Selecting a Contractor
 

Selecting a Contractor

When selecting a contractor, find out the answers to the following questions.

• Is the contractor licensed, preferably in the state in which the work is done?

• Is the contractor bonded? Types of Bonds include a Contractor's License Bond, Performance Bond, Payment Bond, and Contract Bond.

• Is the license specific to the work being done (if applicable) or simply a general contractor's license?

• Have you checked the contractor's job references (at least five), including calling customers, their financial institution, and their material suppliers?

• When you checked job references, did you ask the following important questions: 1) Did the contractor keep to the schedule and the contract terms? 2) Were you pleased with the work and the way it was done? 3) Did the contractor listen to you when you had a problem, and seem concerned about resolving it? 4) Did the contractor willingly make any necessary corrections?

• Have you seen pictures of previous work?

• Have you checked the references of subcontractors to be used?

• Have you checked with the BBB? Are the contractor's BBB ratings satisfactory?

• Have you checked with the state licensing commission?

• Have you checked with the Board of Building Regulations and Standards and the Office of the Attorney General?

• How long has the contractor been in business?

• Does the contractor have a physical business address?

• Does the contractor SPECIALIZE in the type of work you want done?

• Does the contractor have insurance: Worker's Compensation, General Liability, Builder's Risk, etc.

• Does the estimate detail exactly what will be done and what it will cost?

• Do you completely understand the plans and details of the work to be done as detailed in the estimate?

• Did the contractor offer you discounts to "sign up now"?  This is a red flag!! Beware!

• Is the work guaranteed?  How long? Are there specific definitions of what is covered, the warranty period, and how the warranty claims are to be handled?

• How much deposit is required up front?  Should be no more than 25% - 33%.

• Is final payment required before all work is completed to your satisfaction?

• Does the contractor have the appropriate permits? Make sure the contractor is responsible for pulling all permits.

• Is the contractor running too many concurrent jobs that might jeopardize timely completion of your project?

• Is the contractor responsive and do you feel comfortable speaking openly with him/her?

• Is the contractor courteous, respectful, and punctual?

Once these questions are answered, make sure of the following:

• Never pay in cash.

• Make sure contractors provide receipts for payments.

• Make sure the contractor has a back up plan if the foreman becomes ill or unavailable for any reason (especially jobs using few employees).

• The contract is written on company letterhead.

• Has your attorney reviewed the contract?

• Is there a termination clause in the contract, for cause and without cause?

• Are contractual payment requirements are spelled out?

This is not a comprehensive list but should help you feel more comfortable in choosing a contractor.