A.
Before you hire any contractor, be sure to do your
"homework."
1. Planning:
Plan your project with as many details as
possible before you speak to prospective contractors. Consider
giving specific details where possible so that the contractor
knows exactly what you want and he or she can provide you with a
more realistic bid. Also, supplying prospective contractors with
the same specifications will make it easier for you to compare
bids to one another.
2. Where to look for a
contractor:
In addition to traditional
advertising-based sources such as the phonebook, consider looking
to professional or trade organizations as a source for a
contractor. In order to gain membership, professional and trade
organizations generally require a standard level of education or
training. Membership in these types of organizations demonstrates
intent to maintain professionalism and quality. Ask friends and
family for the names of contractors that they have used on their
project. Also, depending on the type of contractor you seek,
construction or job sites are a good source. If you see work that
you like, ask the name of the contractor.
3. Consider your list:
While cost is important as
you select a contractor, do not automatically accept the lowest
bid. Carefully consider the quality and size of materials used in
lower bids. Is the contractor correctly licensed and adequately
insured. An abnormally low or high bid may be the result of a
mistake. Remember the saying: "If it sounds too good to be
true, it probably is."
4. License and Insurance:
Make sure your contractor is
operating under a current business license and that the contractor
carries adequate General Liability and Workers Compensation
insurance policies. Some contractors avoid carrying insurance in
order to reduce their overhead expense.
Anyone who has employees is
required by law to carry Workers Compensation insurance coverage
for their employees. Some contractors avoid this responsibility by
either paying their employees with cash or as a subcontractor.
Be
aware that if a worker is injured on your property and the
contractor does not have insurance, you could be asked to pay for
injuries and rehabilitation through your homeowner’s policy.
Likewise, if your contractor damages your property and does not
have general liability insurance, you or your insurance could end
up paying for the damages.
Ask that the contractor
provide you with Proof of Insurance Coverage certificates. If the
certificates do not come directly from an insurance agent, call
the insurance agent to verify coverage is in force and up to date.
5. Who will be performing
the work:
Will the contractor and his
or her employees be performing the work or will a subcontractor be
involved? If the contractor plans to use a subcontractor verify
that the subcontractor is adequately insured either by his or her
own policy or by the contractor’s policy.
6. Be aware of the payment
schedule:
A short-term project,
lasting a few days, may be billed upon completion. A longer-term
contract may result in scheduled progress payments on a weekly,
biweekly, or monthly basis or based on specific phases. Never pay
a contractor in full before the work is complete.
Be cautious of a contractor
who asks for a large deposit before work commences. Generally a
contractor should only ask for a deposit when (a) a custom or
specialty item is being ordered specifically for your project, (b)
the purchased materials are to be left at your site, or (c) items
ordered for your job will require a restocking fee if you change
your mind and the items are returned.
7. Always request a written
quote.
