We put a list together of the five most important things for homeowners to consider when hiring a contractor to avoid contractors who aren’t qualified for the job. Homeowners should feel confident about the contractor they are hiring for the job, and not worrying about if the contractor can do the job properly or if you are going to get stuck getting work done that isn’t to your standard. Now that you are ready to start your renovations make sure that you have done your research first before jumping straight into the work. Here are a few things that you need to know about choosing a contractor.

Experience and Credibility

Here are some things that you should be looking for: A contractor who has been in business for a while, someone who is licensed and registered in the state of the work being done (every state has different rules; check yours on contractors-license.org), has insurance (liability; worker’s comp), and has a solid reputation, either by word of mouth or through reference or testimonials. Reputation is key, if the contractor has been highly rated by a friend, someone you know that has had work done by them, or through references or testimonials then its most likely safe to say that the contractor is credible and experienced for your job. But first make sure that they also have a clean bill of health from the Better Business Bureau and from your state’s consumer protection agency.

Get Bids

Talking to friends, family and neighbors about their contractors like if they showed up and finished on time, any unexpected costs, and all the good and the bad about that contractor. Then choose the top three of your choices and get bids from them, toss the lowball offer to see how they react towards it. While we’re all looking for value, be cautious if a contractor bids several hundred or thousand, depending on the job, dollars lower then the other contractors. The really low bid might seem like a great deal, but there has to be a reason why the contractors bid was so low, such as cutting corners on the work, perhaps using cheaper materials then the bid, or they start the project only to tell you a little ways through that the project is more complicated than initially assumed therefore more expensive. Be cheap but don’t be too cheap.

Beyond the Contract

If you have major renovations going on you are going to be spending a lot of time with this contractor, so when you are deciding on the contractor, think about whether you feel comfortable with their personality, background, methods, and communication skills. You want to make sure that everyone is clear about the project; everyone should be on the same page. If everyone is not clear about the projects you could end up disappointed, frustrated and possibly be out thousands of dollars beyond what you had budgeted for. You want to make sure that your contractor is trustworthy, so you don’t end up with a project that turned out the opposite of how you wanted it.

The Contract

The Contract is the most important aspect of the project; every project should have one no matter the size of the estimated work. Every detail about the project should be included in the contract – from a work timetable, start and finish dates, to the description of the work, to the materials that will be used, right down to the brand or make of the fixtures, to the payment schedule and everything in between. Make sure to include a time limit for fixing defects, if its not included in the contract the contractor is not liable to fix the defects. Contracts make sure that if a dispute does arise, the problem can be dealt with. If it’s in the contract then the contractor has to fix the problem without any if, and or buts about it.

Paying the Contractor

When it comes down to paying the contractor after all the details are set about the project in the contract, don’t pay the contractor more than 30 percent upfront. If the contractor has been around a while they will most likely have accounts at big stores to purchase the materials needed for the project. Make periodic payments as the contractor completes certain portions of the project. Expect to make an average of three payments per project and leave a significant portion to be paid only when the job is completed and you are satisfied, at least ten percent. This will be the best way ensuring that work will be done according to contract and done the way that you want and expect.