Mistakes to Avoid When Hiring a Contractor

Hiring a contractor for a home improvement project may seem straightforward, but it actually involves several important considerations. Whether you find someone online, go with a referral, or work with a friend who has expertise, it’s essential to avoid the costly mistakes listed below.

1. Not doing your research

Just because you found a general contractor who seems nice and knowledgeable doesn’t mean they’re the best fit. While it can be tempting to go with the first one you like, conducting thorough research can make a significant difference. Check out the Better Business Bureau Profiles, which include contractor reviews, star ratings, complaints, photos, and videos. Additionally, you’ll be able to see how many years the business has been in operation.

We suggest comparing the services, quotes, qualifications, skills, reputations, and communication styles of your top contractors. If you’re planning to do a major home renovation, it’s a good idea to consult with at least five general contractors in person. While each meeting takes time, it gives you a chance to learn about each one, ask questions, and realize what you want and don’t want in a contractor. Next, get bids from at least three of those five in order to get a sense of what the project will cost.

2. Making assumptions

Sometimes people assume that all contractors are licensed and insured. That’s actually not the case. There are many who aren’t. Before you sign a thing, make sure your general contractor is licensed and insured. Although hiring someone who isn’t may save you money, if something goes wrong, any damage or misstep becomes your responsibility as the homeowner. You could be held liable or sued for an accident on the job site. As the Better Business Bureau explains, across different states and regions, “general contractors are required to maintain certain licenses, permits and certifications. For some specialized trades, this can extend to certifications to handle hazardous materials like mold, asbestos or waste products. Anyone you work with should be up to date on their insurance and certifications and secure the necessary work permits before hammers fly.”

You also don’t want to assume that your home improvement project is the only one that your contractor will be working on. Ask how many projects they will be working on at the same time as yours. If they have many simultaneous projects, their team needs to be big enough to handle it. Otherwise, your project may get delayed or put on the back burner.

3. Not asking the right questions

It’s important to ask what the contractor’s role will specifically be during this project. This will give you more insight into how you’ll work with them. Perhaps they will be focused on budgeting or scheduling. Or, they may be overseeing day-to-day tasks. Oftentimes, when someone manages the sub-contractors who are on the job, the project timeline tends to stay on schedule. Asking about their role helps you get a sense of whether or not it will be well organized with clear points of contact. You should be able to ask questions at any point, and you’ll want to know that they’re doing everything possible to ensure everything runs smoothly.

If any subcontractors are needed, ask how much work with be subcontracted. Also, ask for information about the subcontractors.

Asking about the payment schedule is also a good idea. Typically, labor and material costs are fixed. However, there’s usually room to negotiate the payment schedule. If you want to incentivize on-time, quality work, you could propose paying specific percentages of the project at certain completion points.

4. Being unclear about your budget or timeline

If a contractor is telling you they will be done in half the time or for half the cost compared to others, it’s probably too good to be true. And, if you’re unclear about your budget or timeline then that can cause major issues for both parties. If your contractor has worked on a home that’s similar to yours and has done this type of project many times, they should have an accurate timeline and budget. Of course, the timeline and budget can vary with different options and specifications, or if supply issues arise. But it’s important to establish clear estimates and expectations upfront.

5. Not getting referrals or skipping client reviews

Even if you have a good feeling about a contractor and have made sure they are licensed and insured, do your due diligence by asking for client referrals. This will give you a good sense of how they have worked on past projects and what it’s like to work with them. In addition, reading reviews online can also be beneficial. You may see an average number of review stars and stop there. But reading client reviews can give you a better sense of different people’s experiences. The last thing you want is to go into it blindly and then regret your decision.

6. Not thoroughly reviewing your agreement

Even if you’re working with a friend who happens to be a contractor, always have a written agreement. It’s essential on any home remodel. This contract can be referred back to if any questions or misunderstandings come up along the way. Deadlines, scope of work, cost of materials, warranties, payment terms. and more are always listed. When the home improvement project is completed, hold onto your contract. You’ll also want to save any relevant receipts, plans, or paperwork. That way, you can reference them in case there are any disputes or questions down the road.

Be sure to read everything before you sign it and make sure you fully understand it. The contract should state who will obtain any required building permits and who is responsible for the clean up. If your contractor has made any verbal promises, you’ll also want them included in the contract. If it is incomplete, don’t sign it. Also, you’ll want to make sure the contract includes a target completion date. Sure, there’s a good chance the project may be extended, but it’s still helpful to set a goal and put it in writing.