Finding and Hiring A Contractor

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Quick jump menu:

making a choice
buyer beware
interviewing
ask the customers
do your homework
trust your instincts
evaluating the bid
contracts
permits
the unavoidable
the prize

Making a Choice:

Your choice of a contractor is vital to the success of your home improvement project. Select one with care, as you would any other professional, like a doctor or lawyer. You will find that good contractors are everywhere. You just need to sort through all of the information to narrow your list of prospects. Pay close attention to:

Referrals are the best way to find a contractor. Ask your friends, relatives, neighbors and business associates if they know anyone that they would recommend.
Job site signs in your neighborhood offer you the opportunity to see a contractor in action.
Talk to the homeowner about the quality of their work.
Articles in your local newspaper may feature a job under way in your area, or the special expertise of a local contractor.
Advertisements and direct mail solicitations can help you find a contractor, but remember to check references carefully.

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Buyer Beware:

Most contractors are honest professionals. However, as in any buying situation, it's your job to be on the lookout for the unscrupulous few. Here's what the U.S. Department of Housing and Urban Development (HUD) warns are some of the danger signs of fraud*:

Fantastic promises or wild deals
High-pressure sales tactics or threats to push you into signing up on the spot
Attempts to scare you into signing for "urgent" repairs
Offers to consolidate your existing loans through a home improvement contractor
Trial purchases, or guarantees of significant discounts, if you allow your home to be used as a "demo"
Offers of a "bargain" price using "leftover materials" from a contractor who makes unsolicited phone calls or visits to your home
Fixing Up Your Home and How to Finance It, U.S. Department of Housing and Urban Development, 1995.

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Interviewing:

Just as you comparison shop for products, you should ask for bids from at least two or three reputable contractors. (To be fair, have them base their bids on the same specifications and materials.) Allow yourself the time to sit down and discuss the details of your home improvement project with each prospect. Be prepared to ask the questions that will help you determine whether or not this is a reliable professional who will be easy to work with and able to complete the job to your satisfaction. And don't worry, a true professional will have no problem answering your questions and will most likely be pleased that he are dealing with a careful and informed consumer. He wants the project to go as well as you do.

Here are some of the questions you should ask in each interview:

1. What is the full name and address of your company?
This is seemingly minor detail, but it can tell you a lot about the contractor, including how convenient his base of operation is to your home. Ask for a street address if a post office box is given.

2. How long have you been in business?
Of course, a well-established business is ideal. But everybody needs to start sometime. If a company hasn't been in business for more than three years, references will be especially helpful to you in checking it out.

3. Are you a licensed contractor?
Not all cities/states require contractors to be licensed; you'll need to check with your local licensing authority to see if yours does. And don't be fooled -- a contractor may have a business license (for tax purposes), but this has no bearing on his competence as a contractor.

4. Do you have any special training?
Many contractors participate in training programs offered by professional associations, manufacturers, and suppliers, earning special certifications and other credentials. Such efforts are an indication of professionalism as well as skill level.

5. Do you carry insurance?
A contractor should carry comprehensive liability insurance and workers' compensation insurance to protect you in the event of an accident. (If a worker is injured on your property, you might be held liable unless he is covered by workers' comp!) Ask for proof of general liability and workers' comp coverage and then verify it with the insurance carrier.

6. Can you provide me with references from previous jobs?
Ask the contractor if he is working on any jobs that you might be able to visit or if he has photos of completed projects. More importantly, get a list of names and phone numbers of recent customers - and call them! Click here to find out what you should ask your contractor's customers. You'd be surprised how many people don't.

7. Do you offer a warranty on workmanship?
Typically, contractor workmanship warranties are for one year or more, but the length of the warranty doesn't matter so much as the intent and ability of the contractor to stand behind his work. (You may also want to ask whether or not the contractor will provide you with manufacturers' warranties for the materials he'll be using).

8. How have you handled previous customer complaints?
The point of this question is not so much to focus on the complaint, but rather, how it was handled by the contractor. Ask him to talk to you honestly about a job that involved a complaint. Also, find out if he has ever lost a job-related court case or had his contractor's license suspended, and why. Again, be sure to contact the Better Business Bureau to find out if any complaints have been filed against him.

Click here for a printable copy of only interview questions.

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Ask the customers:

According to the National Association of the Remodeling Industry, these are the questions that you need to ask your contractor's references*:

Were you able to communicate with the contractor?
Were you pleased with the quality of his work?
Were you satisfied with his business practices?
Did the contractor begin work on time?
Was the job completed on schedule?
Did the contractor fulfill all terms of your agreement?
Did the contractor stay in touch throughout the project?
Were the final details completed in a timely fashion?
Would you use this contractor again without hesitation?

*The Master Plan for Professional Home Remodeling. National Association of the Remodeling Industry, 1995.

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Do your homework:

The Council of Better Business Bureaus offers these suggestions for checking out prospective contractors*:

Find out if the contractor is a member of a professional association -- such as the National Association of the Remodeling Industry (NARI) or the National Association for Home Builders (NAHB) -- that has standards or a code of ethics for members
Call your local Better Business Bureau or consumer affairs office to find out how long the contractor has been in business and whether or not any complaints have been filed against him
Check with your local housing authority (state, county or city) to see if the contractor is required to meet certain licensing or bonding criteria in your area and then make sure that he is in compliance
Request a copy of the contractor's certificate of insurance for workers' compensation, property damage and personal liability in case of accidents, and call the carrier to verify the information

*Tips On...Home Improvement, The Council of Better Business Bureaus, Inc. 1997.

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Trust your instincts:

Finally, don't underestimate the power of personality. As you conduct your interviews, try to get a feel for how you might get along with each of your contractors. And trust your instincts! Keep in mind that, for the duration of your project, this could be the person that you will greet first thing in the morning and as you arrive home from work each night. He and his crew will be in your "space" for a large part of the day. The two of you must be able to communicate successfully with one another and deal appropriately with problems as the project goes along. It's worth your effort to get to know him!

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Evaluating the bid:

As you evaluate bids from your prospective contractors, you might want to consider the findings of a Consumer Reports study on home improvements. In a survey of nearly 12,000 homeowners that obtained multiple estimates, the 40% that accepted the lowest bid were less satisfied overall with their projects than those who were willing to pay more for the job*. Make sure that your final choice of a contractor is based on the "sum of all parts" -- including professionalism, an understanding of your vision for the project, and a compatible personality -- instead of on a single factor such as price.
*"Remodeling Without the Hassle," Consumer Reports, 1997.

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Contracts:

Once you have chosen a contractor and agreed upon the final plans for your home improvement project, it is critical that you clarify and confirm all of the particulars with a written contract. The primary purpose of this is to provide protection for both you and your contractor in case of a dispute. Additionally, a contract will help to minimize misunderstandings and avoid any confusion about the details of the job. Here's what should be specified*:

The contractor's name, address and telephone number (and, if applicable, professional license number)
A thorough description of the work to be completed
A list of any specifications on all materials that will be used, including brand name and product, quantity, size, and color
The agreed-upon starting and completing dates
The total cost of the job, with a breakdown of labor and material costs
A payment schedule (and cancellation penalty if applicable)
Any warranties covering materials and workmanship (one year is the standard industry minimum)
Acknowledgment that you have carefully studied and approved the plans
Details of how the contractor will protect your personal property and clean up during or after completion of the job
A policy for any changes to the plan during the course of the project
Terms outlining the application for and compliance with any building permits required for the job

A release-of-lien clause to protect yourself in the event your contractor does not pay his subs or suppliers (otherwise, you could be held liable)
The finished contract should be carefully reviewed by both you and your contractor to be certain that you fully understand all of its terms and conditions before signing. Make sure that it is complete. Do not sign the contract if you notice that a specific clause or item is missing or if you disagree with any of the terms.

And don't panic. If you decide for any reason that you don't want to go through with the job, you have the right to cancel the contract within three business days of signing it (preferably via telegram or certified mail). Your contractor will let you know about your cancellation rights and provide you with any forms you might need.

*Signing the Dotted Line..., National Association of the Remodeling Industry, 1997. Tips On ...Home Improvements, The Council of Better Business Bureaus, Inc., 1997.

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Permits:

It's best to let your contractor apply for the appropriate building permits for your home improvement project in his name*. That way, if his work does not pass inspection, you won't be held financially responsible for correcting it. But you should be aware of what permits are required.

The Council of Better Business Bureaus suggests that you check with your local department of licensing and permits to find out about this before the job starts.

Once the job in under way, it is the contractor's responsibility to call for inspections that will verify whether or not you are in compliance with local codes and regulations.

*Tips On...Home Improvements, The Council of Better Business Bureaus, Inc. 1997.

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The unavoidable:

As with any construction project, the remodeling your contractor performs might disrupt your daily routine for a few days or weeks. Here are some of the things you can expect as the contractor works on your project:

Dust and dirt
Loud noises from construction equipment
Out-of-commission plumbing or electricity
A driveway blocked with trucks and materials
Noxious odors or paint fumes

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The prize:

Let's assume you've done your homework and made your choices. You've got your plan, your contractor, and a signed contract. Your job is over...right? Not quite.

You -- and your family -- will need to be prepared for any disruptions that might occur as a result of your home improvement project. Talk to your contractor to see if he has any suggestions about what you can do ahead of time to be as ready as possible for the day he and his crew arrive.

Depending on the scope of the project, You'll need to allow yourself time to move your valuables out of harm's way and reorganize any items that won't be accessible during the course of the project.

If your contractor will not be your day-to-day contact, make sure that he identifies and introduces you to the person in charge of the project. Ask him what you can expect regarding his work habits and those of his crew or subcontractors, such as daily start and finish times. Find out his policy on radios, foul language, and daily clean-up duties. And check to see if you'll need to arrange for parking for his trucks. Any detail that you can anticipate and plan for ahead of time will help to make you feel more relaxed as the job progresses.

Temporary inconveniences are a given with any home improvement project. Just remember to keep your sense of humor and your eye on the prize. As each day passes, you're one step closer to the beautiful finished job.

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