1. Are you licensed? Make sure your contractor is properly licensed. In your state, all contractors MUST be certified, or registered with the State. Anyone can say they are licensed. Make the contractor prove it by either showing you the license or giving you a copy of it. Remember to check the expiration date. Being licensed is the law. If a contractor can not produce a valid license, DO NOT HIRE HIM!

If you have any questions or doubts, call the your State Dept. Of LLR.

2. Do you carry general liability insurance? Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or his employees. The insurance company will pay for the cost of replacing, and/or repairing any damage that occurs.

Anyone can say they are insured. Make the contractor prove it by having a certificate of insurance.

3. Do you carry workers’ compensation insurance? Make sure your contractor carries workers’compensation insurance. It protects you from liability if a worker is injured while on your property. Be aware that if the contractor does not carry workers’ compensation coverage, you may be liable for any injuries suffered by the contractor, or any of his employees on your property.

If the contractor is a one man operation, he can be exempt from having to carry workers’compensation insurance. If he is doing so legally, he can provide you with a copy of his Construction Industry Certificate of Exemption from Workers’ Compensation. This is very risky for you though. If he shows up with a helper and the helper gets hurt, with no workers’ compensation insurance, you may have to pay the medical bills. If the uninsured contractor is sloppy about verifying his sub-contractor’s workers’ compensation insurance and the sub-contractor gets hurt, again you may have to pay the medical bills. In short, it is much safer to deal with a fully insured contractor.

4. Do you offer Financing? Many Contractors are lender approved contractors. They have been approved and investigated by lenders as being financially sound, maintaining satisfactory relationships with suppliers, satisfactory credit and no outstanding complaints at the Better Business Bureau.

5. Are you a member of NARI or NAHB? NARI stands for the National Association of the Remodeling Industry and NAHB stands for the National Association of Home Builders. It’s always a good idea to consider hiring a NARI or NAHB contractor. In most cases, both organizations only attract conscientious contractors interested in bettering the industry and in weeding out unprofessional contractors. In order to become a member, the contractor’s background and references are thoroughly investigated.

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 Tags: Real Estate Contractors