A short Guide to Hiring a Contractor

So you want to hire a contractor for your newest pet project of renovation, or remodel.  Do you know basic tips to get the best service our of your contractor?  Are you intimidated by the thought of hiring someone and getting ripped off?  There are many websites that give basic tips on how to hire a contractor.  I have tried to compile a basic list that should protect you.  I have also included a list of my source material in links that has MUCH more information than I have provided.

PROJECT PLANNING – Determine what you want done prior to talking to a contractor.

• Make a detailed list of the project including materials, preliminary sketches.  Most contractors will provide advice, and suggestions.  This is a two way street.  Being too inflexible could drive up prices.
• Determine your project timeline.  Set start and completion dates when you want them completed.  This is very important prior to talking to the contractor.  Some contractors may not be able to meet your schedule.
• Have a general idea of how much you want to spend.  If you need it go ahead and get a loan or dig up your treasure chest from your backyard.  Do not use lenders recommended by contractors.

FIND A CONTRACTOR

• Talk with friends, coworkers, or neighbors who have had similar work done and were satisfied with their contractors level of work and price.
• Check the yellow pages, or business directory for contractors in your area.
• Only work with contractors who routinely perform the work you require.  If your project is residential, make sure you don’t get a commercial contractor as they may not be aware of the building codes.  Building codes differ between residential and commercial work.

INTERVIEW – Intially perform phone to get a list of contractors you want to interview face to face.

• Get estimates.  Most contractors will perform free estimates and include project details with sketches, cost estimates, and details of how long the work should take.
• Get the contractor’s business license number.  Look up his license or business name in the Better Business Bureau (www.bbb.org).  Check for complaints against the contractor.
• Get a list of previous clients.  Call the previous clients to find out how satisfied they were with the contractors services.
• Ask how many projects the contractor has underway at the moment.  Contractors with a large number of projects may not be able to complete your project on time or with the quality you would prefer.  They may end up taking short-cuts to complete the project on time.
• Ask if their subcontractors are regulars or vary from job to job.  Most contractors have subs working with them.  Typically if the contractor does not use the same subs all the time, there may be some questions of the quality of his work.

SELECTING CONTRACTOR

• After the interview select a contractor you think you will feel comfortable working with.  If the contractor gives you the creeps don’t use them.
• Don’t let price pick the contractor for you.  A low price may mean poor service, low quality materials, etc.
• Finalize the list of contractors down to a small few of which you have estimates, references etc.
• Make the call to spend money….

MAKE A CONTRACT – Making a contract protects you and the contractor.  In some cases the contractor will provide the contract.

• Define the scope of work using sketches, lists of materials, location of work etc.  Be VERY specific listing even the contractor’s name or business, the address of where the work will be completed and your name.
• Define the start and completion dates.  This will ensure the contractor has incentive to complete the work on time.    This protects you from very busy contractors who over committ and may disappear and decide not to work on your project on your schedule.
•  Define payment and schedule.  NEVER pay upfront.  This Old House (http://www.thisoldhouse.com/toh/knowhow/managinghome/article/1,16417,199776,00.html) suggests putting 10% down with 3 payments of 25% and a final 15% down upon work completion.  This is negotiable, and typically reputable contractors will have predefined payment schedules or plans.
• Other suggestions are responsibilities (i.e. building permits requests etc).  Typically reputable contractors will get the building permits for you.

DURING AND AFTER THE JOB

• Check often on the status.  I had a friend who daily checked on his house being built and found that the hall in the upstairs wasn't square.  He brought it to the contractor's attention and it was corrected quickly.
• Ask questions if you think something isn't going the way you thought it should or per the contract.
• If the contractor does not complete work as promised, your written contract will protect you, and potentially could be used for litigation (check local laws).  The contract also provides leverage if the contractor is not performing the work on the agreed schedule, i.e. frequently disappears and doesn't show up often to work on your project.
• If something does not work like it should do NOT give the final payment until it is corrected by the contractor.

This list should help give a general idea.  Hopefully, your project will go well.  I also have a short list of contractor no-no’s.

CONTRACTOR NO-NO’s

• Never use a contractor who solicits door to door
• Never use contractor’s suggested lending/loan providers.
• Never use a contractor who uses pressure tactics (whether on details, costs, or timelines)
• Never use a contractor who demands payment upfront or will not sign a contract with you.
• Never use a contractor who will not provide a list of clients/references.

Here is a short list of websites where I found some of my information above.  Some of my information is from personal experience, TV home improvement shows, friends etc.

http://www.ftc.gov/bcp/conline/pubs/services/homeimpv.shtm

http://www.thisoldhouse.com/toh/knowhow/managinghome/article/1,16417,199776,00.html

http://www.homeandgardenadvice.com/diy/Hiring_a_Contractor/

http://www.cmhc-schl.gc.ca/en/co/renoho/refash/refash_009.cfm

http://health.yahoo.com/topic/caregiving/healthyhabits/article/agingridge/Caretalk_home_renovations