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How To Hire A ContractorBy Jim Sulski Summary: We've all heard the contractor horror stories. The unfinished projects and already been cashed checks. Jim gives you tips on how to hire a great contractor. Many homeowners have a stereotype of home improvement contractors as cigar-smoking
cretins who disappear off the face of the Earth once a check is written. This image may be nurtured by that fact that you're paying someone good money to tear apart your home and then put it back together again. Secondly, everyone knows a homeowner who has had a terrible experience with a contractor. Building industry experts, however, say there are more good contractors than bad. And while finding a good contractor may take a little legwork, it will be worth it in the end. That may mean interviewing three or four potential contractors. What follows is an overview on finding the best contractor for your home improvement project. CONTACTING A CONTRACTOR About the best way to find a contractor, said the experts, is via word-of-mouth. For example, ask friends, relatives or neighbors of contractors they've had experience with. If it was a good experience, consider going with that contractor. Another source is membership lists from trade organizations for contractors and other home improvement experts. Through the lists, a homeowner can track down several local contractors. Check with your local chamber of commerce. A final source are the Yellow Pages or local business directories. Be cautious with cold calls. CONTRACTOR QUALIFICATIONS Once you make contact with a contractor, look for several things. If you find a contractor via word-of-mouth, check with the trade associations to see if the contractors are members. Also, ask the contractor is he is a member of the Better Business Bureau's Care Program, a third party arbitration program. Under the Care program, if a customer has a complaint against a contractor, there can be arbitration by a volunteer arbitrator from the bureau. In addition, check with the bureau to see if there have been any complaints filed on the contractor by other homeowners. With large home improvement projects, ask the contractor if his crews will be handling all aspects of the project: Carpentry, drywall, plumbing, electricity, etc. Find out whom the contractor might be hiring and check their qualifications. Another important factor is how long the company has been in business. The longer the company's been in operation, the more likely you'll find someone who is worried about their reputation. Also, make sure your prospective contractor is licensed and insured. Ask him for a certificate of insurance before work is started. Also, ask for the name of the contractor's insurance carrier and agency so you can verify that the contractor has insurance covering workers compensation, property damages and personal liability in case of accidents. Make sure the insurance covers subcontractors. Workers compensation is an insurance that covers the contractor and his workers in case they get hurt on the job at your home. Liability insurance protects the homeowner against any liability on the job - if someone where to pass by and get hurt by one of the workers. Property damage insurance covers any property destroyed or damaged by the contractor. Finally, ask for several local references from the prospective contractor and follow up on them by visiting the homes. PRICING AND SCHEDULING The initial interview is a good time to talk price. Ask for a range rather than an estimate, as price can depend on parts and supplies you select later. Never deal with contractors who offer "special prices" or ask you to be paid for whole job upfront. Scheduling should also be covered in the initial interview. Then, ask a contractor about a payment schedule. What is normal is a small down payment of about 10 percent or 20 percent for materials and earnest money. On a $10,000 job, for example, a contractor should collect $1,000 to $1,500 at the beginning of the job, $5,000 halfway through the job and the balance at the end. On larger job, say $100,000, you could stretch that fee out over five payments. Many contractors will steer clients to reputable financiers. Make sure they offer competitive rates. Finally, after choosing a contractor, and before making any payments, it may
be worthwhile to have a lawyer review any contracts. © by Jim Sulski. All rights reserved. February 3, 2005. NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher. © 2005 by Ilyce R. Glink. Distributed by Real Estate Matters Syndicate. |
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