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    9 Secrets to Hiring a Good Contractor

    9 Secrets to Hiring a Good Contractor

    Don't let this happen to you! When searching for a contractor to do new construction or renovations and improvements to an existing home, there are some key considerations to keep in mind to help you find a reputable company that will do quality work. Short of hiring Mike Holmes to do the job, there are numerous ways to check if a contractor is reputable which will save you major headaches and expense over the long run. (Mike’s probably booked up for the next few years anyway.)

    1.  Verify the License Contractors are required to have a valid license in most jurisdictions, although some governments may only require a contractor to be registered. You can check if a contractor has a valid license by asking the contractor to show you his/her license. Then contact the state, provincial or territorial government department that issued the license to make sure that it is still valid.

    2.  Insurance Coverage

    All contractors should have insurance to properly cover them in the event of any accidents causing injury, death, or damage to property. If a contractor does not have the right kinds or sufficient amounts of insurance coverage, you - as homeowner - run the risk of being held liable for any accidents on your property, including injury to subcontractors. Be sure that your construction contract specifically addresses the contractor’s responsibility to carry adequate liability, property damage, and workers’ compensation insurance at all times during the project. Verify the coverage by obtaining a copy of the insurance policies from the contractor.

    3.  View the Portfolio

    Some contractors will put together a portfolio of the work they have previously completed. Ask the contractor if they have a portfolio, and review the pictures and information in it. This will give you a good idea of the quality of work the contractor is able to provide.

    4.  Check References

    This point goes hand in hand with point #3 above. Ask the contractor for a list of references (or get a list of the homeowners from the portfolio) and contact them to get their opinions on the projects they had completed. If possible, go and view the finished projects for yourself. Here are some questions that you should ask these references:

    • Were you happy with the finished project and the quality of workmanship?
    • Did the contractor stay on budget, within their original estimate?
    • Was the project finished on schedule?
    • Did the contractor stick to the contract terms?
    • What was the attitude and work habits of the workers on the job?
    • How sensitive was the contractor to the needs of the people living in the home during the construction?
    • Did the contractor listen to you when you had a problem, and work toward resolving it?
    • Did the contractor willingly make any necessary corrections?
    • Did the workers keep the site area clean and safe? Did they perform a complete cleanup at the completion of the project?
    • Would you use this contractor again?
    • Would you recommend them to friends and family?

    In addition to talking with other customers, obtain references from material suppliers, subcontractors, and financial institutions, if possible, to determine whether the contractor is financially responsible. Check with the local trade association, consumer protection agency, consumer fraud agency and the Better Business Bureau to see if they have information about, or have received any complaints concerning, this contractor. If the contractor is a company, check out both the company and the owners of the company, who may have been doing business under another name in the past.

    5.  Verify the Business Location

    Verify the contractor’s business address and telephone number. A contractor who operates a business out of the back of a truck or van using a mobile phone may be difficult to find if you need him to fix something that has gone wrong after the job is complete and the last bill is paid. 6.  Referral Agencies Some municipalities have referral agencies that run checks on local contractors. They will only list and refer contractors that are licensed, insured, bonded, and have a good reputation for their work performed. Check your local directories and find out if there is a contractor referral agency in your area.

    7.  Payment Schedules

    Discuss with the contractor how payment is to be made, and put this in writing in your construction contract. Most contractors will require a deposit, which could be as much as 50% of the contract price. Remaining payments may be calculated as percentages of the balance outstanding, and are due and payable as different stages of work are completed. Do not pay a contractor with cash. Paying by check or credit card will enable you to track payments and purchases for the project.

    8.  Shop Around

    Get at least 3 quotes for the work, and do not let the lowest price be the sole determining factor in whether you hire the contractor, especially if the estimate is extremely low when compared to the other quotes. A substantially lower bid may indicate that the contractor has made a mistake or is not including all the work quoted by the other competitors. It’s also possible that the contractor will cut corners, use substandard materials or perform sub-par work in order to make a profit on the job. Consider all the factors when making your decision: price, references, professional reputation, quality of work, etc. As the saying goes, you get what you pay for.

    9.  Hire a Designer

    If you’re planning a large project, you should consider hiring a designer. Designers can draw up a set of plans and material specifications to detail exactly what you want. A good designer can give you oversight on the entire project, provide contractors with detailed information to base their estimate on, and reduce the likelihood and frequency of potential problems with the project. They may also oversee the project on an ongoing basis to make sure things are proceeding according to the plans and specifications.   Take the time to find out the facts about a contractor before you hire them. After all, your home is one of your most valuable assets. Isn't it worth investing a little time to make sure you're hiring the right people for the job? Otherwise, you might be contacting Mike Holmes after all!

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