Selecting a Contractor: Tips for Hiring a Contractor
Selecting a Contractor: Tips for Hiring a Contractor–
Obtain Recommendations from Reputable Sources
Get recommendations from people who have used contractors that performed outstanding work. Visually inspect the work a contractor has done in another home.
Verify That the Contractor is Legitimate and Properly Insured
Check to be sure the contractor is licensed, bonded and properly insured. Ask for certificates of insurance for workers compensation and general liability policies.
Contact the Better Business Bureau (BBB)
Call the local BBB or visit www.bbb.org to determine if complaints have been filed.
Avoid Contractors Who Solicit Your Business
A contractor who solicits business via door-to-door or cold calls may be questionable. Also, most contractors won’t quote a price as a limited time offer. Refrain from hiring a contractor whose price will change if you don’t sign a contract immediately.
Get a Free, Written Estimate
Ask the contractor for an estimate in writing that includes any oral agreements that have been made. The estimate should include a line-by-line breakdown of costs, including materials and labor. Most contractors do not charge to provide a written estimate.
Obtain Three Estimates
Get at least three written estimates, as well as names and phone numbers of two former customers of the contractor. Contact these customers, and ask about the work performed.
Do Not Choose a Contractor Based on Price Alone
Avoid automatically choosing the lowest estimate. This contractor’s work may be lacking in quality, or he/she may use inferior materials.
Get a Copy of the Contract
The contract should include a “hold harmless” clause in your favor. This clause specifies that the contractor will indemnify you for your liability to people who are injured or whose property is damaged during the course of the contractor’s work. The contract should explicitly state the work to be performed, start and end dates, payment agreements and warranty information.
Avoid Up-Front Payments
Be wary of a contractor who demands payment for the entire job before work begins. Standard practice is to pay only 33% of the job up front.
Consider Hiring an Attorney
If major work is to be done on your home, or the contract involves a considerable sum of money, ask an attorney to review the contract before you sign.