Selecting a Contractor
If an employee is selling and needs some repair work done around the house. Or, perhaps the employee purchased and wants to remodel the kitchen or bath.
Choosing the right contractor for the job — someone who is ethical, dependable, capable, and affordable — is the first and most important step. Here are some tips for choosing a contractor. Follow some or all of these depending on what kind of work is needed — repair, maintenance, or full-blown remodeling.
Get Recommendations
Ask friends, family, co-workers, and neighbors to recommend contractors they have used. Some neighborhood associations maintain a list of contractors and repair services that members recommend.
Check with the appropriate local trade organization or association for builders, plumbers, electricians, remodelers, or other trades for members who perform the work. For example, in Austin, the Home Builders Association Greater Austin and the Central Texas Chapter of the National Association of the Remodeling Industry, while in Galveston, the Galveston County Home Builder's Association. Check the target community for associations.
The telephone yellow pages may give a starting point for finding a reputable contractor, but it can't tell the quality of their work.
Do Your Homework
Check out the contractor with the Better Business Bureau (BBB Serving Central Texas, BBB of Metro Houston or local/state equivalent) or the consumer protection division of the Texas Attorney General's office. No record of complaints doesn't mean there haven't been any problems, just that they haven't been reported or that the contractor is doing business under several names.
Run an online search of the contractor’s name in several search engines. If the contractor has had complaints or legal judgments in the past, it’s likely those will appear in online press clippings.
Check References
Ask the contractor for customer references, particularly those customers who had a similar job done. Ask the references the following questions:
- Were you satisfied?
- Was the job completed on time?
- Were you kept informed about the job status and any problems?
- Were there any unexpected costs? Why and for what?
- Did the workers show up on time? Did they clean up when finished?
- Would you recommend the contractor?
- Would you use them again?
- If it is a remodeling job, can I come see the work?
Check Credentials
Ask the contractor for copies of current licenses and insurance certificates. Most states require electrical and plumbing contractors to be licensed. All but 14 states require other contractors to be licensed. The contractor should carry personal liability, workers' compensation, and property damage insurance.
Compare Estimates
Get written estimates from more than one contractor. Make sure that all of the estimates are based on the same specifications. If a contractor wants to deviate from the specifications, have them write those changes up as options.
Think About Financing
Decide how payment will be made for the job. The bigger the job, the more options. Is a loan needed? If so, do you find financing or work with the contractor to arrange financing? Will payment be made by check or credit card? Members Home Advisor has options for financing home improvements. Avoid paying cash. Never pay the complete fee upfront before work has begun.
- If a down payment is necessary, pay the smallest amount possible.
- Make payments during the project contingent on the completion of specific tasks.
- Retain a percentage of the total job costs and only make the final payment after you are satisfied with the completed work.
Get Everything In Writing
Get a written contract. It should spell out who is performing the work, what work is being done, where the work is being done, the start date and completion date, and what it will cost. The contract should be clear, concise, and complete. Get all guarantees, warranties, and promises in writing.
Avoiding Home Repair Rip-Offs and Scams
Here are some red flags to watch for. Say "no thanks" to any person or company who:
- Solicits business door-to-door. A reputable business doesn't need to go door-to-door
- Wants payment in cash
- Wants the entire payment up front
- Offers discounts for finding other customers
- Just happens to have "material left over from a previous job." Paving the driveway with asphalt is a favorite
- Requests that the consumer get the necessary permits. This could mean that the contractor is not licensed or registered as required
- Is not listed in the local telephone directory
- Needs an answer immediately. Don't sign a contract until it has been reviewed thoroughly
- Offers exceptionally long guarantees — or no guarantees
- Wants the consumer to borrow money from a lender they know. This request usually signals a home improvement loan scam
For further review
To test home repair IQ and expand knowledge, take these quizzes from the Federal Trade Commission (FTC).
- Test Your Skills at Hiring a Home Improvement Contractor
- Test Your Skills at Avoiding a Home Repair Nightmare
For more detailed information, read the FTC publication Home Sweet Home Improvement and from the Texas Attorney General Watch out for these schemes.
Also, check out the Better Business Bureau Warns Against Itinerant Repair Companies; Offers Tips on Finding Reputable Firms especially after violent storms or disasters.
