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Don’t Get Scammed: How To Choose A Reliable General Contractor

Sep. 2nd, 2010
in Real Estate
by Daniel Akinson

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Selecting the proper general contractor is critical to the success of the project. It can make you pretty anxious when we’re trying to pick a general contractor. When we decide to take on a construction project, it is a huge undertaking. It is expensive and emotionally draining. We hope for the best, but we worry and feel anxious throughout.

If you don’t want to become the victim of a scam, then you need to continue reading this 5-step fool-proof plan which will prevent you from making common mistakes when choosing a general contractor.

Step 1 – Is he insured?

A dependable, trustworthy contractor should be happy to provide you with the information about his insurance coverage, including who the provider is and the limits. There should be two types of insurance listed – liability and workers compensation. Liability insurance provides coverage in case of construction defects or similar disputes. Workers compensation (WC) provides coverage in case an employee is injured on the job. Most importantly, it protects you from any financial obligations if the worker is injured while working on your site.

Step 2 – Make Sure There’s a Contractor’s License

Depending on which state you live in, a person who is doing contracting work has to either state they are licensed or unlicensed. In many states, like California, a person cannot do contracting work unless they are licensed. You can easily go to a state’s website and check out if the contracting firm you are working with is legitimate. They have to be licensed through the state and the state where you live will have this information on file.

Step 3 – Does he have references?

You always need to check your contractor’s references. Now, more than likely, your contractor is not going to give you bad references. You still need to review the reference letters and call the people who have had work done so you can get all the necessary information to make an informed decision. It would also be a good idea to check out your state’s Better Business Bureau website to see if the contractor has any unresolved issues with other clients. This is a good rule of thumb no matter where you are doing business.

Number 4- You need to ask your contractor is they have pictures of previous construction work.

Going over the contractor’s list of previous projects will give you an idea of what type of building experience he has. Most contractors are specialists since the different construction industries have very specific requirements. Someone who typically handles large commercial projects, say a strip mall, may not be qualified to build a home. Certain fields, such as hospitals and restaurants, require an in-depth and very particular knowledge in order to work in that area.

Step 5 – Interview your potential contractor

The candidates may all look great on paper, but you need to find one that you feel you can work with. You’ll need to find a contractor who can share your vision and relate to your view point. A good interview, whether in person or over the phone, will help you decide how well you can work with the contractor. Pay attention to such attributes as communication skills, biases and beliefs, and other personal qualities to find that perfect contractor for your job.

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