How To Hire a Contractor

When planning for projects, selecting the right contractor for the project is an important first step in the planning process. You are going to want to make sure you examine the quality of their work in advance, detail in writing what work you want carried out and agree upon the extent of the project and inquire whether the contractor is appropriately licensed and insured in case something goes south.

How To Hire a Contractor

The following checklist compiles the top 10 tips to think about when selecting a contractor:

1. Get Multiple Estimates

Speak with several contractors and obtain written estimates from at least three of them. Make sure you compare apples to apples when getting multiple estimates. Examine building materials, work practices, deadlines and other aspects that may differ by contractor. Be wary of estimates that are too high or too low.

2. Hire Local, Licensed Contractors When You Can

Local contractors are easier to get in contact with if problems arise with the work in the future, and they are more probable to be familiar with local building codes. Ask the contractor for their local, tangible address. Be cautious of anyone that goes door-to-door or declines to leave an agreement overnight.

3. Check Their Past Work

How has their work come out in the past? Are they going to specialize in the type of work you want carried out? Verify references concerning the quality of their work, their proficiency and how they handle customer service. Ask about their professional standing and years in business with the BBB. A contractor that has more than five years of experience is favorable.

4. Take Your Time Making a Sound Decision

Get several bids prior to deciding. Don’t be pushed to make an immediate decision, specifically in regards when signing a contract. Be wary when asked to pay a large up-front deposit. Be sure to read details on all estimates and contracts. When you are having emergency repairs carried out and don’t have time to comprehensively research a contractor, ask neighbors, relatives or friends to verify if they have had an enjoyable experience concerning an emergency services contractor.

5. Verify Their Insurance and Bonding

Be sure the contractor is appropriately insured and bonded. Request the contractor for a certificate of insurance (COI), which is going to provide the name of the insurance company, policy number(s) and policy restriction the contractor carries. You can get a hold of the insurance company directly to ensure the coverage and be sure the policy is still effectual. Do not do business with a contractor that does not carry the proper insurance coverage. If the contractor is uninsured, you may be responsible for accidents that happen on your property.

6. Get Everything in Writing

Secure a thorough contract prior to work beginning. Acquire everything in writing and be sure the contract is clear and skillfully written. Think about having a lawyer examine the contract proposal for your safeguarding prior to you signing it if the project involves significant costs. The contract should comprise:

• A comprehensive description of the work to be carried out and the cost of each item.
• A payment schedule – for instance: 1/2 down and 1/3 when work is partly completed, and the balance due when the project is completed.
• The estimated beginning date and completion date on bigger projects.
• Any relevant guarantees, which need to be written into your contract that clearly states whatever is guaranteed, the person(s) answerable for the guarantee, and how long the guarantee is legitimate.
• Signatures from each party. You never sign a contract that has blank sections.

Alterations to the contract should be recognized by each party in writing. Request the contractor for verification that they have acquired all relevant building permits. When you choose to cancel a signed contract, you should adhere to the contract’s cancellation clause. A written cancellation notice needs to be sent by registered mail to guarantee you have evidence of the cancellation.

7. Know Your Right to Cancel

Federal law might require a “cooling off” period, in which you could cancel the contract without facing penalty. Verify with the FTC and the laws of your state to know your rights. Be sure to adhere to relevant rules throughout the cooling off period. When you do cancel, think about sending the cancellation notice by registered mail to guarantee you have evidence of the cancellation.

8. Don’t Pay Upfront

Don’t pay for the whole project prior to it being completed. Be sure you make your checks out to a company, not a person, and DO NOT pay with cash. For bigger projects, it is common practice of paying 1/3 of the estimated costs as an upfront payment. That way, you can keep your cashed checks as receipt.

9. Anticipate Delays

Delays occur and might not be your contractor’s fault. In spite of the timeline detailed in your contract, circumstances like weather might prevent the work from staying on schedule. Be rational and prepare to modify your plans accordingly.

10. Retain A Job File

Retain your contract and all the relevant documents in one file folder. It should also include any change documents, plans and details, invoices and bills, canceled checks, and insurance certificates and any notes, mail or correspondence with your contractor.