The decisions your general contractor<\/a> makes and their level of skill could significantly impact the value of your home, so how can you be sure your contractor will realize a remodel to boast about, finish on time, or finish at all? This guide will provide you with a checklist to ensure your contractor hire is a solid one \u2014\u00a0we\u2019ll cover licensing, insurance requirements, bid and scope-of-work details, pricing schedules, and more.<\/p>\n Before you do any hiring, make sure you actually need a general contractor<\/a> (GC) \u2014\u00a0rather than a handyman<\/a>.\u00a0 A general contractor is necessary for complicated projects that require different kinds of specialists (electricians and plumbers, for example). A GC will have their own crew<\/a> of workers to complete these big projects.<\/p>\n A handyman, however, might be a better choice for small repairs and projects.\u00a0Think of tasks that can be done in a day or two \u2014\u00a0such as replacing doorknobs or other hardware. A handyman will do the work personally, while a general contractor will be managing<\/a> a team of people to get the job done.<\/p>\n Since 2015, the BBB has received over 1,500 complaints about scams<\/a> in the home improvement category, with people reporting losses up of tens of thousands of dollars. So you may come across questionable contractor candidates in your search, and you need to be able to vet each one. To start, make sure your contractor has all of the legal paperwork in order<\/a>, affirming that they are allowed to do the work at hand.<\/p>\n If your contractor must be licensed to perform the type of work you\u2019re asking them to do \u2014 you could run into a lot of trouble down the road if it falls outside their abilities. If you plan to sell your house someday, an unlicensed contractor \u2014 and the work they\u2019ve done \u2014 might not be considered valid<\/a> in real estate transactions. You can find a complete list of the licensing requirements<\/a> for every state from Angie\u2019s List.<\/p>\n You can also look up licensing via your state\u2019s Department of Labor or ask the contractor to provide proof. Your state\u2019s government site <\/a>may have a portal where you can check the license number and verify that the contractor is in good standing.<\/p>\n Construction is a dangerous field and accidents happen. According to a 2018 report from the Occupational Safety and Health Administration<\/a>, 21% of worker fatalities were in construction. The key is making sure that if something bad does happen, you \u2014\u00a0and your contractor \u2014\u00a0are legally covered. If any damage is done to your property, or if your contractor, you or someone else in your family is injured during the remodel and your contractor isn\u2019t insured, you could be on the hook<\/a> for the repairs.<\/p>\n First, review your own insurance coverage<\/a>. Your homeowners insurance policy should include personal liability, but it probably only covers a small amount, which is why you want to be sure your potential contractor carries his or her own policy. Ask the contractor to show proof of insurance \u2014\u00a0here\u2019s what you\u2019re looking for:<\/p>\n Dan Ferrera<\/a>, a general contractor in San Luis Obispo, California, who has won Best of Houzz 3 years in a row<\/a>, says his own company (Ferrera, Inc<\/a>) carries a $4 million general liability policy. This should cover any personal injuries or property damage the contractor might cause to you, others who live in the home, and your property.<\/p>\n Ferrera also recommends checking for an \u201cinland marine<\/a>\u201d policy, which would cover any theft of materials or equipment on the job site.<\/p>\n Workman\u2019s compensation should cover the builders involved in the project, in the instance they get hurt. The requirement for this insurance varies by state \u2014 see what your state requires<\/a> and make sure to get a copy of the policy certificate.<\/p>\n Automobile insurance must cover all work vehicles. Ferrera notes that a lot of general contractors don\u2019t insure or keep track of their employees\u2019 vehicles \u2014\u00a0this can create a huge risk if an accident occurs onsite.<\/p>\n The policy should also cover incidents that are caused by the contractor\u2019s equipment, i.e., if the contractor trips over the toolbox and sprains their ankle. If they get injured on something that you own, they could claim it was your fault, which could result in a lawsuit.<\/p>\n On your end, clear stray household items out of the way \u2014 all clutter, like baby toys and pet items, should be moved out of any areas where construction is happening. This will minimize the risk of injuries.<\/p>\n Get bids from a few different contractors \u2014 this is a smart way to understand the ballpark range of costs for your proposed construction project. Be wary<\/a> of any contractors whose bids are very high or very low; you know what they say about things that sound too good to be true! A very high bid suggests the project<\/a> might be out of the contractor\u2019s comfort zone. Investigate this by asking for details about how they plan to execute the work.<\/p>\n Additionally, when you do ask for the bid, make sure it\u2019s a fixed price bid. With an estimate<\/a>, the final amount could be much higher in the end.<\/p>\n When you request the bid, ask for an itemized one<\/a>. That way, you can review the type of building materials suggested in the bid, and make sure those materials are the ones you want in your home.<\/p>\n The kinds of materials and where they are sourced from can make a significant difference in the bottom line pricing, and if the estimate is shockingly low, it\u2019s possible<\/a> the contractor is planning on using cheaper and less desirable materials.<\/p>\n Discuss the distribution of the money owed to your contractor before any work begins. You shouldn\u2019t pay more than 30% upfront<\/a>, and even that might be too much. Kim Wirtz<\/a>, a top agent based in Illinois with 28 years of experience, thinks you should only pay a contractor upfront if it\u2019s a large job \u2014\u00a0$10,000 or more. Otherwise, she warns, \u201cContractors that require money upfront are usually the ones that are kind of struggling. They can\u2019t afford to buy the materials, the paint, things like that.\u201d<\/p>\n Instead, Wirtz recommends you pay the contractor 50% of what was due when 50% of the project was completed, and to your standards.<\/p>\n Finally, she emphasized that the final amount owed \u2014 10% or so \u2014 should only be paid once all the work is complete and it meets your approval. This way you know the work will get done as quickly as possible, and you can confirm that it meets your standards and initial requests.<\/p>\n Another way to vet a contractor is to reach out<\/a> to their suppliers. Since contractors typically use the same suppliers over and over, they should have long-established relationships with them. These contacts can provide valuable insight into the nature and quality of a contractor\u2019s work.<\/p>\n Speak with some<\/a> of the contractor\u2019s subcontractors or crewmembers, to gauge the relationship they have with their crew. Chances are if the same workers have been hired over and over, both parties have a good rapport and working style together; This bodes well for the success of your project.<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/05\/what-to-look-for-in-a-contractor-3-666x381.png\")
<\/a>Make sure you actually need a contractor before you hire one<\/h2>\n
Proper licensing<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/05\/what-to-look-for-in-a-contractor-2-666x381.png\")
<\/a>Insurance to keep you and your home legally protected<\/h2>\n
General liability<\/b><\/h3>\n
Inland marine policy<\/b><\/h3>\n
Workman\u2019s comp<\/b><\/h3>\n
Auto insurance<\/b><\/h3>\n
Supplemental coverage for equipment<\/b><\/h3>\n
![\"The](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/05\/what-to-look-for-in-a-contractor-4-666x381.png\")
<\/a>Spot-on pricing<\/h2>\n
No payment structure red flags<\/h2>\n
Good supplier relationships<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/05\/what-to-look-for-in-a-contractor-1-666x381.png\")
<\/a>Reputable crew<\/h2>\n
Vision for the project<\/h2>\n