I’ve been working on some new resources for homeowners, and have been thinking about a basic checklist for homeowners to follow during the process.

Contractor Hiring Process Checklist

1. Receive at least three estimates on your project
2. Ask each contractor the same questions, and give them the same project parameters to get the most accurate and comparable estimates
3. Verify professional licenses
4. Ask for and check references
5. Do a background check through the Better Business Bureau, or another agency.
6. Verify Insurance and Bonding
7. Make sure you are given a contract, and make sure all parties agree to and sign it.

To me these are the essential parts of the hiring process for homeowners. Not doing these things can mean disastrous results and a frustrating process. Everyone has heard horror stories about contractor fraud, and to avoid it, it’s very important for homeowners to take the time to consider a checklist like this.

Can anyone think of anything I’m missing? Or is this a good bare basics summary of essentials that all homeowners need to consider?

I recently came across this quote in the New York Times Home & Garden section from a veteran contractor:

 “A contractor is like a cold: you’re not going to get rid of it.”

That is sage advice from someone who has spent their entire career in the remodeling industry.  You don’t want to get stuck with a contractor you’re not happy with for the length of a major remodeling project.

Almost everyone has heard stories about contractors who did less than satisfactory jobs, left giant messes, or were generally frustrating to work with.

At worst, you may have heard of homeowners who were conned into giving large sums of money to a contractor only to have them disappear, or of contractors who started on a project, made a mess ripping things apart, but then never showed up to the job site again.

While these stories may scare you, instead of fearing the contractor hiring process, just make sure you know what you need to do to end up with a contractor you’ll love.

Essential parts of the contractor hiring process are:  

1. Receive Multiple Estimates: Getting at least three estimates will enable you to compare prices from different contractors. Take the time to talk with each contractor and get a feel for which one you will be most comfortable working with and having in your home. A sign of a good contractor is one who is on time, communicates effectively with you, and presents himself professionally.

2. Get a Contract: Don’t do anything with a contractor unless you have it in writing. Any professional contractor will create a contract for both parties to agree to before starting work. This protects both homeowners, and the contractor, and ensures that the project is done to your exact specifications.

3. Check References: You should check the professional references of any contractor you are thinking of hiring. You can ask to see past work, as well as ask for prior client contact information. When talking to former clients, have a list of questions to ask them, such as “How close to the project timeline was your project completed?” and “Did the contractor clean up the job site after completion?” Former clients can give great insight into a contractor’s work.

4. Check License and Insurance Information: Make sure to check the that the remodeling contractor you choose is licensed, bonded, and insured. Proper licensing and insurance doesn’t guarantee a job will be completed to your satisfaction, but it does give you leverage with your local consumer affairs department who can investigate any problems on your behalf. To obtain a license, a remodeling contractor must undergo a background check, pass a written test and pay for the license. They should be able to provide copies of their licenses, and you can verify these licenses with the proper state agencies.

Taking the time to go through each of these steps, and simply using your instinct and common sense, will ensure that you get a contractor who does the job right.

Here are some helpful links to help you hire the right contractor:

License and Background Checks

Contractor State License Board

Articles on Working with Contractors

When you plan a major remodeling project, first things first: you have to hire a contractor. Of course, you’ll want to make sure that you are hiring the best person for the job. You’ll want to consider a contractor’s past work, your rapport with the person, and perhaps most importantly, the price they quote you.

Many homeowners are baffled when it comes to looking at a quote. They see lots of numbers, and of course, the final price. No one wants to pay too much. One common cost on a quote that homeowners often grapple with is the contractor markup. This markup is the amount over cost that a contractor charges. It’s vital for contractors, since this is where they earn their profit, but what kind of markup is appropriate?

The answer? The honest truth is that there is no industry standard for pricing a remodeling project. Contractors will create margins that suit them, as well as what the industry will bear. 

This can all sound rather negative from the consumer’s point of view, but it doesn’t mean you lose out. If you don’t like the contractor’s price, your choice is simple: Don’t hire the contractor! It’s always suggested to get at least three quotes from contractors, so if you feel one is too high, maybe one of the other two will be more in your ballpark. If you are working within a certain budget, make sure to stick to that budget. Choose a contractor who quotes you within your budget, and who you think will be able to do the best job for you.

Just how much a contractor will charge is compromised of many components, but you can expect at least 20 percent. Obviously it might be more if your contractor has a great reputation for his work and is in great demand by everyone in your neighborhood. The theory of supply and demand isn’t lost on the remodeling industry. Sometimes if you want the best, you need to be prepared to pay a little bit more.

Contractors don’t use markups as a way to make an easy penny off homeowners. Instead a markup is where contractors are able to truly make a living from their work. So, when you’re looking at your quote, don’t assume you’re being cheated. Instead, take your time to look over your quote and decide if you’re truly looking at a fair price.