Choosing a contractor when building or remodeling
You have decided that you would rather remodel your existing home, or build a new one rather than try and find your dream home in today’s market. What are some things to keep in mind when selecting a contract to handle your next project?
How long has the contractor been in business? Look for a well established company. Check them out with the consumer protection officials (Better Business Bureau, as well as the state agency that regulates contractors in your state). They can tell you if there are any unresolved complaints on file. Complaint free may be hard to find, but have they resolved those complaints.
Confirm that they are licensed and registered with the state. Most states require electrical and plumbing contractors be licensed, and 36 have some type of licensing and registration requirements on other contractors. Ask to see to see the contractors license and confirm that it is current.
Ask them what types of insurance do they carry. They should have general liabilty, workers compensation (if they have even just 1 employee) and property damage coverage. Ask for copies of insurance certificates and verify they are current.
This all applies to subcontractors that your contractor will be hiring to do your job. Ask to meet them, and verify any required licenses and insurance they maintain. Ask them if they are paid on time by the contractor. Many states allow subcontractors to lien your property for nonpayment by the contractor, whom you may very well have paid for the job.
How many jobs like mine have you done in the past year? May I have references. Both will indicate if the contractor has experience in jobs like yours, and that they are satisfied with the work they do. Check the references, ask was the job done in time, were their problems, unexpected costs, would you recommend the contractor.
Talk about money upfront with your contrator. When do they expect money, when are you comfortable paying for the job. Never pay in full until you are satisfied. Try to limit your down payment, some states even have laws limiting how much a contractor can request. May payments throught the job based on the completion of various stages. Some states also have laws on how much the final bill can vary from the initial estimate. You may wish to look in to loans to finance your project, make sure you do this before you start so that you know you can pay for what you have asked to have done.
