Hiring a contractor

You are ready to make those improvements on your home – maybe you are ready to sell it, need equity from it or just want to make the place look better. Nevertheless, finding the right people to help you get the job done requires knowing a few basics.

First of all, there are contractors and there are handymen. The handyman often limits his work to hourly or daily jobs and lives by a whole different set of rules than the home improvement contractor. When hiring a contractor, here are a few things to know:

1. Have a good idea of what you want. You shouldn't even talk to a contractor before you have a fairly clear idea of the scope of the job and the desired end result. Ceramic tile or fiberglass enclosure? Multilevel deck or large platform? Vaulted or cathedral ceilings? Skylights or sun tunnels? You don't have to know all the minute details of laying a foundation or putting up drywall... just a clear vision of the finished job and the major components.

The contractor can help you work within your budget but cannot possibly present you with samples of every product available. This is the job of a home designer or architect and is unfair to expect this, especially on smaller jobs.

One great place to start educating yourself about all the decisions you will need to make is through home-related publications. Visit any of the larger bookstores and you will find walls of magazines on home decor, remodeling and renovation. There are also many magazines that specialize in certain types of jobs, such as kitchens and bathrooms. Though these publications tend to showcase top-end products and intricate designs, the fact is you can learn much about your own likes and dislikes while educating yourself about the variety of available products... all from your living room sofa.

2. Finding your contractor. Though there may be hundreds of contractors in the Yellow Pages and newspapers, this is of little value to you, except to help you to develop a list. By far the best way to find a good contractor is through a direct referral from someone you trust who has successfully completed a similar project. The next best source of referrals is your local hardware store, home store or lumberyard. Established businesses are loath to give a referral to a contractor who will hurt their reputations. A business that receives valid negative feedback about a contractor will stop referring him.

3. Qualifying your contractor. To qualify your contractor, complete the following:

A. The contractor should come and look at the job. Some contractors will try and give a job quote sight unseen. This is most common with tradesmen... electricians and plumbers... especially when they are very busy. You still want him to come to your home. Why? Well, you can tell a lot about a person by talking to him face-to-face that you just can't get over the phone. Look at his truck, his physical appearance.

B. Licensing and/or registration -Every state has different rules and contractors are expected to follow them. Some states require licensing for all contractors, some are based on the average size of the job, others require licensing fees per job, and some require nothing at all! In some large metropolitan areas, the rules can vary literally from block to block! Some states defer to local governments. To determine the licensing requirements for your area, call your local building inspector or town hall.

C. Insurance is not optional -Liability and medical insurance for contractors may or may not be required in your state, but it must be for anyone working in your home! Hiring an uninsured contractor is hiring an irresponsible contractor. Require that they present a certificate of insurance prior to signing any contracts, and call the agent to verify that the policy actually exists and what it covers. At a minimum, the contractor's general liability policy should be 100% of the value of your home.


4. Get at least three clearly written, understandable bids on any project. The written quote will give you first real sense of what you project will entail and how much it will cost. The quality, clarity and style of the quote will tell you a lot about the contractor and his penchant for detail. Clarity and detail is important. Without the details of the project on paper in an understandable fashion, it is impossible for you to compare the bids from the different contractors, making your choice of contractor all the more difficult.

Taking a very low bid may be looking for trouble. It could leave the contractor cash-strapped and begging for more money later. One of the main causes of an honest contractor pulling a Houdini is that he needs money to live on, so he moves on to another job temporarily to feed the family. This is a particular problem with smaller contractors who do not have adequate credit and must "pay-as-they-go". Mounting materials costs and poor financial planning can drive them from your job and into the arms of another! Then again, you might find that the low bidder is the only one not overpricing the job. Only by having quality quotes will you be able to make an intelligent choice.

5. Get a written contract. A complete, clearly written contract is absolutely essential for both trust and peace of mind! For example, if it does not say in the contract that he will clean your yard after tearing off the three layers of shingles on your roof… better get it written in. Everything you and the contractor agree to should be in the contract!

Greg Sullivan is the President of www.electronicappraiser.com, a leading provider of home appraisals offering a nationwide personalized instant home appraisal service. For more information, please visit www.electronicappraiser.com.