Hiring a Contractor: What You Need to Know

By: Carina MacDonald

Remodeling your house can be a difficult project with all the mess and disruption. How smoothly the job goes depends on the conscientiousness and skill of your remodeling contractor and how wisely you choose him or her. As a homeowner, you can also do a lot to help the job go well. Hiring a good contractor who has his contractor's license and insurance is half the battle, but there are other things you should be aware of as well.

Hiring a Contractor

First, know what you want. If the job involves moving load-bearing walls or extensive remodeling, you need to have a reputable and licensed architect draw up plans. Before you take bids for your project, you'll want a comprehensive idea of the finished project, down to the fixtures and paint color, before you hire a contractor. A general contractor cannot give you a detailed bid without knowing all the details.

Ask friends, neighbors and coworkers for referrals--a happy former client will gladly refer a contractor. Don't rely only on referrals provided by your contractor, because he'll only give you his most satisfied clients. Your contractor should have plenty of experience with your particular type of project. Someone who has built a portfolio of garages and exterior renovations may not be the best person to remodel your kitchen.

Check Insurance and License

Your contractor must have liability and workman's compensation insurance. Check this before signing any agreement and get a certificate of liability from his insurance company stating that he will be covered for the duration of your project. Unless his subcontractors are his employees, ask that they have liability and workman's compensation as well.

If your state requires a contractor to be licensed, make sure the license is valid so he can pull necessary permits. You also must like and trust the contractor you choose. This person will be spending a considerable amount of time in your home. It is also a good idea to check the Web site of your local Better Business Bureau. If the contractor is not a member, it doesn't mean they are not reputable, but you can see if any complaints have been filed and whether they were resolved.

Getting Estimates and Coming to an Agreement

Get at least three detailed estimates. Don't make cost your only consideration when comparing bids, but do question any estimate that is sharply lower or higher than the others. If one bid is considerably lower than the others, the contractor might not be including everything and you could be hit with add-ons later, or he could be planning on cutting corners with cheap labor or materials. Remember that a contractor is only as good as his subcontractors. Ask him about his subs and how long they've worked together. A good contractor will have good subcontractors he uses regularly.

Ask the bidders if they will be working on your project exclusively. You don't want your contractor running between your job and someone else's job. Get everything in writing, including details such as who will be responsible for cleanup and trash removal. Agree on a payment schedule based on work done, with no more than 10% of the job paid up-front when work commences. Always make the final payment contingent upon your complete satisfaction and completion of a final inspection.

Get a start date and estimated finish date. Remember that weather, suppliers and plan changes are out of your contractor's control and may delay progress. Have him write down the brand and model names of everything from cabinets to light fixtures and agree that substitutions will not be made without approval. Get a very detailed listing of all labor to be performed, right down to type of subfloor and number of coats of paint.

The Customer's Role

Keep the job moving forward by making sure your contractor and subcontractors have access to your house when they need to work. Make all agreed-upon progress payments on time. Be available for questions and concerns when you are not at home. Understand that if you change your mind, even about small details, this can delay progress. If you have any worries about job quality or timeliness, voice them openly and calmly. Your contractor should be your ally, not an adversary.

As long as your contractor is cleaning up daily, try to be patient about the inevitable mess and disruption created by a remodel. A remodeling job uses a lot of water and power, so expect your utility bills to be a little higher. Remove all fragile or valuable items from the work area.


If smoking is not allowed in your home, a cigarette disposal can outside is a nice touch. If you have chosen your contractor wisely, the renovation process will soon be a distant memory and you'll have your house back, more functional and beautiful than before.

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