Choosing a Contractor

After experiencing a home break-in this summer, Atlanta residents Jamilia and Charles Smith decided to look for a contractor to repair the damages. During the invasion, a burglar damaged the alarm system, broke the rear door of their home, and tore their flat-screen televisions from the walls in the living room and master suite, causing extensive damage to the walls. But they were soon in for another surprise.

The couple asked family and friends to refer contractors who had done work for them. They also researched how long each contractor had been in business, what kinds of jobs they had completed, and whether they worked alone or with a team. Charles, 41, and Jamilia, 35, received a strong referral from a friend and decided to interview the contractor. He told the Smiths he worked with a team and could repair the damages.

Much to their dismay, the Smiths soon discovered that the contractor worked alone, not with a team. Furthermore, he did a poor job on the painting and worked on multiple projects at once rather than completing one task before beginning another.  The Smiths had no other choice but to fire him after having already paid him $900. In hindsight, Jamilia believes that she and her husband should have spoken to more than one reference and visited a few of

his previous work sites. Charles and Jamilia replaced the initial contractor with four different remodelers to do different projects. After the initial experience, they decided to hire specialists for each individual project——they hired someone to replace the door, someone to paint and do sheet rock, a contractor for electrical work and lighting, and someone for the wiring and mounting of the flat-screen televisions. The final cost was $4,000. Jamilia advises homeowners to go with their instincts. She also suggests, “If the contractor is doing multiple projects in your home, make sure they complete one project before they move on to the next.” Charles also adds that it’s important to discuss timeframes for completing the work upfront. “We were at his whim as to how fast or slow he’d work, which was a huge inconvenience,” he says.

If you’re planning to hire a contractor to do work in your home, make sure you follow these tips:

Start with your personal network. Ask your family and friends if they can refer you to anyone. Talk to neighbors who renovated their home. Once you narrow down your list, consult at least three contractors before making your final decision. “Free estimates are a good way to [broaden] your estimate,” says Lee Wallender, home renovations expert for About.com. “If you only talk to two contractors, one estimate will seem high and the other will seem low. If you get three, then it’s more precise. If you get five, it’s even more precise.”

Inquire about work history. Find out how long a contractor has been in business. “Ask how long they’ve been in the area,” suggests Scott Plemmons, senior vice president of specialty sales at Lowe’s home improvement store. If a contractor has performed poorly in one city or town, they may relocate to avoid a negative reputation.

Ask for referrals. “Do they freely offer references? Do they offer references before you even ask? Pay attention to their level of openness,” says Wallender. Keep in mind that no one is going to give you an unfavorable referral. The best way to circumvent any bias is to ask, “What are two things that you did not like about this contractor’s work or your dealings with him? Did the team stay on schedule?” Even if you receive nothing but positive feedback, you should still contact the Better Business Bureau (www.bbb.org) or Ripoff Report (www.ripoffreport.com) to see if the company has had any problems, advises Wallender.

Confirm credentials. Various organizations can help you determine the validity of a contractor’s credentials. Your state’s licensing board can tell you whether or not a company has a legitimate license. Another option is to check online at the Contractor’s License Reference Site (www.contractors-license.org

), suggests Wallender. This site allows you to look up contractors across the nation. Your state consumer protection agency is another reliable source.

Also verify whether or not a contractor has insurance. The company should have liability insurance, which covers damages to you and your home. It also extends to vehicle coverage. Workers’ compensation provides medical coverage in case a contractor’s employee is injured at your home. In addition, make sure the company has a surety bond, which may be a condition of licensing.

Evaluate skill level. While it’s important to ensure that contractors are licensed, understand that “a license does not guarantee quality, it just means they fulfilled some minimum requirements set down by some municipality,” adds Wallender. It’s important to inquire about additional certifications.

Have open, two-way communication. Don’t just ask questions; be prepared

to give information. Clearly explain your goals and expectations. Identify the services that you’re looking for and ask if they have previously completed projects similar to what you want. You may find that you need to hire someone who specializes in the area of renovation that you’re seeking. Also ask if they have a portfolio that you can review and if you can visit homes that they have remodeled. “Remodeling is a service, not a product, and you have to be able to get along with the people providing that service,” says Greg Miedema, president of Dakota Builders Inc., a home design and remodeling company in Tucson, Arizona. Ask when they are available and how long the project will take to complete. “Some contractors have a very long lead time,” says Wallender. “Some may not be able to get to you for a year or more than that, particularly if all they do is big jobs like additions.”

Get it in writing. “Create a written contract,” says Plemmons. “It should include the start date and the completion date, ‘the scope of work,’ the payment amount, and work schedule, as well as penalties for delays.” The scope of work provides details about the work that will be performed as well as the materials needed to complete the project.

Pay attention to red flags. Be aware of the signs that may indicate incompetence. The biggest indicator is the request for a large sum of money up front. Standard procedure is for a contractor to ask for one-third of the estimate in advance. If you’re asked to pay half of the bill or more initially, it is likely that the contractor is illegitimate. Another major signal is a contractor without a license or insurance.

This article originally appeared in the October 2009 issue of Black Enterprise magazine.