BBB: Top 10 Things To Do When Hiring A Contractor

The arrival of spring already has many people thinking about home improvement projects. Whether it’s a remodel, a build-on or new construction, some consumers are handy – or brave – enough to take things into their own hands. But many people look to professional contractors to bring their visions to fruition. Better Business Bureau of Minnesota and North Dakota ® (BBB) offers a Top Ten list of things people should do before hiring a contractor.

“There’s no better way to ensure a successful construction project than by ensuring you’re dealing with a reliable contractor,” said Susan Adams Loyd, President and CEO of BBB of Minnesota and North Dakota, “It’s worth every second of the time it takes to find one that will stand behind their work.”

Here are ten things everyone should do before hiring a contractor:

  1. Research their track record. Contact BBB to obtain free Business Profiles on any companies you are considering hiring. Visit bbb.org or, in Minnesota and North Dakota, call toll-free at 1-800-646-6222.
  2. Solicit multiple estimates. Shop around and get at least three estimates in writing. Use BBB’s Online Directory of Accredited Businesses to find reliable firms.
  1. Verify license and insurance. Ensure that companies are properly licensed. In Minnesota, contractors should be licensed or registered with the Minnesota Department of Labor (dli.mn.gov); in North Dakota, with the ND Secretary of State’s Office (sos.nd.gov/). It’s also important to verify that they are fully insured.
  2. Ask for references. Get references from three recent projects and verify them before signing a contract.
  1. Inquire about a lien waiver. A lien waiver is a statement from the contractor that all suppliers and subcontractors have been paid for their work. Be sure to ask whether the contractor will provide you with a lien waiver upon completion of the work.
  1. Don’t forget building permits. Permits are for your protection and help ensure that work will meet local building codes. Check with your contractor before starting your project. Homeowners bear the cost of building permits, but companies should be responsible for obtaining any necessary permits.
  1. Consider future service issues. If you choose to do business with a company that isn’t local, keep in mind you might have difficulty resolving any warranty or service needs that may arise after the project is completed.
  1. Get everything in writing. Never allow work to begin without a signed contract that includes: start and completion dates; a detailed description of services to be provided; any costs or allowances; a payment schedule and warranty information. Be aware that anything you sign is a contract.
  1. Don’t rely on verbal promises. Any promises made orally should be written into the contract, including warranty information.
  1. Arrange a payment schedule. Never pay in full in advance of a project. Stagger your payments according to agreed-upon stages of work completion and make a final payment only when work is finished.

BBB also advises consumers to exercise caution with salespeople who are going door-to-door claiming to be doing work in your neighborhood. Know who you’re dealing with; always verify the company’s track record with BBB.

The mission of Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. We are open 8 a.m. to 5 p.m. Monday through Friday. Contact BBB at bbb.org or 651-699-1111, toll-free at 1-800-646-6222.