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.
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.”
If you have a specific question, Just Ask Rick!