Guidelines for Dealing with Contractors

Are you planning to hire a contractor to do a major remodeling project or fix a serious plumbing or electrical problem? If you are, there are a few things you need to know before you hand over even one of your hard earned dollars.

Finding a contractor is generally easy. You can usually find several listed in the Yellow Pages or by asking friends and family. However, finding a contractor that you can depend on and trust may be a little harder. Never agree on the spot to hire a contractor. Ask questions about his experience, his work schedule, ask for references and if you can call them. Don't get hooked by the old "If you don't sign now, I may not be able to do the job for several months." Don't get discouraged and accept the first contractor who says he can do the job in a week and for the cheapest price. Cheapest isn't always the right way. Be polite, but firm, and tell him you will get back to him after you check his references. And do follow up on checking those references.

A contractor's reputation is his future earnings. It is and should be every bit as important to him as it is to you. Even if he was recommended by one of your friends, ask for several more references. If possible, go talk to them personally. You want to make sure you are actually talking to a former client and not a family member of the contractor. Ask to see the actual work that was done.

Call the Better Business Bureau and ask for a check of any complaints against the contractor. Check both under his name and the company name if different. You would be surprised how many small contractors simply change the name of their business and continue on after word gets out that they are unreliable. Try to find out how long they have been in business. If they are a plumbing or an electrical contractor, ask to see their license. Call the county's or city's plumbing or electrical inspector to to see if they know of any complaints against the contractor.

Once you have established that the contractor seems to have a good reputation, set up an appointment with him to discuss the cost and a specific time limit that the job can be completed in. Setting a time limit is very important. Believe me, it is extremely important. Without a set date, a contractor can postpone your work indefinitely. He can put other jobs in front of yours and will, if he can. So set a date, then add a couple of weeks for emergencies or unexpected problems. This final date should be on the contract signed by the contractor.

The cost of the job should also be detailed, with an itemized statement of supplies and materials as well as labor. Once that agreement is signed, any unexpected costs should be agreed upon by you before it is added to the bill.

If the job to be done concerns plumbing or electrical, and will have to be inspected by a county or city inspector, it should be part of the agreement that final payment will not be made until it has been inspected and approved. This statement alone will give you extra protection that the job will be done correctly. If the contractor knows he will not be paid until it has been approved, he is more likely to do the job right the first time.

And now, another extremely important thing to know is to never, never hand over more than one third of the total agreed upon price in the beginning. Of course, most small contractors will need money to buy the materials with in order to get started on the job. That's fine, but a third of the price should be enough to get them started. Consider how a bank works. A bank loaning the money for a home construction loan doles it out in installments. The bank hands out each installment after making sure that the work is being done and the money is being spent where it should be. The same should be true with your contractor. Make sure you are getting the materials and labor you are paying for. This is one lesson you don't want to learn the hard way like I did.

Eight months ago, I hired a plumbing contractor to install two septic systems. I turned over three quarters of the agreed upon price to the contractor, so that he could purchase the materials he needed to install the tanks. I did not get a specified date in the agreement. I didn't think I needed one. He promised to have the job done in a week or less. "AS SOON AS POSSIBLE," he promised. As I said, that was eight months ago. The contractor now will not return my phone calls and I am at the point where I am preparing to pursue legal action against him.

So please, even if a contractor promises you everything, including getting the job done ASAP, be very careful. Make sure that as soon as possible has a time limit. Just follow the guidelines above and hopefully, your experience with contractors will turn out much better than mine.