8 Things to Know About Hiring a Contractor

Find out how to choose the right contractor for your project and set terms that keep both of you accountable and happy.

By Bill LaHay

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1. Know what you want. As the client, you are the one driving the process. Before speaking with contractors, spend time thinking about your goals for the project -- what it might look like, the amenities you want, and so on. If you don't know how to translate your goals into specific features or products, hire a design consultant or a design-build firm that can offer that service.
2. Get bids from several contractors. Three bids is considered the minimum number, but a half dozen will give you a clearer picture of how these companies stack up against each other. Not only will you get more perspective on appropriate costs, but also you'll get an idea of the caliber of work that each contractor will provide. For example, one contractor may offer a bargain rate and marginal work; another's high bid could indicate quality.
3. Do background checks. Even if a friend or relative has recommended a contractor that he or she has used before, you should establish some minimum credentials. Get the full company name and address, and make sure that the firm has a current state license and adequate insurance coverage. (Typically, this means at least a million dollars in liability and worker's compensation coverage.) Get license and policy numbers, then verify that they are current. Determine whether any formal complaints or legal actions have occurred in the past or are pending.
4. Investigate a contractor's work history and work habits. Some contractors are specialists and some are generalists, so make sure their abilities are appropriate to your project. Take time to see their work firsthand, and look for three things: some similarity to your project, quality materials and workmanship, and consistent client satisfaction. Also, track small indicators that signal professionalism or a lack thereof. Are your phone calls returned in a timely manner? Are appointments and meeting times kept? Do company vehicles and/or dress code reflect pride and cleanliness? Carelessness in these small matters does not bode well for the quality of work.