary homework and obtaining all required approvals during the process. Without this precaution, you may face legal issues down the line.

6: What’s the bottom line?

Request itemized price estimates from each contractor and scrutinize them carefully. Estimates that seem too low may result in a hasty job and a subpar finished product. Conversely, estimates that are significantly higher than others may indicate that other contractors missed a core obstacle in completing the project. Negotiate the payment schedule and factor in any surprise expenses or potential change orders. Remember to pay only for what you’ve received and don’t sign the final check until you’re completely satisfied with the completed project.

5: How does your contractor work?

It’s important to understand your contractor’s routine since they will be working in your home for a few weeks or even months. Knowing their work hours, whether they work on multiple projects, and how they dispose of waste materials is crucial for your peace of mind. You can also set a schedule for them and ask for regular progress reports.

4: Can we have a written contract?

While discussing the project is important, having a written contract is crucial for ensuring that both parties are on the same page. The contract should have specific details such as start and end dates, required permits, and project specifications. It should also include a clause for change orders and a broom clause for cleaning up after the project is completed. A liability release and a list of materials should also be included.

3: What about down payments?

Putting down a deposit for a renovation project can be a sign of good faith, but it’s important to be cautious. You don’t want to give money to someone who may not show up or deliver subpar work. Make sure to do your research and only work with reputable contractors.

The Contractor’s State License Board of Canada suggests a down payment of only 10% or up to $1,000. Some US state laws also limit the amount of down payment a contractor can ask for. It is advised to not pay for work that has not been done yet. A stable company should have enough cash flow to start a project without a significant advance payment. It is important to know who to pay when paying a contractor. Paying a business instead of an individual is recommended as it provides some assurance that the payment will be recorded. Paying in cash is not safe as it is difficult to track and often requested by questionable contractors. Checking for necessary permits and codes required for renovation or construction projects is important as unpermitted work may not be covered by homeowner’s insurance. It is also recommended to check with the insurance company about required permits before filing a claim. For more information, refer to the related articles listed on the page.

This is a list of resources that provide tips and advice on how to hire a contractor. The resources include articles from websites such as BobVila.com, BiggerPockets.com, and DoItYourself.com, as well as a checklist from ServiceMagic.com and a web directory called ContractorsFromHell.com. The resources also include a presentation by Joe Washington at the Atlanta Home Show and an article from the Silicon Valley Association of Realtors warning about the dangers of hiring unlicensed contractors. Additionally, the National Roofing Contractors Association and Rocky Mountain Bathrooms offer their own sets of questions to ask a contractor. Lastly, the Contractors State License Board and San Francisco Chronicle offer general guidance on how to ensure that your contractor measures up.

FAQ

1. What experience do you have in this field?

Asking about a contractor’s experience is an essential question. It will help you to know the number of years they have been in the business. Additionally, find out if they have handled projects similar to yours. An experienced contractor will have a deeper understanding of the industry and is more likely to deliver quality work.

2. What licenses do you have?

A licensed contractor is vital for any project. They have the necessary permits and are legally authorized to operate in your area. Ensure that you ask to see their licenses and ensure that they are valid. Additionally, check if they have worker’s compensation and liability insurance policies.

3. Can you provide references?

Request for references from the contractor. Contact these references and ask about their experience working with the contractor. Find out if they were satisfied with the work done, the quality of work, and if the contractor completed the project on time.

4. What is the estimated cost of the project?

It is essential to get an estimate of the cost of the project before the work begins. A reliable contractor will provide a detailed breakdown of the cost, including labor, materials, and any other expenses. Ensure that you get a written estimate to avoid any misunderstandings in the future.

5. What is the project timeline?

Ask the contractor for a project timeline. It will help you to know when the project will begin and when it is expected to be completed. Additionally, find out if they have any other ongoing projects that may affect the timeline of your project.

6. Who will be in charge of the project?

Find out who will be in charge of the project. It is essential to have a point of contact to ensure that you are always up to date on the project’s progress. Additionally, find out if the contractor will be on-site or if they will be delegating the work to other workers.

7. What is the payment schedule?

Ask the contractor about the payment schedule. How much will you be required to pay upfront, and when will the subsequent payments be due? Ensure that you have the payment schedule in writing and that you understand it before work begins.

8. What is your policy on changes to the project?

It is not uncommon for projects to undergo changes. Find out the contractor’s policy on making changes to the project. Will they charge extra fees for any changes, or how they handle such changes.

9. What guarantees or warranties do you offer?

Find out if the contractor offers any guarantees or warranties for their work. It will give you peace of mind knowing that if anything goes wrong, they will be responsible for fixing it. Ensure that you get this in writing.

10. What is your cleanup policy?

Once the project is completed, there will be a lot of debris and waste. Find out the contractor’s cleanup policy. Will they be responsible for cleaning up the site, or will you be required to do it yourself? Ensure that the cleanup policy is included in the contract.