How to Pick the Right Contractor
Get Recommendations from People You Know
Personal recommendations are a great place to start. No matter how wonderful someone else's experience has been, however, it's a good idea to do some further digging.
Research Contractors Online
Does the contractor have reviews on Angie's List, Yelp, or Google? Vetting reviews takes time, but can give you a good overall feel for how respected the contractor is.
Tip: Yelp tends to hide reviews that their algorithm has a problem with, even though many are legitimate. To see those hidden reviews, go to the bottom of the page and click the grey link that says "other reviews that are not currently recommended".
Make Sure They're Adequately Covered
Most states have an online database that lets you see if a contractor is licensed, bonded, and/or insured.
Liability insurance covers your home if it's damaged during the course of the project. Workers' Compensation protects you from being held liable if a worker is injured.
Tip: Being licensed and bonded does not mean a contractor is insured.
Be Aware of Local Licensing Requirements
In some states, such as Washington, a person can become a licensed general contractor without any training or experience. (Insert double take here. :)
Get at Least Two Bids
You'll probably get a better perspective on how to choose the best person to work with if you compare two or more contractors.
Ask for a written, itemized estimate, and find out if it's a fixed-price bid or subject to change. If it's a cost-plus bid based on time and materials, is there an upper limit?
Know What the Payment Schedule Will Look Like
Experts recommend not paying more than one-third of the project cost as a deposit, and many suggest you pay less. Do not make the final payment until work is 100% complete, and make sure the receipt says "Paid in full".
Be 100% Clear on the Scope of Work
The final contract should be clear about dates, scope of work, materials, payment installments, and who is responsible for permits (usually it's the contractor).
Tip: Try to anticipate potential unknowns down the road. For example, if the bid is for a roof replacement that includes tearing off one layer of shingles, ask the contractor if they're 100% certain there's only one layer of old shingles to remove, not two.
Get Lien Waivers for Protection
Get a lien waiver from the contractor when you make a payment. This protects you from being sued via a mechanic's lien if the contractor fails to pay subcontractors or suppliers.
Set Expectations for Behavior On-Site
It might seem reasonable to assume that people working in and around your home will not be smoking nearby, using foul language, or playing music that makes small birds drop out of the sky.
However, it's best to take nothing for granted. :)
A little due diligence can go a long way, especially if the project will take weeks or months.
Other Questions to Ask Before Hiring:
- "How will change orders be handled?"
- "Will you be hiring subcontractors, and if so, who pays them?"
- "Have you conducted background checks on your employees?"
- "Will you tidy up before leaving each day?"
- "Do you charge a markup on materials that you buy?"
- "What kind of warranty do you offer, and is it in writing?"
Please just reply to this email or reach out by phone or text any time you'd like a recommendation to a trusted contractor or service provider.
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