10 Questions to Ask When Hiring a Contractor

A project’s level of success is directly tied to its contractor. Hiring the right person is not just about qualifications, but also about matching up schedules, budget and style. The following 10 questions will help you select the best possible candidate while simultaneously laying down a road map of required work and deadlines.

1. Are you licensed and insured? Make sure your contractor has the appropriate licenses and insurance to meet your state’s requirements. He or she should additionally carry general liability and workers’ compensation liability insurance for workers.
2. What is the timeline of this project? Get a clear outline of check points and a projected time for completion. Unexpected problems could very well occur, but an experienced contractor should still be able to give you a well formed timeline. Should an unexpected issue be thrown in the mix (hidden damage or other unexpected problems), you should enter a “time and materials” contract. A “time and materials” document states the labor rate and material markup of anything that might arise unexpectedly. It protects you from a half-finished project or contractor doubling price to resolve those unforeseen issues. Be sure to discuss fees, unexpected fixes and put together a “time and materials” document prior to the start of the project.
3. What’s Your Work routine like? To obtain realistic expectations and help keep your sanity, let your contractor know beforehand if you have a schedule you’d like them to keep and let them know that you’ll be expecting regular progress reports.
4. What’s the bottom line? Request an itemized price estimate from each candidate. Weed out the candidates who are way too cheap (you get what you pay for), negotiate the payment schedule, and determine how any surprise expenses or potential change orders will be factored in.
5. What are some similar projects you’ve worked on? Ask for examples of prior work that prove your contractor has the experience and knowledge to back it up. Ask to see photos to get a true sense of his or her style and quality of work.
6. Who will be at the site and how will it be supervised? What sort of licensing, payroll, liability insurance and workers’ comp does your contractor have for workers? How much time does the contractor intend to spend on-site and who will be supervising during times when he or she isn’t there?
7. Will you offer a guarantee of your work, and if so, what is the guarantee? Hire a contractor who can guarantee against defective materials and workmanship. Think of it as insurance.
8. What is your payment schedule and how much do you charge? Work out plans and specifications to determine an estimate. Establish a pay-as-you-go system, issuing partial payments throughout the process and scheduling payments for new construction (also called draws) as a certain percentage of the total cost when specific stages of work are completed. Avoid any contractors who want full payment before starting the job.
9. How do you deal with call backs? Get all of the contact information you can by writing down the contractor’s business address, cell phone, telephone, email address, business license number and truck license plate. Make sure he or she is willing to return to the site and fix any building-related problems that may arise, even after the job’s finished.
10. Can I speak with some of your former clients? Check in with past customers to ensure the contractor is as professional and easy to work with as he or she appears. Ask if any legal disputes have occurred from a previous job. In truth, a prior legal dispute isn’t necessarily a red flag. On the other hand, a contractor that isn’t honest when asked this question is most likely bad news.