To ensure your home improvement project is successful, follow these essential steps when selecting a contractor:

  1. Gather Recommendations
  • Ask family, friends, and neighbors for suggestions.
  • Request a list of local members from the National Association of the Remodeling Industry.
  • Consult with building inspectors about contractors who consistently meet code requirements.
  • Inquire at local lumberyards about contractors who purchase quality materials and maintain good payment records.
  1. Conduct Phone Interviews
  • Call each recommended contractor and ask:
    • Do they handle projects of your size?
    • How many projects will they be managing alongside yours?
    • How long have they worked with their current subcontractors?
    • Can they provide references from past clients?
    • Are financial references from suppliers or banks available?
  1. Meet Candidates in Person
  • Select three or four contractors for in-person meetings.
  • Discuss your project and ensure they answer your questions clearly.
  • Pay attention to their expertise and how well you communicate.
  1. Perform Background Checks
  • Contact previous clients to learn about their experiences and, if possible, view completed work.
  • Visit an active job site to observe organization, safety, and worker conduct.
  • Check with your state’s consumer protection agency and the Better Business Bureau for any history of disputes.
  1. Request Detailed Bids
  • Ask for bids from three contractors, specifying your project goals and budget.
  • Ensure each bid breaks down costs for materials, labor, and other expenses (like permits).
  • Remember, materials typically account for about 40% of the total cost.
  1. Make an Informed Decision
  • Don’t choose based solely on price—experts recommend avoiding the lowest bid, as it may signal corner-cutting or desperation.
  • Prioritize expertise and your comfort level with the contractor.
  1. Establish a Payment Schedule
  • Agree on a payment plan, which may range from 10% to 50% upfront, with the remainder distributed throughout the project and a final payment upon completion.
  • Ensure the payment schedule is included in the contract.
  1. Review the Contract Thoroughly
  • The contract should clearly state:
    • Start and completion dates
    • Detailed job description
    • Materials and products to be used
    • Requirement for lien releases from all subcontractors and suppliers
    • Proof of liability insurance and worker’s compensation
    • The agreed payment schedule
  • Make sure you fully understand all terms before signing.

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