How to Locate and Hire a Good Contractor

We have all heard horror stories and watched newscasts about innocent people being ripped off by a contractor. Unfortunately, this happens far too often in the construction industry. Here are some guidelines to follow when hiring a contractor for your home.

Step 1. How to Find a Good Contractor

When searching, word of mouth is by far and away the best method. Speak with your friends, neighbors, coworkers and relatives. One of them probably has the guy for you. If searching the internet, newspaper, or telephone book is appealing to you, then you need to beware. Anyone can pay for an ad, good guys or bad guys. Whether you find a contractor from word of mouth or from an advertisement, you will need to do some detective work.

Step 2. Check Him Out

Most communities now have a building dept. This is your first step in determining if you have found the right contractor for your project. You need to call the building dept. and verify that he is properly licensed for your project. You should ask how many permits he has pulled in the last year and if he has passed all of his inspections. Next, go ahead and check with your local Better Business Bureau. Even if he is not a paid member, the BBB records consumer complaints for up to three years. Use Google or similar search engine. Often times you will find a review or complaint listed from a burned consumer. Finally, get some free insurance. A good contractor will carry liability insurance and you can be listed as a rider on that policy. Have his insurance company fax you a certificate with your name on it. Workers Comp insurance is a must have as well. If an uncovered worker is injured on your project, you could be held liable in some instances. If he passes this gauntlet, start calling his references. They will sing his praises, because he picked them for you to call, but you can get some good insight on things such as timeliness, cleanliness, etc. Next, have him put together a contract for your project.

Step 3. Read Your Contract

It is imperative that your contractor provide you with a written contract. It is your duty to make sure that it is very detailed about the specific work that is to be completed. You want to get what you are paying for and the last thing you want is to pay extra for something you thought was included in the original contract. Ofcourse read all of his fine print just as you would with any other contract you would sign.

Step 4. Pay On Your Terms

Your contractor will list his payment terms in your contract. This does not mean you have to agree with them. A good rule of thumb is to allow for up to 30% down. This ofcourse, is only if he has passed all the guidelines listed above. A good method is to release the remaining funds at a predermined points as work progresses and as outlined in the contract. Follow these guidelines and you are on your way to improving your most prized possesion.