Hiring A Contractor Text Size:

When hiring a contractor to renovate or rebuild a home or small business, dealing with contractors has its challenges. Here are some suggestions to help you choose a contractor and ensure that your contractor does the job that you hired him to do.

Hiring a Contractor

When you're deciding who to hire as the general contractor for your project:

• Get referrals from friends, relatives and coworkers
• Get written bids from several contractors, based on the same requirements for the job
• Contact your local Better Business Bureau to find out how long a contractor has been in business and whether there have been complaints against the contractor
• Ask the contractor about membership in any professional builders or remodelers' organizations or associations
• Ask the contractor for proof of insurance against workers' compensation claims, property damage and personal liability in the case of injuries
• Ask the contractor for local references including his bank
• Check with local and state consumer protection agencies to see whether there have been complaints against a particular contractor
• Check with local construction authorities to be sure a contractor meets local licensing and bonding requirements
• Compare contractors' bids, with identical materials to be used and time allowed for the project
• Remember that cheaper doesn't always mean better

Get It in Writing

When you've chosen a general contractor for your project, you should get all agreements and promises in writing up front to protect yourself.

Don't sign anything you don't understand, and don't be afraid to make changes to the written agreement before signing it.

A construction contract should include:

• The contractor's name, address, phone and fax numbers
• A detailed description of all the work to be done
• A detailed description of the materials to be used, including brand names, size, weight and so forth
• Starting and completion dates
• Total costs, and the hourly rate for labor
• A payment schedule for the project (your aim should be to pay as little upfront as possible and to make regular payments throughout the project, with the right to withhold payments if the work has not been completed to your satisfaction)
• Any guarantees the contractor is making
• A statement allowing you to cancel the contract within so many business days (under your state's laws)
• A statement allowing you to cancel the contract after the work has begun if you find unexpected or hidden problems (like serious plumbing problems) after the job has begun
• Any warranties regarding workmanship the contractor is making
• The bonding and licensing numbers of the contractor
• The contractor's responsibility to pay any subcontractors before you make final payment to the general contractor
• The contractor's responsibility to obtain any necessary permits

Beware of Scams

Some contractors promise more than they can deliver, and they may offer you "special deals" for things that you really don't want.

To protect yourself from getting hammered:

• Don't let anyone pressure you into signing a contract you don't understand and haven't thoroughly read through
• Don't agree to financing arrangements that you can't afford
• Don't agree to any type of financing without first comparing prices and interest rates, so you know you're getting a good deal

Questions for Your Attorney

If you're hiring a contractor to do significant work on your business, you may save yourself time, money and headaches by having a lawyer review the contractor's contract.

Among the questions to consider asking your lawyer:

• Are there sections within this contract that should be changed or removed?
• Are there sections that should be added to this contract to protect me?
• Are there additional steps I can take to prevent problems from occurring?

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