Resources: Newsletter Articles: Choosing A Reputable Contractor

By utilizing the following information, you can potentially eliminate problems by choosing the right contractor.

Before committing to a construction project of any kind you should know the following: What work needs to be done? Will the work add value to the property? How much do you have budgeted for the work? What inconveniences will be experienced while work is being done?

Getting Bids

You should get at least three competitive bids for your project. Bids will vary from contractor to contractor. Sometimes these bids will vary dramatically. Choosing to go with the lowest bid is tempting but the lowest bid can result in unsatisfactory work that will cost you more in the long run. Make sure bids specify quality materials that are guaranteed by the supplier or manufacturer. Competitive bids are free of charge and will ensure you pay a competitive price for your project.

Contractors License

Ask to see the contractor's current license. You should also verify licensing with your Local State License Board. If you have access to the Internet you can go to the State License Board and pull up the contractor's name and confirm that the license is in good standing ( www2.cslb.ca.gov ).

Contractors Insurance

Ask for proof of insurance. Take the information and call the insurance company to verify that it is currently up to date. Ask if they have workman's compensation, which is required by law. If the contractor is not insured you could be liable for any accidents. Don't put yourself in this situation!

References

Ask for references! This can be one of your most valuable resources. You can ask specific questions such as whether the job was done in a timely and satisfactory manner, or if the reference would recommend the contractor to friends or family. Also, contact local consumer agencies such as the Better Business Bureau or the State Registrar to see if any complaints have been filed against the contractor.

Signing a Contract

Make sure that you read and understand the contract before signing. The contract should include complete information on the contractor (name, address, phone numbers, license numbers) and the job description (materials, time schedule, clean up after completion, total price, payment terms). The best way to pay for a project is in two or more separate payments called "draws". One draw occurs at the beginning of the job and the other after the job is completed. This protects you, and ensures the contractor has the funds required for supplies and payroll. In larger jobs, several draws may be made as work progresses. The goal is to find a balance that does not put either the contractor or the homeowner at risk. All warranties should be in writing.

Source: nationalcontractors.com

sherrybenninger@grubbco.com

The GRUBB Co., 1960 Mountain Blvd., Oakland, CA 94611

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