17 Steps to Ensure Success When Hiring a Contractor

Hiring a contractor can be a game-changer, either propelling your project toward success or leading it astray with delays and poor quality. Choosing the right contractor is critical to turn your vision into reality within budget and on schedule, without compromising on workmanship.

Contractors may start with great intentions, but financial pressures can lead to delays and an increased demand for change orders as they attempt to secure funds to pay subcontractors. A great contractor combines expertise, financial stability, and a commitment to excellent customer service. Keep these strategies in mind to ensure your contractor is top-notch.

Get full names

Ensure you have the complete company names and personal details of those involved in your project to aid in thorough reference checks.

Licenses matter

Verify that your contractor is listed with the appropriate state licensing board and maintains a good standing.

If it’s too good to be true, it is

Be cautious of bids that are surprisingly low, as they might indicate a contractor in financial distress who may resort to inferior materials or unskilled labor.

Schedule it

Insist on a detailed timeline. Some contractors might stretch the schedule to delay payments to subcontractors. Include time/cancellation clauses and specify working hours in your contract.

Watch the frontload

If the upfront payment seems disproportionate to the initial work completed, your contractor might be struggling financially.

Hold them accountable

Establish financial disincentives for failing to meet contractual obligations. Consider demanding payment and performance bonds for added protection.

Be clear on the numbers

Payment terms should be crystal clear, with a defined total amount. Align payment schedules with job progress, ensuring a sufficient retainage to incentivize the contractor to complete all work, including any final punch list items.

Get the info

Require detailed specifications for all materials used, including provisions for tools and equipment.

Clean up is part of work

Clarify storage locations for materials and tools, and mandate an orderly site. Have them provide a layout or description to prevent clutter in community areas.

Insurance reassurance

Request proof of insurance coverage, ensuring the levels are appropriate before work begins.

Know the worst-case scenario

Specify liability and notification processes for additional repairs. Define responsibility for damages and establish jurisdiction and venue for contract enforcement in potential legal situations.

Get a warranty or some kind of guarantee

Ensure that any warranties or guarantees come in written form.

Provide supervision

Understand who will supervise the labor and monitor progress from your side. For larger projects, consider employing an architect or engineer for scope definition and ongoing oversight.

Define responsibilities

Clearly outline who handles permitting and scheduling inspections, incorporating city or county evaluations into the schedule.

Get the shot

Document the project with before-and-after photos to update community members, bringing visibility to the progress and benefits.

Walk the walk

Have the contractor guide you through the site to demonstrate completed work, ensuring transparency in what you're paying for.

Talk is cheap

Avoid verbal agreements. A detailed written contract may seem cumbersome but is crucial in preventing disputes. Engage an attorney to draft a comprehensive contract safeguarding your interests.