How to Find a Quality Contractor for Your Home-Improvement Project

You've likely heard stories about -- or have been unfortunate enough to actually experience -- a bad contractor or service company working on your most prized possession: your home. To avoid this happening, do a little research; the time spent on it could save a lot of stress (and thousands of dollars). Does this Spark an idea?

Things You'll Need

• Phone
• Internet
• Home improvement file

Instructions

1. Get at least three bids per project -- more if it's a capital expense like a home addition. Find out if the person bidding is also going to be on the job regularly, instead of sending his assistant every day. Many projects go awry between the sale and installation because of communication errors between a contractor and his staff.

2. Research your contractor. Investigate each company even if you like the initial meeting and have several referrals. Call and speak with the referrals given. Call the Better Business Bureau to see if any complaints have been lodged. (Be sure to check variations and alternate spellings of the name.) Check whether they offer addresses for projects they've completed; if you can drive by to see their work, do it, to see how the work holds up over time. Make sure their insurance is enough to cover any major mistakes or mishaps. Call and validate the insurance and state or city contractor licenses. This will eliminate the chance that a traveling contractor has made false documentation.

3. Finalize the contract. Read the bid and make sure it is binding; some bids are not considered contracts. If not, take the contract to a lawyer or accountant as soon as you get it, to review and clarify any questions. Make any changes needed prior to signing the contract, and have both parties initial those changes. Sign a copy and get one signed for your files. Keep all your receipts even if you do not file itemized taxes. Some state and federal programs now allow for specialized improvement rebates and tax deductions.

Tips & Warnings

• Get referrals about a company from multiple sources.

• Investigate a contractor before hiring.

• Rate your experiences so others can use you as a referral.

• Be prepared with a list prior to emergencies

• Never deal in cash. A contractor who only accepts cash is almost always a red flag.