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STOP, if you want to make sure that you have a successful home improvement project…Be sure to READ THIS PAGE! Learn the Seven Questions You Should Ask Before Hiring a Contractor! The critical success factor in any construction project, is the contractor. A qualified, professional, experienced contractor knows what results are required for Owner satisfaction, as well as, what will lead to dissatisfaction down the road. Allow yourself a minimum of 1 hour to sit down with each contractor. Both of you need to explore the problems, products, and prices. You will be surprised at how many options and questions can be discussed with a professional contractor. Taking only 1 hour of time getting to know and qualifying the contractor prior to awarding your project can save endless hours of time dealing with dissatisfaction. Most dissatisfaction involves an Owner who did not fully know what they selected or committed themselves to. A professional contractor will take pride in his work and will have no problem discussing your options, his previous experience, and his list of satisfied customers. Make sure that you ask the following 7 questions to make sure that you select the best contractor for your next project… 1. Does the Contractor have a permanent place of business? All Contractor Selection Guidelines start with this question because most dissatisfaction involves low-bid undercapitalized contractors. If the contractor is not permanently established, how can you be confident he will complete the work – or will still be in business tomorrow to handle any problems? Automatically reject any contractor without a permanent place of business. The courts are full of dissatisfied Owners with worthless judgments against insolvent contractors. While there is no way to guarantee any business is financially stable, there are some tell-tale signs, and you can take to protect yourself, and assure your satisfaction. Visit the contractor’s place of business. Does it look like it has been established there for a long time? Does it appear that the equipment, manpower, and wherewithal is available to complete your project in a professional and timely manner? Automatically reject any bid from a contractor without substance. Do not be swayed by a personable contractor or his attractive low price. It is not worth the risk. Select only a contractor that is financially committed to the business. Select someone you can call if a problem arises in the future. A professional contractor will have no problem giving you a tour of the facilities and provide whatever financial proof is required for your peace of mind. Don’t be timid about asking. The professional respects these questions and knows that time is being well spent with an intelligent buyer. 2. Does the company carry insurance and is the coverage adequate? When deciding on a contractor be sure that the company can provide specific, detailed information of their insurance coverage. They should be able to provide the name and phone number of their insurance agent so you can verify everything. This is the second most important question. Owners have been financially harmed by uninsured or inadequately insured contractors. Automatically reject any contractor without proper and adequate insurance. A contractor should provide you with a Certificate of Insurance for Comprehensive Liability and Worker’s Compensation Insurance that protects you in the event of an accident or provides financial coverage for a failed project. The insurance should be adequate to cover the property. Contractors may also carry other forms of insurance, such as health insurance and vehicle insurance. Do not be confused by these policies. Do not allow the contractor to pass them off as his proof of “contractors” insurance. Call the insurance company and verify coverage. Contractor insurance policies are for one year; and unscrupulous contractors have been known to modify the dates. Check carefully the dates on the Certificate of Insurance. Is it current? Worker Accidents: Be aware that Owners are sued for injuries on their property. Most Owner Insurance Policies exclude outside contractors, so it is critical to make sure there is proper and adequate coverage. Don’t be fooled by the contractor who says he doesn’t need insurance because he is self-employed. A tell-tale pattern of an uninsured or underinsured contractor is the low-bid. Be very wary of the low-bid. Also be wary of multiple low bids. You may have several uninsured contractors bidding the project. Today, insurance to protect the workers and your property is a significant cost of a construction project. For example, Worker’s compensation premiums are typically no less than 20%-30% on top of the worker’s wage. The contractor, working without insurance, saves between 20% and 30% of his labor cost by operating without insurance, but he places you at great risk. The contractor working without insurance, generally has no assets and nothing to lose, so you as the Owner, are totally exposed to any losses. A professional contractor will readily provide you with a Certificate of Insurance and phone numbers you can call for verification. Job Site Safety: Safety violations are now causing projects to be shut down and penalties are levied against involved parties. Some Owners have been stuck with incomplete projects due to violations and the contractor’s unwillingness to pay fines or return to the site. In some cases, the Owner can be classified as the employer and they can or have been found responsible for the fines. Ask contractors about their Safety Plan, which is required by OSHA. Professional contractors will readily provide you with a Safety Plan so you are protected. The Safety Plan is another tell-tale sign of professionalism or the lack of same. 3. Is the company a licensed, registered contractor, and a member in good standing of a trade association? When licensing is required automatically reject any contractor who is not licensed. However, do not be fooled by a contractor with a license. Generally, the license requirements are minimal and the law is generally poorly enforced. A better test is to question the contractor’s commitment to his trade. Is he a member of the trade association? Call the association and verify the answer. Ask if the contractor is taking Continuing Education Training, similar to other up-to-date professionals. Ask to see certificates. A professional contractor will be only to happy to respond to these questions. Reject the contractor who blows off your questions as not being important. There are probably a lot of other issues he deems unimportant and will blow off, maybe one being your satisfaction.

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