Articles - Archived Money Matters

Hiring a Contractor

Do you have some home repairs or renovations in your future? Here are some important things to consider before hiring a contractor.

Start by asking friends, neighbors and local building supply companies for names of reliable contractors. You want to get at least three bids to compare. Make sure the bid is fixed—meaning it's based on the total job—not a bid that can grow due to unexpected time and materials. If the bid is fixed, you'll have a better idea of how much to budget and hopefully won't incur additional costs if the project takes longer. Each bid should be in writing and contain a breakdown of labor and material costs.

Ask the contractor for a list of references, and contact the Better Business Bureau (www.bbb.org) to see if any complaints have been filed. When talking to a reference, ask if you can view the work. This will let you see exactly what the customer received, and if it meets your expectations.

When choosing your contractor it is important to remember that you want quality materials and a contractor that is licensed and insured within your state. If a bid comes in significantly lower, this can be an indication you may be talking to an unlicensed contractor.

A few other warning signs to look for:
• Be wary of anyone who shows up at your door saying there is a serious problem that needs to be addressed immediately. Seek a second opinion before taking any action.
• Be cautious of special offers, such as using your home as a "model" to receive a discount, or a bid that is good for today only.
• Be cautious of a contractor who wants full payment up front. Most contractors expect a small amount to begin, with the remaining payments to be spread out over project's course.

For more information on hiring a contractor in North Carolina, visit the N.C. Licensing Board for General Contractors at www.nclbgc.net, or the state Attorney General's Office at www.ncdoj.com.