10 Essential Steps to Hiring a Contractor

We’ve all heard the home renovation contractor nightmare stories. Shoddy workmanship, lack of communication, and even worse–work left unfinished with the funds stolen. The success of your home improvement project depends on hiring the right contractor. We’ve compiled a list of steps for hiring a home improvement professional and a few mistakes to avoid.

Define the Project Scope

Knowing your scope and expectations up front helps:

• Find the right contractors
• Gain more accurate estimates from contractors

So don’t say, “Replace my siding.” Clearly outline your home renovation project’s scope, goals, and specific requirements.

Let’s say you want a kitchen renovation. What does that mean to you–a to-the-studs overall or painting the cabinets and new appliances? It’s the same project but with two very different scopes of work. They also require different expertise. A full remodel will need a contractor skilled in plumbing, electrical, gas lines, and general construction.

If you’re concerned about getting the most value from the home renovation, this resource estimates the job’s cost, resale value, and recouped cost.

Research Contractors

Take a multi-layered approach when it’s time to find contractors.

Referrals are worth their weight in gold, especially from someone you trust. But because a family member or neighbor had a good experience last year with their flooring installation, it doesn’t mean you’ll get the same quality work. Supervisors and laborers can change.

Shortlist who you want to work with by combining the following measures when researching contractors.

• Start with a web search using your intended home renovation project and “near me.” For example, “Landscapers near Mooresville, NC” or “Roof Replacement near Mount Pleasant, SC.”
• Visit the contractors’ websites. You’ll find photos of their past work, a description of their work, years of experience, and testimonials. Look for licensing information, too.
• Scrutinize online reviews for a well-rounded view. The company’s on-site testimonials are a start but look elsewhere. People leave their feedback all over the web, such as on:
  • Angi (or Angie’s List)
  • HomeAdvisor
  • Houzz
  • Google
  • Yelp
  • Better Business Bureau (BBB)
  • NextDoor
• Does your neighborhood have a social group? Ask who they’ve used for similar work or if they have used the contractors you’re considering. 
• Home shows don’t happen often, but if there is one near you, a visit is your chance to learn about local home contractors, see their work, and ask questions.

Check Licensing and Insurance

Confirm that the contractor’s licensing is entirely in order. This is non-negotiable for legitimacy and safety. Most states have an online portal for the general public to search by license number for a contractor. It should show if their license is current or if any actions have been taken. Here are links to a few state licensing portals:

• Ohio Department of Commerce
• North Carolina General Contracting Board
• South Carolina Contractor’s Licensing Board
• Georgia Professional Licensing
• Tennessee Contractors Verification
• Virginia License Lookup
• Pennsylvania Home Contractor Licensing
• Florida DBPR Licensing

These portals may not show the contractor’s insurance and liability information. You’ll get this from the contractor, but you must verify with the insurer.

Get Multiple Bids

Invite your top contractor choices to bid on the home renovation project. Remember, the cheapest is only sometimes the best. Compare prices, timelines, and the scope of work in each proposal. Keep quality of work and customer service in mind as you meet with each home contractor to discuss the scope of work.

Check References

Insist on and follow up with the contractor’s references to gauge reliability. You want to hear how their workmanship has held up over time. Other factors to inquire about:

• The contractor’s ability to stay on budget and timeline, 
• How the contractor handled any hiccups
• Their customer service.

Review Portfolios

Visual proof speaks volumes. Assess if their previous works align with your expectations. Especially if the home renovation involves drastic changes to the home’s style, you want to see if the contractor’s tastes match your own. Otherwise, there could be conflict about the final product.

Ask Questions

During the bid meeting, ask questions about the contractor’s experience. Inquire about subcontractors–if they use them, how they vet them, and how they manage on the work site.

The contractor should give you a rough timeline for the project’s length and when they could start. Ask how they handle unexpected issues. Things do come up–a contractor has a car accident on the way to the work site, or the weather prevents work, or there’s a supply chain delay. You never know what could happen. How will the contractor handle any bumps in the road?

Finally, determine who’s responsible for pulling any required permits and scheduling inspections.

Formalize a Contract

Protect both parties with a binding agreement detailing every critical aspect of the job. This includes the full scope of work, the budget, and a proposed timeline.

It’s not uncommon for a contractor to ask for an upfront deposit on larger projects. That’s partially to buy the supplies needed for the work upfront. It also ensures you’re serious about the work. After all, contractors need to pay the bills, too. If you cancel, those days could have been spent helping another customer.

The larger the project, the more you’ll need to outlay. Projects that span weeks and months are better suited to paying in milestones. 

However you arrange payment, read the contract and terms carefully before signing.

Communicate Clearly

Know who your point of contact is for the home renovation. The longer and more extensive the project, the more you should expect regular progress updates. Expect to keep the lines open between you and your contractor. 

Document all interactions and modifications related to your project for future reference. This can be valuable in case of disputes or misunderstandings.

Monitor and Inspect

You should regularly check in person on the home renovation progress. In fact, the best contractors expect regular walk-throughs and may schedule these with you at regular intervals. It’s your home, after all. You have the right to examine the workmanship to ensure it aligns with the agreed-upon timeline and specifications. 

If you can’t inspect the work, send a trusted resource in your stead. For instance, if it’s a new construction home, your real estate agent can stop by to see how the work is going.

Always finish the home renovation with a final walkthrough in person with the lead contractor. Ensure that all work is completed satisfactorily before making the final payment.

Hiring Mistakes to Avoid

Hopefully, following these steps will help you avoid con men posing as home contractors. But if you make the following mistakes…let’s say buyer, beware.

• Ignoring Due Diligence: Skipping reference checks can land you an unreliable contractor.
• Skipping License Checks: Not verifying licensing and insurance may lead to legal and financial problems.
• Paying Upfront: Paying the full amount before work starts is risky; the contractor has no incentive to finish the work. Set up a milestone-based payment plan or give a partial deposit upfront.
• Remote Quoting: Phone-based quotes can be significantly inaccurate. Insist on an on-site estimate.
• Hiring Based on Personality: Friendliness doesn’t equate to job performance.
• Choosing Price Over Performance: The lowest bid might also mean the lowest quality. Balance cost with expertise.

The good news is the best home contractors want happy clients. They know how vital your referral and recommendation are to their business. These steps help you steer the process from start to finish and dodge common pitfalls in hiring a quality contractor.