How to hire a contractor

While most home contractors out there are legit and do quality work, the rogues gallery of bogus builders, careless carpenters, pitiful plumbers, and the like is a vast one.

Some of your friends and neighbors likely can relate cautionary tales of purloining pros, and perhaps you’ve even been the victim of a contractor whose work you cursed.

I’m sure you don’t want to revisit the miserable days when your project got derailed by an incompetent contractor, but “The Pros and Cons,” in the January 2008 issue of Angie’s List magazine, is a worthwhile read. The article (scroll to pages 12-21) features a nationwide who’s who of the top contractors and their sketchy counterparts.

The story won’t make up for any nightmares you’ve endured, but it might reassure you that genuine pros are out there. (Thousands of people use Angie’s List each month to report their customer experience in 250 categories, including home improvement and handymen. A membership fee gets you access to first-hand accounts from members and A to F ratings in several areas, including price, quality, punctuality and professionalism.)

To avoid hiring the contractor from hell, follow our advice:

Plan for success. Get three bids to gauge the going rate for work. But don't jump at the lowest bid; our surveys have shown that people who hired the lowest bidder generally got poorer work.

Get an estimate. It should list product, material, and labor costs and a timetable. Material and product allowances should give prices and quantities. Compare services and prices before making a final decision.

Choose pros you know. Our surveys have indicated that people who hire contractors they had worked with before were happier and had fewer time and cost overruns than those who hired someone new. While readers who hired pros recommended by a friend or neighbor were more satisfied than those who hired strangers, they faced as many delays and extra costs.

Get references from recent and older jobs. Reputable contractors will be happy to provide names and contact information for satisfied customers. Then check the work to see how it’s holding up.

Look for proper licensing and insurance. Make sure the contractor is licensed to do business in your state and that he has proper general liability and workers-compensation insurance. Check with your local government for permit requirements and confirm with the contractor who is responsible for paying for permits. Also visit the Contractor's License Reference Site to learn about licensing requirements in your state and to find out if a contractor is licensed.

Check the Better Business Bureau for filed complaints. Also contact your state's attorney general's office. Look for contact information in your state here. (Should you encounter a problem or fraud later on, report problems or fraud to your state attorney general.)

Do the hiring yourself. Your project is more likely to stay within budget and on time if you hire pros yourself than leaving the hiring and supervising to a general contractor.

Obtain a contract. A written contract will specify what will be done to complete the job, associated costs, and the payment schedule. Never sign a blank contract or one with blank spaces.

Stick with the plans. Making changes to plans after work begins could lead to cost overruns and delays.

Pay by check. Write out the check to the contracting company rather than to an individual. A reasonable down payment is 30 percent of the total project cost to be paid upon initial delivery of materials.

Make final payments only when the work is completed to your satisfaction. A reputable contractor will not threaten you or pressure you to sign documents if the job is not finished properly.—Steven H. Saltzman

Comments

[Dave]

Angie's List is good, but it's expensive. Many local businesses I've gone to say they can't afford to join. Costs them $600-700 dollars to join just to view their own reports. Personal memberships have doubled in price in 7 years, much faster than anyone I know's income. It's a great resource but a little pricey.

[Rob]

The best way to get a good contractor is by referral and looking at the work he or she has done. As a long time contractor, I can tell you that all of these lists, including the Better Business Bureau, charge a ton of money. In some ways, this actually promotes high pricing by unscrupulous contractors. I've never had a complaint in 15 years and I am not a BBB member or an Angies list member. Things are slow now and I am the only contractor I know of locally with work booked for the future.
These lists are not all they are cracked up to be.

[Nancy]

We got a free year with Angie's list. I tried to do research before they changed their mind.

Got a taper and spackler duo from Angie's List. These 2 said they weren't part of Angie's list but someone listed them and they've been getting calls from all over.

They were good but I didn't like the way they sanded without blocking off the rest of the house.

[Tim]

Angie's list and other Referral web sites are only good for getting contractors to actually call you back. You are crazy if you rely on THEIR screening of the contractor you hire. Homeowners have to check out the credentials themselves AND referrals are NOT reliable either! Every bad contractor CAN do a good job every once in a while - and it may have been your neighbor! There are good resources on the web. Informational BLOGS like contractorcons.blogspot.com are good advice columns to review before making any decisions.

[contract]

to hire always check this A general contractor usually is responsible for the supplying of all material, labor, equipment, (engineering vehicles and tools) and services necessary for the construction of the project. To do this it is common for the general contractor to subcontract part of the work to other persons and companies that specialize in these types of work

[chip]

Does Angies list take revenue from from advertisers? What percentage is that, we wont know until it thiis a public company. By the way the story of how the company was founded is that, just a story. Or so I've been told.

[Bron]

I looked in to Angie's List and I was not impressed. They're high profile ads don't impress me either. I think you'll be much better off doing your own leg work and asking around. If you have friends in one of the trades, ask them. Often an Electrician will know a good plumber and vice-versa.

I also have had mixed success with the BBB, both as a businessman and a consumer.