- Get Recommendations from:
- Friends and family.
- The National Association of the Remodeling Industry (NARI) for a list of members in your area.
- Building inspectors for any knowledge about specific contractors
- Interview contractors by phone and then in person for:
- Financial references from suppliers or banks.
- List of previous clients.
- Length of time they’ve worked with their subcontractors.
- Fact-Find: Call former clients and visit job sites. Call your state’s consumer protection agency and your local Better Business Bureau to investigate complaints.
- Make Plans, Get Bids: Compare bids and study costs for labor, material, profit margins and expenses. (Materials usually make up 40% of the total while the rest covers overhead and the profit margin — usually 15% to 20%.)
- Set a Payment Schedule: Work out a payment schedule in advance.
- Don’t Decide by Price Alone: Beyond technical skill, the single most important factor when choosing a contractor is communication and if you’re comfortable with the person.
- Get it Right in Writing: Create a contract listing every step of the project: proof of liability insurance, payment schedule, workers’ compensation payments, a start and projected completion date, specific materials and products used, and a requirement that the contractor obtain lien releases (which protect you if he doesn’t pay his bills) from all subcontractors and suppliers.
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