Professional Tips For Hiring a Contractor

Are you thinking about hiring a professional contractor? Here are some essential tips you should know before finding an experienced contractor.

As you plan your home's renovations or repairs, choosing the right contractor for the job is the first step. You want to make sure you find the perfect person who can do the work you wish and agrees with how you want it done.

Sometimes, hiring a professional can be easier than doing the job yourself. However, choosing the wrong contractor can lead to delays, subpar work, and even legal problems.

No matter what you buy, you always want to ensure you're getting the most for your money. Regarding contractors, the cheapest option is not always the best. So, make sure you do your research before searching for a contractor to work with to save you money and time.

Your home is a serious investment. When repairing it, consider some tips, tricks, and steps to protect your investment and ensure a certified contractor repairs your home.

Here are the tips for hiring a professional contractor. 

1. Research and Collect Information

Thoroughly researching a contractor's background and work history will give you a complete picture of their experience with your type of project, helping you decide if they are a good fit. 

If you're unsure where to start when hiring a contractor, ask your family, friends, and neighbors for recommendations, as well as other reliable online sources that allow you to search for contractors by the type of service you're looking for. You may also want to read trusted reviews on these sources. 

No matter how you find potential options, be thorough in your research and make sure you're considering only insured, qualified contractors. Verify that any contractor you consider carries sufficient liability and workers' compensation insurance. 

Once you find contractors who look good, you should reach out and plan to meet them. Meeting them before will help you determine if they can complete your project, what other projects they are working on, or even how reliable their references are. This will help you narrow down your list fast. 

2. Check References

One way to verify a contractor's work is to contact former clients to find out how their project went and ask for any finished results. When speaking with references, you should ask about the contractor's work quality, how well they stuck to timelines and budgets, and their professionalism.  

It is also essential to know the dates of a contractor's previous projects to see if there are any significant time gaps between them. If the reference sheet shows six blank months, find out what happened and why nothing is there. An unsatisfied customer's name might have been removed from the list. 

3. Make Sure They Are Licensed

Possessing a valid license and insurance indicates a contractor's credibility and expertise. Before engaging a contractor's services, it is imperative to verify these qualifications diligently. It is advisable to consult your local licensing board to confirm the contractor's compliance with all necessary licenses for your specific project.

Furthermore, it is recommended that you request documentation of both liability insurance and workers' compensation coverage. These safeguards shield you from potential liabilities in the event of accidents during the project.

By FEMA guidelines, tangible evidence of the contractor's licensure is essential. It is advisable to engage your state's regulatory agency to ascertain their standing while ensuring the availability of valid insurance documentation, as only legitimate contractors will possess such documentation.

4. Specializes in Your Project Type

Depending on the nature of your home improvement project, engaging a contractor with the expertise required for the job is essential. Recognizing the diversity among contractors and carefully assessing your specific needs when seeking a suitable candidate is necessary.

Two primary categories of contractors exist, general and specialty contractors, each playing distinct roles in a project. General contractors are accountable for supervising construction assignments. Rather than performing the work themselves, they enlist subcontractors to execute the projects.

Conversely, specialty contractors are adept at handling specific tasks. They are recognized as specialized contractors and are proficient in plumbing, hardwood floors, electrical work, carpentry, roofing, and HVAC systems. Engaging a specialty contractor may be the most prudent course of action for minor tasks.

5. Have a Detailed Contract

When reviewing the contract, it's important to ensure that it includes a comprehensive outline of the project scope, materials, and equipment to be utilized. Additionally, verify that the payment schedule and project timeline are clearly outlined.

Always insist on a written agreement and take the time to review the contract carefully. If any terms or clauses are unclear, don't hesitate to seek guidance from a knowledgeable individual. Before signing, ensure that all spaces are appropriately filled in and that there are no blank areas.

Understanding the contract is crucial, particularly in the event of any modifications during the construction phase. It's advisable to document any changes in writing to preempt any potential disagreements that may necessitate legal intervention.

6. Conduct Phone Interviews

Once you have compiled a list of potential contractors in your area, it is advisable to conduct phone interviews to systematically narrow down your options and evaluate which contractor will best fulfill your requirements. It is prudent not to engage the services of the first contractor you encounter hastily. The following are some pertinent questions to consider during the interview:

1. Do they take on projects of your size?
2. Are they willing to provide financial references from suppliers or banks?
3. Can they give you a list of previous clients?
4. How many other projects would they have going at the same time?
5. How long have they worked with their subcontractors?

These inquiries effectively assess a contractor's experience, reliability, and capability to oversee your project efficiently. Carefully observe their responses to gauge their professionalism and communication skills when considering them for employment.

Red Flags in Contractors

• Reluctance to provide references or financial information
• Pressure to make an immediate decision
• Unusually low bids compared to others
• Lack of proper licensing or insurance
• Unwillingness to obtain necessary permits

7. Negotiating Payment and Finalizing Terms

Once you have selected a contractor, it is time to negotiate and finalize terms. A written contract protects you and your contractor and ensures the project is completed smoothly. 

Payment Schedules

A well-organized payment plan benefits everyone involved by guaranteeing regular payments and inspiring contractors to meet deadlines and quality benchmarks associated with reaching project milestones.

Potential Changes/Disputes

Embracing change is a natural part of most projects, and preparing for it can help avoid miscommunications or disagreements between you and your contractor. It's important to clearly define the steps for requesting and approving changes to the project and addressing any unforeseen issues. Additionally, outlining the process for resolving disputes and documenting any changes or solutions will contribute to a smoother project experience.

8. Communication With Contractor

Maintaining open and transparent communication with your contractor is crucial to avoid misunderstandings and ensure a seamless project experience. It's essential for everyone involved to be aligned.

Consider setting up a regular communication cadence with your contractor, such as weekly check-ins, phone calls, or emails, to stay updated on the project's development and promptly tackle any issues that may arise. Clearly express your preferred mode of communication and swiftly address your contractor's inquiries or decision requests to prevent any delays.

Additionally, guidelines for communicating emergencies or essential updates and changes should be established. Your proactive approach will help foster a positive and productive working relationship.

9. Legal Considerations

Understanding the legal aspects of hiring a contractor can protect you from potential issues and ensure a smoother project experience for both parties. Below are some legal considerations you should understand. 

Building Permits/Inspections

Building permits and inspections ensure that your project meets local building codes and safety standards. A good contractor should be familiar with the permitting process and handle the necessary paperwork. 

Discuss who will obtain permits and schedule inspections during the planning phase. Regular inspections throughout the project can help catch and address any issues early on, making sure the work meets all required standards. 

Contractor Insurance Requirements

Ensuring proper insurance coverage is essential for your peace of mind. Workers' compensation provides protection in case of any injuries or accidents on your property during the project, relieving you of any responsibility.

Additionally, liability insurance safeguards against any property damage or accidents related to the contractor's work. It's important to kindly request and verify that your contractor has sufficient insurance coverage, including both liability insurance and workers' comp.

Some homeowners opt to include their contractor as an additional insured party on their homeowners' policy for the duration of the project. Still, it's advisable to have a thoughtful discussion with your agent beforehand.

Lien Releases

Lien releases safeguard you from potential claims against your project in case the contractor is unable to compensate subcontractors or suppliers. They are designed to ensure that you won't be held accountable for any outstanding bills linked to your project.

It's crucial to ensure that the contract clearly specifies when lien releases must be provided. This should be outlined as a requirement for payment for that specific phase of the project.

10. Hire Local

Hiring locally has many benefits. By supporting businesses in your community, you not only contribute to the local economy but also have the opportunity to save on travel costs. Moreover, arranging inspections, obtaining estimates, and addressing any issues becomes more efficient and flexible. 

Engaging with a local contractor enables you to have direct, in-person communication, which is often more dependable and supportive than virtual interaction. Furthermore, local contractors may have established credibility within the community, providing you with more reliable feedback from fellow locals. 

Should you opt for a general contractor, they are likely to have established connections with subcontractors in the vicinity, ensuring that top-notch professionals execute your project. Embracing local hiring enhances your project and fosters a stronger sense of community support.

Methodology

We used information from different sources and our data to create this guide on professional tips for hiring a contractor. We combined various data sets to help you learn more about them.

• FEMA
• QuickenLoans
• Harvard Business Review
• National Association of Realtors

The following are a few sources we used to gather most of our information about professional tips for hiring a contractor. 

FAQS

How do you hire a local contractor?

When you are considering hiring a local contractor, some things to keep in mind are getting multiple estimates, checking past work, taking your time in the decision, checking insurance, getting everything in writing, and not paying upfront. 

What should I look for in a contract with a contractor?

A contract should include everything you and your licensed contractor agree upon. It should specify the work to be done, the price and payment schedule, who will obtain the necessary building permits, and the timeline for completion. It must also identify the contractor and their license number.

What are the disadvantages of hiring a contractor?

One of the main disadvantages of hiring a contractor is having less control over the workers. If you interfere too much with their work, you risk issues such as payroll and insurance. Once you hire a professional, stepping back and letting them do their job is essential.

Professional Tips For Hiring a Contractor - The Bottom Line

These helpful tips will empower you to select the ideal contractor for your project, bringing your home renovation dreams to life. It's essential to conduct thorough research on potential candidates, ask pertinent questions, and trust your instincts. Establishing a well-drafted contract, maintaining open communication, and fostering mutual respect between you and your contractor will set the stage for a successful renovation experience.

Out of the 1.5 million members of the National Association of Realtors, approximately 87% are considered independent contractors, playing a vital role in the real estate industry, benefiting homeowners nationwide, and contributing to economic growth.

NAR is committed to supporting contractors and homeowners. Hence, gaining insights into professional tips before hiring a contractor is crucial to ensuring that both parties receive fair treatment without unnecessary delays or expenses.

If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.