Don't Make These 3 Mistakes When Hiring A Contractor

Many homeowners make several mistakes when selecting and hiring a remodeling contractor to work on their homes. Some are minor, but some can prove very stressful and costly. Below, I've listed the mistakes made by homeowners which can result in the most damaging results.

1. Hiring an Unlicensed Contractor-

With liability insurance and contractors bond costs rising, many "contractors" are opting to go without these legal and important requisites. Due to the reduction in the number of contractors and increased claims, liability insurance claims have skyrocketed! The same goes for bonds. Many formerly legitimate contractors have either chosen to drop their former insurance policies, or just can't afford them any longer.

If you hire an uninsured, unlicensed contractor and something goes awry during your project, you could be left liable for all the damage done. You'll have no recourse against the contractor. Always, always, always check the contractors' license and bond. Make sure he's legal and currently insured and bonded. You can easily check a contractors status by calling your State's Contractor's Board or going online. They have a very helpful and informative website.

2. Not Checking References

Even before you say "yes" to a contractor, you should ask for and check references of past customers the contractor has performed work for. Ask for at least five to six names with contact information. Then diligently make those calls and ask questions like:

Did the contractor stay on budget?
Was the project completed on time or close to it?
How would you rate the cleanliness of the contractor?
Was the contractor prompt in showing up for work?
How accessible was the contractor during and after the project?
On a scale of 1-10, how would you rate the contractor's overall performance?
Do you recommend the contractor?

The best approach is to narrow down your selection to 2 or 3 contractors, then check the CCB and references before hiring.

3. Hiring the Lowest Bidder

I have to be careful here, because sometimes the best contractor IS the lowest bidder. Some contractors have lower overhead than others, so they can complete a project for less than the higher overhead contractors. What you need to watch out for is contractors who produce lower bids due to shoddy workmanship, hiring cheap and incompetent subcontractors, and forgetting to include costs in their estimate.

Before you settle on the contractor with the lowest bid, do your homework first. Make sure he's licensed and bonded. Check with the CCB for this information. Ask for and check his past references. Ask the important questions listed above. To avoid hiring a guy who forgot to include a large percentage of costs, ask him for a detailed listing of everything included in the bid. If you have allowances, ask him to show you what he allowed for each item. Compare these allowances with those of the other candidates. You need to compare "apples to apples".

One more thing you should check on is the experience level of the contractor. If he's been in business for ten years or more, you should be safe. You don't want some guy who's only been in business for a couple years.

I'm Joe Wood and I've seen many disasters take place in the remodel business due to people hiring an incompetent contractor. To get more tips visit www.buildersportland.net

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