ThemBid.com

How to Select a Contractor

Our users have found that ThemBid.com helps them make value based choices when seeking contract labor (i.e. getting your plumbing fixed). However, our service should not replace your due diligence before making a final choice. This article will discuss the essential information you need to know when it is time for you to select a contractor.

• Check their state contractor’s license
  The Contractor’s Reference site has a state by state index for each contractor’s board.
• Check the BBB
  You can search the BBB to get a reliability report.
• Location?
  Do they have a physical location? Is it staffed? The idea is to use that information to gain some perspective on the professionalism and stability of the company.
• How long have they been in business
  Your State’s Secretary of State office will be able to verify a Corporation, for other entities you will want to check your local City Hall for business license information.
• Insurance (Workman’s Compensation and General Liability)
  Workman’s Compensation is necessary when the contractor is bringing in additional labor. General Liability insurance should be provided by all contractors. Be sure to check the actual certificate.
• Samples of work
  If possible, visit actual work sites and try to get an interview with the customer.
• Level of expertise
  You want to be sure that the contractor has experience with your specific problem.
• Guarantee?
  Find out what guarantees the contractor offers and be sure that those guarantees are in writing.
• Get referrals
  Ask for a list of referrals of past customers, as many as you can get. With each name, you want the phone number and the type of project. Be sure to contact all the people who have had similar work done first.
• Get competitive bids
  Use a service, such as ThemBid.com to get several contractors to compete for your business.
• Get references from family, friends and/or a Realtor
  You can often save some time by asking trusted people for suggestions, especially if they have already had the same work you need done with success. But even so, I suggest you still get some competitive bids to provide yourself some leverage.
• Interview
  At the minimum you want to have a phone interview, but an in person interview at the contractors place of business is ideal.
• Financing
  The contractor should require no more than 33% up front and final payment should be given upon completion of work. Typically you will find a 30 (up front)/30 (midway)/20 (near completion)/10 (after completion) breakdown.
• Contract
  You should have your attorney review the contract for maximum protection.

Before selecting a contractor is it very important to clearly define your requirements (the Scope of Work). I will create an article about this topic next time.

What experiences have you had when selecting a contractor?