Five Things You Should Not Do Before Hiring a Contractor

    1. Lowest Price - Don’t choose your contractor just because he is the lowest priced. A legitimate contractor has many expenses to keep his company going. Contractors need to carry liability insurance, worker’s comp. insurance and health insurance for employees.  They have several operating expenses and pay city, state and federal taxes. With all these expenses it will become apparent that they will have to charge enough to help cover their costs. Even though the contractor you hire may not be the lowest priced, you can rest assured you are getting a contractor that is doing things the right way and that is what you can expect out of the job they do for you.

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    2. Down Payment - Never give a contractor a large down payment! In most cases a down payment of 5% to 20% down is all that is needed for a contractor to get the job started. If someone is asking for a third or half down, you better be cautious. Unless the contractor has ordered something special that you requested and the company requires a large down payment, there should be no reason for a large amount. If the contractor does ask for that much, make sure you get it in writing as to where the money is going.

    3. Credit - Don’t give a contractor all the money up front for the materials needed for the entire job. If a contractor does not have accounts set up with suppliers, there is usually a reason. One reason could be that he or she is just starting out and has not established credit yet, or another might be that the contractor has some credit problems and if he or she does, that could spell trouble for you.

    4. Get It In Writing - Never hire a contractor unless you get a legible cost break down or estimate and a signed contract. I can not stress this enough. Make sure everything you want is spelled out exactly the way you agreed. A verbal agreement is not satisfactory. This will protect you and it will also protect the contractor. It is the only way you should do business with a contractor.

    5. Recommendations - Don’t hire a contractor just because the company was recommended by a friend or neighbor. Although this could be a good thing that someone you know has used the contractor and had good results, make sure you check with others who have used the company as well. Follow the guidelines in the last post, “Ten Things You Should Do Before Hiring a Contractor.”

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