How to Hire a Contractor to Build a Home

Your home is one of your biggest investments, so whether you hire a contractor to do a remodel project or build a new home from the ground up, hire someone who is qualified, experienced and reputable. Never hire the first person who comes along. Take the time to do a careful search to ensure the job gets done right.

Instructions

1. Ask any contractors whom you interview to see a copy of his or her license and proof of liability insurance, which will cover any property damage or injury claims. Doing your homework beforehand is an important part of the process. Find out how long the contractor has been in business.

2. Make certain that the contractor is currently licensed as required by the laws in your state. You will be asked to provide the contractor's name and license number. In most states, the licensing board has checked into the contractor’s background and is satisfied that the contractor has the necessary training and experience. Do the same for any sub-contractors the general contractor may hire.

3. Contact the Better Business Bureau in your area to inquire whether there have been any complaints or if legal actions have been taken against the contractor in the past. You should also check for a history of bad debts or previous bankruptcy.

4. Personally visit sites where the contractor recently has completed work or has a job in progress. While many contractors may voluntarily give you the names of some of their most satisfied customers as references, ask about all jobs completed within the last year. In fact, ask for references dating back 3 years.

5. Read the contract carefully before signing. Make sure that you understand all the terms. The building plans should include everything you want stated in the bid so that the contract can be well written and calls attention to the specific details of what you expect.

6. Get at least 3 estimates before you hire anyone to do the job. It only makes sense to compare multiple bids.

7. Don’t be afraid to ask lots of questions. Credentials are not the only factor to consider. You may be working with this person for months; therefore, you need to establish a good working relationship.

Tips & Warnings

• Many times the best way to find a good contractor is through word-of-mouth. Ask friends, neighbors or relatives who recently have had new construction or remodel projects completed if they would recommend the contractors they hired.

• Even if a contractor asks for a large sum of money up front in order to begin the project, you should negotiate a payment schedule fair to both of you, including the down payment.

• If a work site is messy and disorganized, it may be a sign that the contractor doesn’t do quality work. Sloppy workmanship often leads to problems later on.