The interview
Here are some questions to ask.
How long have you been in business? Find a well-established company and check with consumer protection officials. They can let you know if there are unresolved consumer complaints on file. One word of caution: a history of zero complaints against a particular contractor may be that problems exist but have not yet been reported, or that the contractor is doing business under several different names or perhaps too little business being done. Why do you need references.
1. Are you licensed and registered with the state?
Only 36 states have any type of licensing and registration statutes that affect contractors, remodelers, and / or specialty contractors. Check with your local building department or consumer protection agency for licensing requirements. If your state has licensing laws, ask to see the contractor’s license. Make sure it’s up to date.
2. How many projects like mine have you done in the last year?
Request a list. This will help you determine how familiar the contractor is with your type of project.
Will my project require a permit? A competent contractor will obtain all necessary permits before starting work on your project. Be suspicious if the contractor asks you to obtain permits. It could mean that the contractor is not licensed or registered, as required by your state or locality.
Get references? The contractor should be able to give you the names, addresses, and phone numbers of at least three clients who have projects similar to yours.
5. Will you use subcontractors on this project?
Make sure they have current licenses and insurance coverage and get a copy.
6. A “mechanical link”:
A lien may be placed on your home if your contractor does not pay your project’s subcontractors and suppliers. That means subcontractors and vendors could go to court to force you to sell your home to satisfy unpaid bills for your project. Protect yourself by asking the contractor, and all subcontractors and suppliers, for a lien release or lien waiver.
7. What type of insurance do you have?
Contractors must have personal liability, workers’ compensation, and property damage coverage. Request copies of insurance certificates and make sure they are up to date. Avoid doing business with contractors who do not have adequate insurance. Otherwise, you will be responsible for any injuries and damages that occur during the project.
Tips to avoid being scammed
- Be wary of door-to-door requests, especially when they want to start work right away;
- Note that your contractor must notify you of your right to cancel within three days of signing the contract;
- Be a good neighbor and report any suspicious home improvement activity if your neighbor is elderly or vulnerable.