Hiring a Licensed Contractor: 3 Things You Need to Do

If you hire a licensed contractor blindly, you could be making a big mistake. While the good companies and individuals probably exceed the bad ones by a considerable margin, the bad ones are ubiquitous enough to mean a homeowner has to be careful. Even those companies that aren't scammers outright may not have all their ducks in a row. They may even want to provide their customers with the best work possible, but don't have the organization and know-how to do so. Here are three things you need to do before you hire someone.

Verify Paperwork

Before you hire a licensed contractor, you need to make sure they are, well, a licensed contractor. Anyone can tell a homeowner that they have their licenses in order. You can go next door and tell your neighbor that you have a license to perform construction on his house, but it doesn't mean that you do. Ask to see the credentials. Don't take the company's word for it. Call your local government and ask them to verify the information. For certain jobs in certain cities, a license won't be required. Still, you're taking a chance when you go with someone who doesn't have it.

Obtain Estimates

You could easily wind up paying a ridiculous sum for the job if you don't go around and get some estimates beforehand. Most experts insist that a homeowner get at least three before they decide which licensed contractor to hire. Of course, you can go beyond that if you like. While gathering estimates is important for comparison shopping purposes, however, you aren't always making the right move by going with the lowest bid. Quality workmanship and materials have their own value, so don't forget that you want something you can be proud of.

Pay Following Completion

Do not do business with a licensed contractor who insists on upfront payment. A down payment is one thing, a very common show of good faith that can allow the company to purchase materials without going into the hole. But it shouldn't exceed more than 15% of the estimated cost of the job. Any more than that, and you're giving away a very important advantage in your working relationship. If the company meets the bare minimum standards of your contracted work, but doesn't come anywhere near meeting your standards, you won't be able to withhold payment. If you find yourself in bed with a scammer, they may very well take your up front payment and abscond. Pay when the job is completed and not a moment before.