Twelve questions to ask contractors before you invite them into your home.
1. Are you licensed?
In most states contractors are required to be licensed. Licensing usually involves lengthy training and testing. The problem for the consumer is that they can be misled into thinking the contractor possesses a level of proficiency or knowledge that they may not have. This is where the referral list becomes most crucial.
2. Do you carry general liability insurance?
Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or their employees. The insurance company will pay for the cost of replacing and/or repairing damage that occurs.
3. Do you carry Worker's Compensation Insurance?
Make sure your contractor has Worker's Compensation Insurance. It protects you from liability if a worker is injured while on your property. Be aware that if your contractor doesn't carry Worker's Compensation coverage, you may be liable for any injuries suffered by any of the contractor's employees on your property. Some contractors will tell you that your homeowners insurance will cover them against injury. Do not believe this lie. Most policies specifically exclude coverage for injuries to hired contractors. If the contractor does carry Worker's Compensation Insurance ask them to show you a copy of their policy.
4. Are you a member of the Home Builders Assoc., Better Business Bureau or any other building group?
It's always a good idea to consider hiring a contractor that belongs to at least one if not all of them. Here's why: In most cases these associations attract only conscientious contractors interested in improving the industry and weeding out unprofessional builders and remodelers. Secondly, in order to become a member, these associations investigate a contractor's background and references. Thirdly, all members must sign a written code of ethics and pledge to professionalism. Most members take this pledge very seriously.
5. Will you pull required permits?
Make sure your contractor pulls all the required permits. This is very important. When a contractor pulls the required permits, you know things will be done "to code". Also, many homeowners insurance policies require pulling a permit on any major remodeling to keep your home properly covered. Not all contractors will do this. Many prefer not to pull permits because of the time involved and the "hassle" with the inspectors. Some contractors aren't able to pull the permits because they are unlicensed, or the work is outside of their license. A reputable contractor will pull a permit on every job where a permit is required.
6. Do you guarantee your work?
Your contractor should guarantee their work. A general feeling is that if you can't guarantee it, don't build it, and every job should be backed with a workmanship warranty. Many contractors will not guarantee their work. Some may provide you with a one or two year workmanship warranty. Most faulty workmanship will easily be detected within this one or two year period. If a contractor won't guarantee it, don't buy it.
7. Will you provide me with written references?
Your contractor should gladly provide you with references. You should look for a well-established contractor who can give you several customer references-usually previous customers from the last six months to a year. Make sure the company has a physical presence that gives you a place where you know you can find them and indicates they are financially sound and won't be declaring bankruptcy in the middle of your project.
8. Who will be in charge of the job?
Make sure the contractor or his job supervisor is on the job whenever work is being performed. The former party must be intimately familiar with every aspect of your project. If you won't be home during the construction and must leave the house unlocked or leave a key with the contractor, you must feel comfortable. You can't be worried about what is going on when you are not there.
9. What percentage of your business is repeat of referral business?
When a significant source of a contractor's business is derived from a repeat or referral business, it usually indicates that their clients are pleased with the work they've received.
10. How many projects like mine have you completed in the last year?
Your contractor should be experienced in the type of remodeling project you want done not just "contracting experience". For example, a contractor who mainly does framing and carpentry does not work with siding from week-to-week.
11. How do you handle clean up?
A clean work site is fundamental to a smooth remodeling project. Your contractor should clean up any debris at the end of each day and dispose of any rubbish at the conclusion of the work. Your home should be left "broom swept".
12. How long have you been in business and do you have a permanent business location?
It usually takes 5 years to establish a financially sound business.
