Hire The Right Contractor? AKA How To QUIZ Your Contractor Before Hiring

1. What Licensing and Certification Does Your Company Hold?

How do I check what licensing a contractor holds?  Looking up licenses is generally as easy as finding the government (usually state) website that categorizes license holders.  These government websites hold all the information you need.  Just keep in mind that states differ on their requirements by contractor type.  For instance, some states may require that all construction related contractors hold a license and insurance while another state may only require plumbers, HVAC techs and electricians to hold a license and insurance.  These differences can vary widely by state.  For information about your specific state refer to CONTRACTOR LICENSING BY STATE. 

2. What Workers’ Compensation and Liability Insurance Do You Carry?

Why should you worry about insurance?  Imagine hiring a contractor for your home and they accidentally leave the water running in a sink overnight or puncture a water line inside the wall of your home causing thousands of dollars of damage to your home.  Accidents are the #1 reason that insurance claims are filed.  If your hired hand doesn’t carry insurance and are unwilling to cover the cost, you’ll be stuck flipping the bill.  Additionally contractors that hold a BOND against property damaged while on site offer an even higher level of security against accidents. 

Why does it matter if the contractor has Workers Compensation insurance?  Employees that are injured on your property may seek damages from the home owner/property owner if no other forms of compensation are available.

3. Who Will Obtain Work Permits If Required?

The name on the construction permit is responsible for ensuring that the work completed is compliant with laws and the quality is acceptable.  Contractors acting in good faith will generally acquire permits if applicable for the project at hand.

4. Will You Tell Me About A Similar Project You Completed?

You need to find a contactor who has dealt with a similar or same issue as the one your facing.  If the contractor you are hiring has not completed a similar job recently they may encounter conditions they are unfamiliar with resulting in poor quality of end product, higher end cost, etc.

5. Who Will Complete The Project?

Will the contractor be hiring several different people to help them finish the project, will they complete the work themselves, will different teams of people work on the project everyday?  It’s a good idea to understand who will be present during the length of the job.  Contractors may hire sub-contractors to complete the work for them and these workers may not have the same skill as the main contractors has demonstrated.

6. How Will We Communicate?

If your project will span multiple weeks, its best to meet weekly to obtain progress and quality updates.  Between meetings questions will arise, come up with a game plan for how these questions can quickly be answered that you and the contractor agree on.

7. What Payment Schedule Is Required?

Will the contractor require payment upfront or will all payments be billed with a NET30 payment term?  Find out what the contractor requires to complete and include this in any written documentation.  Does the contractor have sufficient funds to begin and complete the project or is there a risk they cannot meet payroll for their staff if they do not receive a partial payment mid-project? 

8. What Is The Project Budget?

How should additional charges be handled?  For instance if during a renovation the contractors finds water damage inside your home, what is an acceptable way to handle this damage?  Do you have additional funds planned to deal with this type of issue?

9. What About Change Orders?

Will the contractor allow you to change aspects of the work performed mid-job?  For instance if you’ve asked to have a sink installed and later change your mind on the sink type, how should this be handled?  

10. What Warranty Do You Offer?

Does your contractor offer a warranty?  If the warranty covers defects in materials or quality, how is that defect defined?

11. How Will We Resolve Conflicts?

Ensure you have an understanding about how differences of opinion will be handled during the course of the project.

12. What Is The Project Timeline?

A completion date is required for all projects.  Some projects with a longer timeline will require intermediate completion dates.  You need to understand when different phases of the work will be completed. 

13. What Does a Typical Workday Look Like?

What time of day and days of the week will the contractors be working?  Does this work with your schedule?