Choosing A Home Improvement Contractor

So, you've decided to do some home improvements and you've arranged for a home improvement loan. Now it's time to select a home improvement contractor. Planning and executing a home improvement project can be stressful and it can really become a nightmare if you fail to thoroughly check-out a contractor before beginning the project.

1. Check With Friends, Family & Work Associates. If someone you know has had a similar project, ask them how satisfied they were with that contractor's performance and honesty. If you don't find a recommendation from that group, it's time to check yellow pages or search the web for potential candidates.

2. Visit Contractor Websites. You can find out a great deal about the quality and professionalism of a contractor by visiting its website. Larger, more established contractors should have website and although not conclusive by itself, if the website is well-produced, clear and concise, the firm conveys a degree of expert qualifications. Look for testimonials and photos of completed projects.

3. Check The BBB. Before interviewing a prospective remodeling contractor, check its reputation with your local Better Business Bureau and even your state's registrar of contractors for any unresolved complaints.

4. Interview Multiple Contractors. Before soliciting project estimates, interview possible candidates to get a "feeling of trust and confidence". If you don't feel comfortable, strike that contractor from the list and proceed to the next one. Ask for references and follow up accordingly. If possible, personally check completed projects for quality of workmanship.

5. Verify Licenses and Required Coverages. Verify that the potential contractors are licensed in your state. Make sure the contractors have workman's compensation insurance currently in force and they have liability insurance coverage. Otherwise, you could be responsible for employee accidents and any damage that could be done to a third-party.

6. Prepare A Bid Package. Solicit multiple bid proposals and be specific about requirements, expectations and completion schedule. Select the most cost effective proposal which is not necessarily low bid. Quality of materials used and methods used are equally important.

7. Require A Written Contract. Once you've selected the desired proposal, require a written contract. In case of future conflict, it's best to rely on written expectations and not verbal commitments to a completed project. The contract should list brand names of products that will be used and exactly what the contractor will be performing. Read the contract carefully and address any issues before signing any agreements. Make sure any guarantees are outlined and defined. Request copies of liability insurance, contractor licenses and verification that workman's compensation insurance is currently in force.

8. Payment Schedules Defined In Contract. Never pay the entire bid amount upfront.. Down payment deposits are normal, but always pay progressively as each phase is completed and resultant quality is verified consistent with the contract. Never pay cash. Tangible forms of payment such as checks, draw payments issued by a lender or credit cards establish records in case of future disputes.

9. Get Lien Releases. In most states, product suppliers and subcontractors can place liens on your home if your contractor does not pay its providers even though you may not know who those providers are. Before making a progressive payment, ask for copies of lien releases from any providers used by your contractor to complete a particular phase. If your contractor "bails" from the project, goes out of business or does not pay their product and service providers, the homeowner could very well be responsible for those accrued debts. So never release payment until you receive copies of relevant lien releases.

If you haven't already arranged for financing you home imprpvements, click here for a list of Mortgage Refinance and Equity Loan Lenders in your state.