How
long have you been in business?
Look for a well-established company and check it out with
consumer protection officials. They can tell you if there are
unresolved consumer complaints on file. One caveat: No record of
complaints against a particular contractor doesn’t necessarily
mean no previous consumer problems. It may be that problems
exist, but have not yet been reported, or that the contractor is
doing business under several different names.
Are you licensed and
registered with the state? While most states license
electrical and plumbing contractors, only 36 states have some
type of licensing and registration statutes affecting
contractors, remodelers, and/or specialty contractors. The
licensing can range from simple registration to a detailed
qualification process. Also, the licensing requirements in one
locality may be different from the requirements in the rest of
the state. Check with your local building department or consumer
protection agency to find out about licensing requirements in
your area. If your state has licensing laws, ask to see the
contractor’s license. Make sure it’s current.
How many projects like mine
have you completed in the last year? Ask for a list. This
will help you determine how familiar the contractor is with your
type of project.
Will my project require a
permit? Most states and localities require permits for
building projects, even for simple jobs like decks. A competent
contractor will get all the necessary permits before starting
work on your project. Be suspicious if the contractor asks you
to get the permit(s). It could mean that the contractor is not
licensed or registered, as required by your state or locality.
May I have a list of
references? The contractor should be able to give you the
names, addresses, and phone numbers of at least three clients
who have projects similar to yours. Ask each how long ago the
project was completed and if you can see it. Also, tell the
contractor that you’d like to visit jobs in progress.
Will you be using
subcontractors on this project? If yes, ask to meet them,
and make sure they have current insurance coverage and licenses,
if required. Also ask them if they were paid on time by this
contractor. A "mechanic’s lien" could be placed on
your home if your contractor fails to pay the subcontractors and
suppliers on your project. That means the subcontractors and
suppliers could go to court to force you to sell your home to
satisfy their unpaid bills from your project. Protect yourself
by asking the contractor, and every subcontractor and supplier,
for a lien release or lien waiver.
What types of insurance do
you carry? Contractors should have personal liability,
worker’s compensation, and property damage coverage. Ask for
copies of insurance certificates, and make sure they’re
current. Avoid doing business with contractors who don’t carry
the appropriate insurance. Otherwise, you’ll be held liable
for any injuries and damages that occur during the project.
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