Finally, a checklist that makes doing some homework on a contractor much easier. Simply put, the more homework you do on a contractor before hiring them, the more successful your home improvement project is likely to be. This checklist consists of 8 basic steps that will tell you a lot about the company you are considering. Plus, 5 basic tips you may find helpful.
I’ve interviewed dozens of contractors on various radio shows including Homework Houston. Their input along with some valuable information from the Better Business Bureau and the Texas Department of Licensing and Regulation have been utilized for the Homework Houston Contractor Checklist.
1. Check the contractor’s license. It’s the first and easiest step. If it is required by the nature of the business or industry, checking the validity of that license is an important part of your homework. The Texas Department of Licensing and Regulation makes it easy to do on line with little time required. Check for the validity of the license and if any complaints have been filed.
www.license.state.tx.us
2. Review the rating with the Better Business Bureau. Look for unanswered or unresolved complaints. You’ll also find some basic information on the company and its owner.
www.bbbhou.org
3. Do a basic Google search. Search both the company name and the owner’s name. Look for problems or unhappy customers.
www.google.com
4. Ask for references. Seriously. Check 3 former clients and 3 three business references. Visit the job sites to verify the clients. Ask for a reference that is several years old and see how the project held up. Call the business references such as suppliers and vendors to check on the good standing of the company.
5. Ask about industry affiliations. What trade organizations do the company belong to? Do they serve as board members? Call to verify the membership and the level of activity.
6. Confirm insurance coverage. Request that a certificate of insurance be sent directly from the agent or insurance carrier. Don’t accept a printed copy from the contractor. Dan Parsons at the BBB says that is an area where they see a lot of fraud.
7. Ask for a lien release. This protects you from liens should the contractor not pay their suppliers or subcontractors.
8. Ask how long the contractor has been in business under their current name. Look for 5 years of experience or more. Verify the length of time the company has been in business with the BBB.
From my experience interviewing contractors, here are 5 tips to keep in mind.
1. Visit the contractor’s office. Mark Feinhandler at Preferred Builders says this is extremely important. Make sure the contractor has a physical address and that you are comfortable with the surroundings and the customer service demonstrated by staff members during your visit.
2. Be extra cautious when considering a door-to-door contractor who solicits you. Some contractors market themselves in the neighborhoods where they are working. Nothing wrong with that. But, avoid those contractors out pitching for new business with no ties to your neighborhood. Verify that they are doing what they claim.
3. Don’t fall for the “limited time” discounts. They are just high-pressure closing tactics. And don’t believe the “volume discounts” either.
4. Compare written bids. Specify identical materials to make sure you’re comparing apples to apples. Don’t rely on anything that is not in writing.
5. Don’t pay for the whole project until you are completely satisfied. I learned this one the hard way. Don’t pay more than a third of the cost of the project up front. Pay another third when most of the work is completed. Make the final payment at the very end of the project when you are happy with the work.
Share your contractor stories with me via email. You’ll find the link on the Contact Page. Or, call me during the Homework Houston radio show, Thursday and Fridays at 1:00 p.m. on AM 700 KSEV.
