10 THINGS TO CONSIDER WHEN HIRING A CONTRACTOR

Nobody loves your house like you do. Nobody. Even if that house is still lines on a page – it will never bear the same emotional connection to anyone other than you and those who will reside under it’s roof.

Whether you are looking for someone to build your dream house or need an extra hand with a tricky remodel project, there are 10 things you need to know before hiring someone to work on your house.

 

1. IT’S OKAY TO ASK FOR HELP

It might be tough for you to hand over the reigns. Maybe you have tackled a variety of projects in the past all on your own and have come out successful. You have pride in your work, no doubt. But it is also okay to realize that maybe you can’t do everything on your own.

Whether it is a time constraint issue or just the fact that you do not have the skills to complete the task at hand, don’t feel ashamed. There are people who are specialized in this work, who are just waiting for your phone call.

 

2. DETERMINE IF YOU NEED A CONTRACTOR

 

Do you need a full blown general contractor, or someone who specializes in one specific area. Are you looking for a ‘jack of all trades’ handyman or a license professional? The size of the project will likely be a deciding factor in this decision.

If a small area of your existing home needs new flooring, for example, hiring a handyman may be perfectly fine. The large and complicated projects – and whole house builds – should be left to the seasoned contractors.

 

3. ASK TRUSTED FRIENDS FOR RECOMMENDATIONS

 

Who better to get referrals from than the people you know and trust? This is simple, and free word of mouth marketing. It is why contractors are looking to do their best work. They know that their reputation will precede them.

You may also get good results from others living in your same community – by posting on an online message board. You might be surprised to learn that the neighbor next door had the same type of work done on their home recently. If you approach the subject carefully, you may be able to find out what they paid their contractor for their similar project, something that may come in handy when considering the bids you are given.

4. PREPARE A LIST OF QUESTIONS

Call a minimum of two different contractors. Ask them the same questions, and write down their responses. Their answers may give you peace or give you pause. Some of the more common questions to ask include:

How long have you been in business? Obviously, a contractor who has been in the business locally for many years will have the experience and references to back up their work. That doesn’t mean you need to count out the new guy though. They may be hungry to build their business and put forth their best effort.

How many projects like mine have you completed in the last year? It won’t hurt to also ask to see examples of their work.

Do you have a license? The requirement varies from state to state, and also between trades. Check this site for details on state specific licensing requirements.

Can I see your certificate of insurance? Contractors should have both liability insurance and workers’ compensation for the specific job they are doing. Seeing the physical certificates is important.

Who are your main suppliers? Contractors will generally work with supply companies time and time again. Consider them additional references. Go ahead and call the suppliers (tile stores, lumberyards, home improvement stores) and find out if the contractor does reliable work or if they have left a path of unhappy customers. If a contractor is unwilling to offer suppliers names, you can consider he or she has something to hide.

What is the size of your crew? How many people will be working on my project? It is unlikely that the contractor themselves will be doing much, if any of the work on your project. They generally will have a crew, whether that is 2 or 20+ employees. Ask to meet with the foreman who would potentially be heading your project – preferably visiting with him or her on a current job site. You will be working closely with this person, and it is important to determine early in the game if your personalities mesh. Visiting on the job will provide an added bonus of allowing you to witness if their work is running smoothly.

Do you bid estimates or offer fixed prices? If possible, ask the contractor to provide you with a breakdown of how much each portion of the project will cost, including the breakdown of how much will be applied toward materials and labor expenses.

Will you be pulling the permits and scheduling inspections? The answer to this question should be yes. Not only should the contractor be aware of which pieces of the project will require permits and inspections and how to get them, he should also be willing to do the leg work.

What is your timeline for completing my project? Determine when they would be able to start the job. If they are booked up and you have a project that is time sensitive, you may need to move on. Ask the contractor to estimate how long the job may take, and also what factors may delay progress (weather? other jobs they are working on, etc).

What is your typical working day schedule? Determining the core hours your contractor and his crew plan to operate will help you know what to expect. Do they start early in the morning? When are the tools packed up for the night? Also ask what type of noise level can be expected and if they want you to be present at any point during the day.

How will you care for my home during your time there? Find out what the protocol is for storing supplies and tools for projects that span multiple days and learn if you can expect a daily site clean-up. Also be sure to ask what measures will be taken to protect the portion of your home that is not included in the project (if a remodel). For example – will they be sealing off the work zone?

The communication between contractor and homeowner is an important one – and it shouldn’t be a one sided conversation. Before the project is handed to them a good contractor should have some questions for you as well!

 

5. DETERMINE A PAYMENT PLAN

The Better Business Bureau advises against paying in full upfront for a job that has yet to be completed – but you may have to make an early payment for supplies. From there you will need to discuss how much will need to be paid at what point during the project. Your chosen contractor should be able to give you a reasonable payment schedule.

 

6. OBTAIN A WRITTEN CONTRACT

Make sure that all the bases are covered and written down. Even if your state does not require a written contract, ask for one. Before signing, make sure it includes all of the following information:

The contractor’s name, address, phone and license number (if required)

Details on the estimated start and completion date

Payment schedule

The contractor’s agreement to obtain necessary permits

Information about how change orders will be handled

A list of materials that will be used – the more detailed the better. Determine who is responsible for choosing the products that will be purchased at a later date, and who is responsible for paying for them (If it is in the budget, know what ‘allowance’ will be given to each item)

A list of what the contractor is or is not responsible for

 

7. KEEP RECORDS OF COMMUNICATION

Change orders are quite common during construction. They can be as small as moving the location of a light switch or as large as eliminating an entire portion of the project. Whenever a homeowner and contractor or builder agree on a change, it needs to be documented. Keep notes of these changes in a file, including the date they were made, who discussed the changes with you, and if the monetary impact was discussed.

 

8. BE PRESENT

Very rare is the situation where the homeowner shakes hands with their contractor and walks away until the construction is finished. It is understandable that you will want to know what is going on with the project, but it is important to note that a construction zone is a dangerous place to be.

You should discuss with your contractor early in the process how often you plan to drop in to check on things. It is always best that when walking on the construction site you do so with the job foreman – who can give you a tour of what has been completed and point out what is to come. For job site safety tips, check out this post from Construction Dive – which highlights 5 ways to keep the homeowner safe when they visit the job site.

 

9. FINISH THE JOB WITH A CHECKLIST

Before that final payment is made, check to make sure these things have been done and/or collected:

The work has been completed to the specifications outlined in the contract. As the homeowner, you should inspect the final product to be sure it meets your satisfaction.

Written warranties on products and services, including who will honor them and the expiration date of each

Written proof that all subcontractors and suppliers have been paid in full

The job site has been cleaned of debris and extra construction material

 

10. BEWARE OF SCAMS

If you have done your research and walked through steps one through nine, chances are number 10 won’t be a problem; But be aware that there are contractor scams out there. You should be wary of any contractor who:

Knocks on your door asking for work and offering you money for the referrals you make

Pressures you to make a decision more quickly than you are ready

Only accepts cash or asks you to pay upfront for the job

Asks you to obtain the building permits

Offers a ‘lifetime warranty’ or long term guarantee

Doesn’t list a telephone number in the local business directory

 

I hope that this list of 10 things to consider when hiring a contractor is helpful as you prepare for your next house project.

 

 

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  • Laurel

    I also like the check off list and partial pay payment plan..it doesn’t matter how well You may know someone or how well friends you “think” you are. Sometimes you may be surprised!ReplyCancel

    • It’s so true! When you enter a business transaction, even with a friend, you need to get it in writing and have a professional agreement in place!ReplyCancel

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