Here’s how to make sure you hire the right contractor for your home improvement project.
Get referrals. Check in with family, friends, and neighbors. Request from the National Association of the Remodeling Industry a list of members in your area. Talk with a building inspector about which home renovation contractors routinely work to code. Ask a nearby lumberyard which contractors buy quality materials and pay on time.
Interview all referrals over the phone. Make a quick call to each and ask the following:
- Do they take your size projects?
- How many other projects will they be doing at the same time as yours?
- How long have they worked with the subcontractors they use?
- Can they provide a list of previous clients?
- Can they give you financial references from suppliers or banks?
Meet the candidates face-to-face. Choose three or four contractors to meet with and discuss the job. Make sure they answer your questions to your satisfaction. It’s important that you communicate well with each other. Focus on their expertise.
Do background checks. Call former clients to find out how the job went and if you could see the final product. If you can, visit a current job site to see how the contractor works. Is the site organized and safe? Are the workers polite and respectful of the homeowner’s property? Check the state consumer protection agency and local Better Business Bureau for any history of disputes with clients or subcontractors.
Get bids from three candidates. Tell them what you want out of the project and what you’re planning to spend. Have them all specify the cost of materials, labor, and other expenses, such as permits. Materials typically make up 40% of the total.
Make your decision, but don’t base it only on price. In fact, experts advise rejecting the low bid. It could indicate the contractor is cutting corners or is desperate for work. Base your decision on expertise and how comfortable you are communicating with the contractor.
Set up a payment schedule. Payment schedules can vary from 10% to 50% up front, with the rest evenly spaced during the duration of the project, and the final payment made when every item is completed to your satisfaction. Have this added to the contract.
Review the contract. It should include: start date and expected completion date; a detailed description of the job; materials and products to be used; a requirement that the contractor get lien releases from all subcontractors and suppliers (to protect you if the contractor doesn’t pay them); proof of liability insurance and worker’s compensation; and the payment schedule. Make sure you understand everything before signing the contract.
