Real Estate Jungle

Hiring a Contractor

Interview each contractor you’re considering. Here are some questions to ask.

• How
  long have you been in business? Look for a well-established company and
  check it out with consumer protection officials. They can tell you if
  there are unresolved consumer complaints on file. One caveat: No record
  of complaints against a particular contractor doesn’t necessarily mean
  no previous consumer problems. It may be that problems exist, but have
  not yet been reported, or that the contractor is doing business under
  several different names.
• Are
  you licensed and registered with the state? While most states license
  electrical and plumbing contractors, only 36 states have some type of
  licensing and registration statutes affecting contractors, remodelers,
  and/or specialty contractors. The licensing can range from simple
  registration to a detailed qualification process. Also, the licensing
  requirements in one locality may be different from the requirements in
  the rest of the state. Check with your local building department or
  consumer protection agency to find out about licensing requirements in
  your area. If your state has licensing laws, ask to see the
  contractor’s license. Make sure it’s current.
• How
  many projects like mine have you completed in the last year? Ask for a
  list. This will help you determine how familiar the contractor is with
  your type of project.
• Will my
  project require a permit? Most states and localities require permits
  for building projects, even for simple jobs like decks. A competent
  contractor will get all the necessary permits before starting work on
  your project. Be suspicious if the contractor asks you to get the
  permit(s). It could mean that the contractor is not licensed or
  registered, as required by your state or locality.
• May
  I have a list of references? The contractor should be able to give you
  the names, addresses, and phone numbers of at least three clients who
  have projects similar to yours. Ask each how long ago the project was
  completed and if you can see it. Also, tell the contractor that you’d
  like to visit jobs in progress.
• Will
  you be using subcontractors on this project? If yes, ask to meet them,
  and make sure they have current insurance coverage and licenses, if
  required. Also ask them if they were paid on time by this contractor. A
  “mechanic’s lien” could be placed on your home if your contractor fails
  to pay the subcontractors and suppliers on your project. That means the
  subcontractors and suppliers could go to court to force you to sell
  your home to satisfy their unpaid bills from your project. Protect
  yourself by asking the contractor, and every subcontractor and
  supplier, for a lien release or lien waiver.
• What
  types of insurance do you carry? Contractors should have personal
  liability, worker’s compensation, and property damage coverage. Ask for
  copies of insurance certificates, and make sure they’re current. Avoid
  doing business with contractors who don’t carry the appropriate
  insurance. Otherwise, you’ll be held liable for any injuries and
  damages that occur during the project.

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