Best Practices for Hiring a Contractor – Avoid Disappointment on Your Next Home Improvement Project

By Kristen Beckman

Spring is a natural time to begin thinking about home improvement projects, from adding or upgrading the systems and structures of your house to finishing a basement or re-doing a kitchen or bath. While these projects can be fun and exciting to plan, they are often expensive and can be time consuming, so it’s important to choose the right contractor for your project to ensure it is done right and turns out the way you want it.

Choosing a contractor can be overwhelming, and when you aren’t an expert, it can be hard to know how to choose the right professional for the job. As such, it’s easy for homeowners to make mistakes along the way and for misunderstandings to lead to disappointments.

Karla Ferguson, Vice President of J&K Roofing, which provides roof inspection, roof installation and repairs, said three primary mistakes homeowners make when choosing a contractor for a project are shopping only on price, not checking local references and qualifications, and not getting expert insight to understand the scope of the project. For roofing projects, a professional roofer should provide a free inspection and an honest assessment of the required work.

“You don’t always need a new roof,” Ferguson said.

Ferguson advises homeowners to ask neighbors to recommend contractors they have worked with, read company reviews, and look companies up on the Better Business Bureau site when evaluating potential contractors. Don’t feel pressured to sign paperwork, she said. And when it comes to assessments of damage after a hail storm, Ferguson recommends hiring local contractors vs. out-of-town storm chasers who are not connected to local supply, aware of local regulations or available for continued follow-through on warranties and maintenance.

Adam Torrez, owner of Unique Heating and Air Conditioning Inc. - which provides heating, air conditioning, furnaces, water heaters, humidifiers, and other HVAC-related services - said homeowners should ensure they use a licensed contractor for work on their home and get at least three quotes for the project. Torrez said homeowners can help ensure the project progresses according to plan by ensuring the contractor and workers have adequate room to work, doing a walk through with the contractor to inspect work completed, and asking questions.

Tim Pate, Chief Building Official for the City and County of Broomfield shared four pieces of advice he tells homeowners about choosing a contractor. In addition to getting at least three bids from reputable contractors for a project, he also says homeowners should ask for, and more importantly, check references. He said homeowners and contractors should also draw up a good contract that spells out not only the scope of work but also the timing involved. And finally, Pate says homeowners should ensure contractors pull the necessary permits and view them before allowing the contractor to begin work on the project.

The Federal Trade Commission maintains a webpage with a variety of advice for homeowners when choosing a contractor, including asking how long a contractor has been in business, asking the contractor whether the project will require permits, finding out what type of insurance they carry, and whether they will be using subcontractors on the job.

In addition, the FTC advises homeowners not to pay cash for projects. Use check or credit card for smaller projects or arrange financing if necessary for larger projects. Try to limit your downpayment and negotiate payments contingent upon completion

of defined amounts of work, and don’t make a final payment or sign an affidavit of final release until you are satisfied with the work, the FTC said.

A written contract that includes contact information, estimated timing, payment terms, permit obligations, materials, warranties, and exclusions can help protect both homeowner and contractor, the commission said.

Signs of a Home Improvement Scam

Be aware of the following red flags that could signal a home improvement scam. If a potential contractor:

• Knocks on your door for business or offers you discounts for finding other customers.

• Claims he just happens to have materials leftover from another job.

• Pressures you for an immediate decision.

• Only accepts cash, asks for full payment up front, or suggests you borrow money from a lender he knows.

• Asks you to get the required building permits.

• Tells you the job will be a ‘demonstration’ or offers a lifetime warranty or long-term guarantee.

• Doesn’t list a business number in the local telephone directory.

Source: Federal Trade Commission