How to Choos a Contractor

Choosing a contractor can be a daunting task. With so many horror stories and negative things associated with the construction industry, it is easy to see why people are terrified of contractors. However, with a little bit of knowledge and some background research on your part, you can greatly reduce the likelihood of a bad experience. Here are some helpful tips to help you in your search.

1. Only use licensed contractors:

Any contractor who gives you a bid for a job should be listed with the State of Florida as having one of three types of contractor's licenses: certified general, certified building, or certified residential. The corresponding initials before the license numbers will be CGC, CBC, or CRC respectively. Just remember an occupational license is not the same as a contractor's license- it is only a tax that allows you to conduct business within the county limits. You should check to see if a contractor is licensed by the State of Florida by visiting www.myfloridalicense.com

2. Ask for past and current references:

A wonderful source of information about a contractor is current and past customers. By talking with customers, you can ask specific questions and get a feel as to how the contractor will perform on your job. Just remember that it is not enough to just ask for the references- you must call them as well!

3. Ask for a banking reference:

The number #1 reason why contractors go out of business in the State of Florida is financial mismanagement and a lack of cash. A good contractor will have a sound track record with their banking institution and not hesitate in providing you with the reference. Although a bank cannot give out specifics (such as balance information, checks cleared, etc.) they can tell you how long the account has been open, if there have been any past troubles and if they have an active savings account. Just remember that if the contractor has trouble paying his bills your job may be delayed- or even worse, never finished at all.

4. Make sure they have liability and workers compensation coverage:

Unfortunately accidents do happen and things do go wrong on job sites. That's why it's crucial to make sure that you are protected should anything go wrong. A contractor should have a current general liability and commercial auto policy valued at least 1 million dollars as well as a workers compensation policy (or a valid state issued exception card). If something does go wrong on your property, you want to make sure the contractor has it covered. If not, you will be responsible.

5. Check your local organizations:

A good contractor likes to 'toot their horn'. They work hard at becoming compliant, trustworthy organizations and they want the world to know. Check to see if they are registered with your local Chambers of Commerce or Better Business Bureau. If they are, odds are they are concerned about the success and reputation of their business.

6. Ask about their experience and area of expertise:

A dentist and a brain surgeon are both considered doctors, but would you be willing to switch the two? Of course not. The same analogy holds true for contractors. You should find someone who is an expert in the area that you are looking for and verify it by looking at past projects. In the contracting business there is no such thing as a "jack of all trades"'.

7. How professional was your 1st encounter:

Considering that you are the paying customer and the contractor is trying to earn your business, you would think that the potential contractor(s) would try to put their best foot forward in the first meeting. Did they show up on time? If they were running late, did they call and notify you? Were they professionally dressed? Did they have accompanying literature and business cards to hand out? Were they friendly and did they answer questions? Were they knowledgeable about their product and service? The best rule of thumb is to trust your intuition. If a contractor is serious about running a reputable company they will work hard to earn your business.

8. Ask about the payment terms:

Most construction agreements follow the same general format: A small deposit up front (usually 5% to 10%), several progress payments based on certain tasks being completed, and the final retainage payment (usually the final 5% to 10%) once all work is complete and you are satisfied. Furthermore, a good construction agreement will allow you to cancel the entire agreement within 24hrs with no obligation; of course with all deposit money being refunded.

9. Ask about their change order procedure:

Contractors get a bad reputation by surprising customers with huge hidden fees. A good (or ethical) contractor will not change the price of the job for any reason unless it is first authorized by you in writing. The only reason the contract price should change is: 1) you, the customer, have either increased or decreased the scope of work, or 2) something unknown came up, during construction that had to be addressed. These "somethings" are usually items that are hidden, unknown, or specifically excluded in the original estimate. For example, an old pipe was buried in your yard that was not visible and must be relocated to dig the footings. If changes to the contract price must be made, a good construction agreement should clearly outline ahead of time how much they will charge for those changes. You should never agree to unexplainable or unjustified fees.

10. Carefully review the contractors estimate:

The best contractors are meticulously detailed in their proposals. This is not only for their protection, but for yours as well. The items that should be clearly spelled out are: the scope of work (what is being done), where it is to be performed, what materials will be used, the timeframe for the work to be completed, the payment terms, and a list of all specific exclusions. Be wary of any estimate that looks rushed, isn't detailed, and seems vague. There are two famous sayings in construction: The first being, "the big print giveth, the small print taketh away" and the second, "you get what you pay for." Although cost is an important consideration when making your decision, it should never be used as the only criteria. To do so is inviting disaster.

 

Good luck in your search!