What to Ask a Contractor Before a Home Remodel

Summary:

• When hiring a contractor, start by assessing your project’s size and budget, gathering recommendations, and asking essential questions about licensing, insurance, references and project scope to ensure reliability and expertise.
• Watch for red flags like pressure to decide quickly, lack of written agreements, or requests for full payment upfront, and prioritize clear communication, progress updates and structured payment schedules during the project.
• After completion, review the work, leave an online review to help others, and update your insurance to reflect any home value increases or safety improvements from the renovation. 

When you don’t have the time, tools or experience to undertake a home project, or if you simply aren’t comfortable doing the work, a professional can probably save you a lot of aggravation. But maybe you’re not familiar with the process of hiring one, or you don’t know what questions to ask a contractor or how to spot the red flags that could signal trouble. Read on for valuable information that’ll help you line up the right builder for a quality job faster than you can say, “3, 2, 1 … contract.”

Get things rolling

• DIY or pro? The size of the project and the type of work that needs to be done will affect your decision. Just remember, there’s no shame in calling in a pro.
• Establish a budget. Set expectations and avoid overpaying for the job. An online home improvement and repair calculator like the ones at Costimates and HomeGuide can show you the typical cost of a variety of projects.
• Ask around for recommendations. Friends and family can give honest suggestions about contractors they’ve used. So too can neighbors. You can even search the Better Business Bureau for accredited businesses and read ratings, reviews and complaints.

Questions to ask general contractors

• Are you licensed? Certification will be state-issued and should be for the specific type of work required by your project. A contractor with an up-to-date license will be aware of any recent building code changes and have an understanding of new construction practices.
• Are you bonded? A surety bond provides you with financial protection when a bonded contractor defaults on your project or otherwise fails to meet obligations.
• Are you insured? An insured contractor assumes the liability for any injuries suffered by workers in your home.
• What size projects do you take? If your project is larger than they’re used to, they could get overwhelmed; if it’s smaller than their typical jobs, they might turn it down or make it less of a priority.
• Can I review your references? An extensive list of previous clients that goes back more than just one season can help establish reliability and experience. If they have supplier and/or bank references to show you, that’s even better.
• Will you provide a lien waiver upon completion? This legal document serves as a form of receipt, verifying that all payments have been made in full. It prevents the contractor from filing a lien on your property for additional payments.

Red flags to avoid

There are a variety of ways unsuspecting homeowners can be targeted by unscrupulous scammers. Look for these warnings when dealing with potential contractors:

• They pressure you to make a quick decision.
• They’re difficult to reach or unresponsive to your questions.
• They won’t put details in writing.
• They’re vague about their qualifications or experience.
• They require full payment up front and/or only accept cash.

Picking the right pro

Compare estimates. Get written estimates from at least three contractors and review them carefully.  Don’t assume that the lowest bidder will offer the best value.

Choose who will do the work. The contract you sign should detail all parts of the job, including things like the scope of work, payment schedule, required permits, warranties and even terms for dispute resolution.

While the work is being done

• Keep communication lines open. Let the contractor know how you want to be contacted in the event of an emergency. Explain how you want to be given project updates and set regular check-ins to review progress. If something seems out of place as the job is being completed, ask questions. If problems arise, request regular reviews and an updated timeline of the work.
• Respect the construction zone. If the size and type of job will cause undue disruption to your routine, you may want to stay somewhere else while the work is being done. If you decide to remain at home, protect family members and pets by making the work zone off-limits.
• Keep track of all payments and papers. File all your permits, change orders, written notifications and any other paperwork related to the job in a single folder for easy reference.
• Make sure the work keeps pace with your payments. A structured payment schedule, where you pay the contractor at several specific milestones of the project, lets you weigh in on the quality and timeliness of the work. 

If you need to resolve a problem

If you have complaints about the work, your first communication should be in writing with your contractor. If the contractor is unable or unwilling to address your concerns, consider consulting an attorney. A written complaint can be filed with your state’s department of justice, your state’s licensing board for general contractors, or the Better Business Bureau.

After the job is complete

Leave an online review. Help other homeowners by sharing the details of your project—what went right, what went wrong, and your overall satisfaction with the job.

Protect your investment. Did the project increase the value of your home? Review your home insurance with your agent to ensure your policy adequately covers the improvements. If the renovations mitigate risks in a way that makes your home safer (such as a new roof, front door, security system or fence), you may qualify for a discount on your insurance. Find out more by reviewing this AAA guide to insuring your home.