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How to Choose a Home Improvement Contractor
Yes
Just about every home owner has had some experience with hiring contractors for repairs or remodeling—and almost everyone has a tale to tell of something that went wrong. Many of those complaints can be forestalled by carefully choosing the right contractor for a big job or a competent and reliable specialist or handyman for a smaller one. But how do you find a good contractor?
First of all, make sure you have a clear idea of what work you want done. Outline the job, and, if you want specific materials used or certain fixtures or appliances installed, describe those. If you're working with an architect on a larger project, have copies of the plans.
Generally avoid businesses that solicit door-to-door for home improvement jobs. Although some of these businesses are reputable, this type of approach is standard practice for home remodeling scams, particularly those preying on elderly people.
Check with neighbors, friends, and relatives who have recently undertaken or completed a home improvement project similar to yours. Be sure to ask if they were satisfied with the work, the price, and the time frame for completion of the work.
Be careful with these referrals, though. Some people have had bad experiences with a worker who was recommended because a relative felt sorry for the person, or the worker was out of work in an unrelated craft and the friend thought he could help out.
Ask local suppliers of home improvement materials, appliances, or fixtures if they have recommendations for contractors or workers. Often these businesses keep referral lists of workers in various specialty areas.
If you have had related work done by a reliable business (for instance, plastering or drywalling), and you need interior painting done, ask the firm you used to refer you to painters they recommend. Craftsmen in a related area who take pride in their work usually won't steer you to a lemon.
Some chapters of national organizations and associations for particular craft specialties may have available listings of their members in specialty areas. While these may not be referrals per se, trade groups have a strong self-interest in ferreting out the "bad apples."
Once you have the names of several possibilities, call your local Better Business Bureau to find out if there are any complaints against the firms. Then check to be sure the contractors and craftsmen you're considering are licensed in your state by calling the licensing board or commission, usually located in the state capital. (Note that over 30 states require licenses.) While licensing is no assurance of competence or reliability, it does establish a base level, and dealing with a licensed contractor may give you greater clout if problems occur.
For smaller jobs and handyman projects, many people have had positive experiences with competent unlicensed craftsmen referred by friends, neighbors, and acquaintances. Unlicensed, however, may mean uninsured, which exposes you to greater risk.
The next step is to start calling the possible contractors. Consider this call a first cut of prospects, for you'll find that some won't be available when you need them; for others, the job may be too big or too small; and still others you'll strike off your list after the telephone interview. This is the time to discuss the following:
- Does the contractor have experience doing the type of work you need?
- Is he or she licensed, bonded, and covered by worker's compensation and liability insurance?
- Does your time frame for the work fit his or her schedule?
- Would the contractor provide you with references from homeowners who have had similar work done?
- How long has the contractor been in business?
If your home improvement project is a big one, set up appointments with at least three contractors on your short list to discuss the job you've outlined and to ask for itemized written bids that include the labor, the cost of materials, and the expected starting and completion dates.
The in-person meetings to discuss the job are important both to be sure there is mutual understanding about what needs to be done and to make sure you will feel comfortable dealing with a particular person. These meetings also give you a chance to ask the prospects about their workers, subcontractors, and suppliers.
Take time going over the estimates, and, if there's a wide range between the highest and the lowest bid, check out why; for instance, are the specifications for materials different or is something missing from the low-ball estimate? Resolve any questions you have about the estimates before you make a decision.
Ask your top candidate for photocopies of his or her license and proof of insurance coverage. This is the time to ask for financial references, as well as references of satisfied customers, suppliers, and subcontractors. Be sure to check these references thoroughly. Any signs that the contractor is behind on bills should send up a red flag about possible future legal problems: If you pay a contractor but the suppliers and subcontractors aren't paid, they could put a lien on your house. Consumers can also check public records in the local courthouse to see if the business or owner has liens against him.
A resource often overlooked by consumers in checking businesses is Dun & Bradstreet Information Services, which researches and evaluates companies from a financial perspective. For a reasonable fee a consumer can get a report on a company just as businesses regularly do.
Your work doesn't stop here. You'll still need to approve a contract and a payment schedule, oversee the work to be sure it's done according to contract, and negotiate with the contractor if problems occur.
If you have selected your contractor well, it's less likely that you'll have problems further down the line that require arbitration or legal recourse.
This article was submitted by Consumer Alert, a non-profit organization that is dedicated to informing the public about the consumer benefits of competitive enterprise and providing information to help consumers make everyday decisions. Submission of this article does not imply an endorsement or recommendation of the Financial Resource Center site.
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