How to Hire a Contractor

Hiring a contractor brings all sorts of stress and anxiety to the process of remodeling your home or apartment. For most people, their home is their most valuable and prized asset. Having a stranger work on your home is extremely nerve-wracking. Fortunately, there are plenty of experienced and honest contractors available. You can find them by requesting referrals from knowledgeable people and then interviewing potential hires. Make sure to sign a detailed contract before the contractor begins work, and regularly inspect the work they have done. If you are ever upset by something your contractor does, it is best to raise the issue immediately.

Part 1
Part 1 of 4:

Obtaining Referrals to Quality Contractors

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    Identify the kind of contractor you need. There are many kinds of contractors, and you’ll make the selection process much easier if you identify ahead of time what kind of contractor you need. Generally, there are two types:[1]
    • General contractor. This person manages an entire project. They hire subcontractors and supervise them. General contractors also obtain building permits and help schedule inspections.[2]
    • Specialty contractor. A specialty contractor installs only certain fixtures or products. For example, a contractor might specialize in plumbing, heating and cooling systems, or electrical wiring.[3]
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    Ask friends or family for a referral. If you know somebody who has had a home built or renovated, then ask them if they would recommend their contractor.[4] Ask what they liked and didn’t like about the contractor.
    • Make sure to check the work the contractor performed. You’ll want to judge with your own eyes whether they did a good job.
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    Obtain referrals from a building inspector. Your local building inspector will know the reputations of people in the building industry. You should call and ask if they can refer someone.[5] Tell the building inspector what kind of work you need done on your home.
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    Ask for referrals at the lumberyard. The people who work at your nearest lumberyard know quite a bit about local contractors. For example, they know which ones use only high-grade materials. They also know which ones pay their bills on time.[6]
    • You might feel awkward simply showing up at a lumberyard, so you can call instead. Identify yourself and say you are looking for a contractor. Ask if they know anyone.
    • Say, “Hi. I’m Michael Jones, and I’m looking for a contractor to remodel my bathroom. Do you by chance know of anyone who does good work? I have no idea where to even find referrals.”
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    Check with the National Association of the Remodeling Industry (NARI). You can find a remodeler at this association’s website.[7] Visit http://www.nari.org/consumers/ and enter your location.
    • NARI’s members can qualify as certified, master certified, and green certified professional remodelers. Its members must uphold high ethical and industry standards.
    • NARI has members in 49 states.[8]
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    Stay alert to scams. Keep your eyes peeled for potential scammers and avoid anyone who makes you uncomfortable. There are red flags you should be aware of, including the following:[9]
    • Someone knocks on your door and asks if you need a contractor.
    • The contractor offers you a discount if you can drum up more business for them.
    • The contractor has unused materials from a previous job.
    • You feel pressured to make quick decisions.
    • The contractor asks you to pay everything upfront or recommends a lender the contractor knows.
    • There is no business number in the phone directory for the contractor. The contractor also has no fixed street address.
    • The contractor asks you to get building permits. This is the general contractor’s job, and if they avoid doing it, then this signals there is a problem.
    • The contractor offers a long-term or lifetime guarantee on the work they perform.
Part 2
Part 2 of 4:

Researching Contractors

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    Check online reviews. You should always check a contractor’s online reputation by doing a general Google search. Also look for review sites and analyze whether a lot of people have complained of being ripped off.[10]
    • You can also check with your local Better Business Bureau or your state’s consumer protection agency to see whether the contractor has a long list of complaints filed against them.[11]
    • Take anonymous reviews with a grain of salt. Anonymous reviews could be posted by a contractor’s competitors or by people with a grudge.
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    Confirm the contractor is licensed.[12] Not every state requires contractors to be licensed, but you should check with your local building department to ask.[13] If your state requires that contractors be licensed, then ask the contractor if they are licensed and when.
    • Also double check to confirm the contractor is licensed. If your state requires a license, then there should be a website you can search. Go online and search “your state” and “contractor license.” In Washington, for example, you can search at the state’s Department of Labor and Industries website.
    • At the same website, you may also be able to check whether the contractor is bonded and has insurance. A legitimate contractor should have both.
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    Ask a contractor questions in a phone interview. You shouldn’t hire a contractor without speaking to them. Instead, make a quick call to everyone on your list. Ask the following questions, at a minimum:[14]
    • How long have they been in business?
    • Does the contractor accept projects like yours (size, type, location, etc.)?
    • How many projects do they have ongoing right now?
    • How do they select subcontractors, and how long have they worked with them?
    • Can the contractor work around your schedule? For example, you might not want anyone in your house before 9:00 am or after 6:00 pm. It’s best to know this information ahead of time.[15]
    • Can they provide you with an itemized bid?[16]
    • Is this bid an estimate or a fixed price?
    • What kinds of insurance do they carry? A contractor should carry workers’ compensation, personal liability, and property damage coverage.[17] Can they provide you with certificates of insurance?
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    Meet with three contractors. Narrow down your list to three contractors and schedule a time to meet them in person.[18] At the interview, you can explain your remodeling job. The contractor should be able to tell you whether it is feasible.
    • Pay attention to how personable the contractor is, and whether they explain things simply to you. You will be seeing a lot of the contractor, so you want to hire someone you are comfortable with.[19]
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    Call references. You should ask a contractor to provide you with at least three references. Call up the references and ask questions. For example, be sure to ask the following:[20]
    • How long ago did the contractor work for them?
    • Was the project completed on time? Were there any cost overruns?
    • Were they satisfied with the work the contractor did?
    • Did workers clean up after themselves or was the jobsite left a mess?
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    Visit jobs in progress. A great way to see a contractor in action is to visit a job that is currently ongoing. Ask the contractors whether you can stop in and check out how things are going.[21]
    • Check the neatness of the job site. Are materials in the right place or is the place a disaster zone?
    • Also consider how considerate the contractor is to the homeowner.[22] You should avoid anyone who is careless with a client’s property.
    • If possible, you might be able to combine your interview with a visit to the job site.
Part 3
Part 3 of 4:

Selecting the Contractor

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    Analyze the bids. Your instinct might be to select the lowest bid. However, you should be careful. Someone with a very low bid might try to cut corners or do shoddy work.[23]
    • A contractor with a low bid might also not have much work. As of 2016, the home building business is strong, so there should be plenty of work to go around for a competent contractor.
    • Avoid choosing someone you can’t afford. Instead, look at contractors who submit reasonable bids that you are comfortable with.
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    Consider how well you communicated. Communication is key to the contractor-client relationship.[24] You want someone who can explain things to you in a way you understand.[25] Avoid anyone who intimidates you or makes you feel uncomfortable.
    • If you feel equally comfortable with more than one contractor, then base your decision on other factors, such as their experience or price.
  3. 3
    Discuss a payment schedule. You should avoid paying for the entire project before it is completed. Furthermore, your state law might limit how much you can pay upfront.[26] Discuss a payment schedule with the contractor.
    • Research your state law by contacting a local consumer protection agency, which you can find in the phone book or online. Regardless of your state law, try to limit the amount of any down payment to no more than a third.
    • Ideally, you should not pay with cash. If the project is small, then think about paying with a credit card or personal check.[27]
    • Tie payment to certain benchmarks. For example, if you are having a home built, you can pay a certain amount once the foundation is laid, and another sum after the roof has been put on, etc. Using benchmarks is helpful, because the contractor doesn’t get paid if work is delayed. This provides incentive to work diligently.
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    Sign a contract. Call up the contractor you feel most comfortable with and hire them. Then make sure you have a detailed contract in place before any work begins.[28] The contractor might draft the contract. If not, then you can hire a lawyer to draft the contract for you. If costs are a concern, then you might need to draft your own. Make sure the contract contains the following:[29]
    • a detailed description of the work, including a complete set of drawings with written specifications
    • the brand of materials that will be used or installed
    • the start and finish dates
    • the payment schedule
    • any guarantees
    • your signature and the contractor’s signature
Part 4
Part 4 of 4:

Working Successfully with Your Contractor

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    Inspect the work. Don’t sign a contract and then disappear. Instead, inspect the contractor’s work by stopping in. Make sure the contractor is adhering to the schedule as spelled out in the contract.[30]
    • It’s also a good idea to have regular meetings with the contractor to discuss any issues that have arisen. A conscientious contractor should reach out to you, but don’t wait. Instead, call them and ask for a meeting to check in.
    • If you’re unhappy with anything, bring it to the contractor’s attention immediately.
    • If something needs to be changed, then write up a change order. Avoid unwritten agreements.
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    Keep detailed records. Hold onto everything. If you don’t have a filing cabinet, then think about buying a small one. Alternately, get a giant folder you can store documents in. You’ll want to keep the following:[31]
    • copy of your signed contract
    • all correspondence between you and the contractor
    • proof of all payments, including receipts for tax purposes
    • any change orders
    • certificates of insurance
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    Pay the contractor. Your reputation as a client is every bit as important as the contractor’s reputation is to them. You don’t want to develop a reputation of shortchanging contractors. Instead, pay according to the payment schedule.
    • However, you should never make a final payment unless you are satisfied with the work performed and are assured that subcontractors and suppliers have been paid.[32]
    • In some states, suppliers and subcontractors can come after you by putting a lien on your house if the general contractor has not paid them. Before final payment, ask every subcontractor and supplier for a lien release or waiver.

Expert Q&A

  • Question
    How do I protect myself when hiring a contractor?
    GreatBuildz
    GreatBuildz
    Contractor Matching Service
    GreatBuildz is a free service that matches homeowners with reliable, pre-screened general contractors. GreatBuildz was founded by a team of real estate and construction experts who believe everyone deserves to find a great contractor, have a stress-free renovation, and enjoy their beautiful new space. GreatBuildz connects homeowners with reputable contractors who passed their rigorous screening process and signed their code of conduct. GreatBuildz also individually selects contractors for the specific project and provides ongoing support to ensure everything goes smoothly.
    GreatBuildz
    GreatBuildz
    Contractor Matching Service
    Expert Answer
    At the bare minimum, ensure the contractor is licensed and has adequate liability and worker's compensation insurance.
  • Question
    What does it cost to hire a general contractor?
    GreatBuildz
    GreatBuildz
    Contractor Matching Service
    GreatBuildz is a free service that matches homeowners with reliable, pre-screened general contractors. GreatBuildz was founded by a team of real estate and construction experts who believe everyone deserves to find a great contractor, have a stress-free renovation, and enjoy their beautiful new space. GreatBuildz connects homeowners with reputable contractors who passed their rigorous screening process and signed their code of conduct. GreatBuildz also individually selects contractors for the specific project and provides ongoing support to ensure everything goes smoothly.
    GreatBuildz
    GreatBuildz
    Contractor Matching Service
    Expert Answer
    That will all depend on the job you need to be done and the location. Most contractors will charge more for complex jobs and jobs that require travel.
  • Question
    How can I save on construction costs?
    Ken Koster, MS
    Ken Koster, MS
    Master's Degree, Computer Science, Stanford University
    Ken Koster is the Co-founder and CTO of Ceevra, a medical technology company. He has over 15 years of experience programming and leading software teams at Silicon Valley companies. Ken holds a BS and MS in Computer Science from Stanford University.
    Ken Koster, MS
    Ken Koster, MS
    Master's Degree, Computer Science, Stanford University
    Expert Answer
    Decide if there's anything you can do yourself. We needed a contractor for just about everything. We didn't have any experience doing plumbing, electrical, framing, or drywall. The things we were comfortable doing were things like the painting, and we actually were able to save a little by doing that ourselves.

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References

  1. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  2. ↑ GreatBuildz. Contractor Matching Service. Expert Interview. 25 November 2020.
  3. ↑ GreatBuildz. Contractor Matching Service. Expert Interview. 25 November 2020.
  4. ↑ GreatBuildz. Contractor Matching Service. Expert Interview. 25 November 2020.
  5. ↑ https://www.thisoldhouse.com/ideas/top-8-pro-tips-how-to-hire-contractor
  6. ↑ https://www.thisoldhouse.com/ideas/top-8-pro-tips-how-to-hire-contractor
  7. ↑ https://www.thisoldhouse.com/ideas/top-8-pro-tips-how-to-hire-contractor
  8. ↑ http://www.nari.org/about-nari/
  9. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  1. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  2. ↑ https://www.thisoldhouse.com/ideas/top-8-pro-tips-how-to-hire-contractor
  3. ↑ GreatBuildz. Contractor Matching Service. Expert Interview. 25 November 2020.
  4. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  5. ↑ https://www.thisoldhouse.com/ideas/top-8-pro-tips-how-to-hire-contractor
  6. ↑ http://www.popularmechanics.com/home/interior-projects/how-to/g648/10-tips-for-hiring-a-contractor/
  7. ↑ https://www.houselogic.com/remodel/budgeting-contracting/five-essential-questions-ask-before-hiring-contractor/
  8. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  9. ↑ https://www.thisoldhouse.com/ideas/top-8-pro-tips-how-to-hire-contractor
  10. ↑ GreatBuildz. Contractor Matching Service. Expert Interview. 25 November 2020.
  11. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  12. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  13. ↑ https://www.thisoldhouse.com/ideas/top-8-pro-tips-how-to-hire-contractor
  14. ↑ GreatBuildz. Contractor Matching Service. Expert Interview. 25 November 2020.
  15. ↑ GreatBuildz. Contractor Matching Service. Expert Interview. 25 November 2020.
  16. ↑ https://www.thisoldhouse.com/ideas/top-8-pro-tips-how-to-hire-contractor
  17. ↑ https://www.travelers.com/claims/hiring-a-contractor.aspx
  18. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  19. ↑ http://www.popularmechanics.com/home/interior-projects/how-to/g648/10-tips-for-hiring-a-contractor/
  20. ↑ https://www.travelers.com/claims/hiring-a-contractor.aspx
  21. ↑ http://www.lni.wa.gov/tradeslicensing/contractors/hirecon/checklist/monitor3.asp
  22. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  23. ↑ https://www.consumer.ftc.gov/articles/0242-hiring-contractor
  24. ↑ http://money.usnews.com/money/personal-finance/articles/2014/11/14/18-tips-for-finding-a-reliable-home-contractor

About this article

GreatBuildz
Co-authored by:
GreatBuildz
Contractor Matching Service
This article was co-authored by GreatBuildz. GreatBuildz is a free service that matches homeowners with reliable, pre-screened general contractors. GreatBuildz was founded by a team of real estate and construction experts who believe everyone deserves to find a great contractor, have a stress-free renovation, and enjoy their beautiful new space. GreatBuildz connects homeowners with reputable contractors who passed their rigorous screening process and signed their code of conduct. GreatBuildz also individually selects contractors for the specific project and provides ongoing support to ensure everything goes smoothly. This article has been viewed 21,831 times.
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Co-authors: 11
Updated: December 23, 2022
Views: 21,831