10 Questions To Ask Before Inviting Him Out To Your Home

1. Are You Licensed? Make sure your contractor is properly licensed. In the State of North Carolina, all contractors MUST be licensed by the State as a General Contractor (if they are going to build projects over $30,000.00), and also have a city privilege license. A city license also lets you know where to find them. Anyone can say they are licensed. Make sure the contractor can prove it by either showing you their license or giving you a copy of it. Remember to check the expiration date. Being licensed is
   the law. If a contractor can not produce a valid license, DON'T HIRE HIM! Most reputable contractors have an office or place of business and doesn't  just work out of the back of their truck. If you live in a townhouse, villa or high rise condominium building with four or more units, only a Building Contractor or General Contractor is permitted to perform remodeling work.  Do not hire a Residential Contractor;  He would be operating outside of his license. Furthermore, hire a specialty contractor (trim carpentry, drywall, glazing, aluminum, plumbing, electrical, mechanical, roofing, etc.) to do only the type of work the license specifies. If you have any questions or doubts, call the city building department or the State of North Carolina Construction Industry Licensing Board.

2. Do you carry general liability insurance?  Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or his employees. The insurance company will pay for the cost of replacing and/or repairing any damage that occurs. Anyone can say they are insured. Make the contractor prove it by having their insurance company
   fax or mail you a certificate of insurance with you named as the certificate holder before any work begins.

3. Do you carry workers' compensation insurance?  Make sure your contractor
   carries workers' compensation insurance. It protects you from liability if a worker is injured while on your property. Be aware that if the contractor doesn't carry workers' compensation coverage, you may be liable for any injuries suffered by the contractor or any of his employees on your property. If the contractor is a one-man operation, he can be exempt from having to carry workers' compensation insurance. If he is doing so legally, he can provide you with a copy of his Construction Industry Certificate of Exemption From Workers' Compensation. This is very risky for you though. If he shows up with a helper and the helper gets hurt, with no workers' compensation
   insurance, you may have to pay the medical bills. If the uninsured contractor is sloppy about verifying his sub-contractor's workers' compensation insurance and the sub-contractor gets hurt, again you may have to pay the medical bills. In short, it is much safer to deal with a fully insured contractor.   

4. Will you provide me with a written lien waiver?  Your contractor should provide you with a written lien waiver at the end of the job. This is a legal document which says you the homeowner have paid the contractor in full for the services rendered and the contractor waives his right to place a mechanic's lien on your property. If during the course of construction you receive any notice to the Owner, documents from material
   suppliers or sub-contractors, it would be prudent to ask the contractor for a final release of Lien from each one prior to paying the contractor his final draw. This protects you in case the contractor doesn't pay his material suppliers or sub-contractors after you have paid him in full.

5. Will you pull all the required building permits?  Make sure your contractor pulls all required permits. This is very important. When a contractor pulls the required building permits, you know things will be done to "code". Also, many homeowners insurance policies require pulling a permit on any major remodeling to keep your home properly covered. Not all contractors will do this. Many prefer not to pull permits because of the time involved and the "hassle" with the inspectors. Some contractors may ask you to get the permits. This could be a warning sign that they are not able to pull the permit because they are unlicensed, or the work is outside their license or they don't have proof of insurance A reputable contractor will permit every job where a permit is required.
   

6. Do you guarantee your work?  Your contractor should guarantee his work for at least one year from date of completion. I have seen some companies only guarantee their work for 90 days!

7. Who will be in charge of the job?  Make sure the contractor or his foreman is on the job whenever work is being performed-especially if sub-contractors will be used. The responsible party must be intimately familiar with every aspect of your project. If you won't be home during the construction and must leave the house unlocked, or leave the key with the contractor, you must feel comfortable. You can't be worried about what is going on when you are not there.

8. Will you provide me with written references?  A good contractor will be happy to provide you with references. You should look for a well-established contractor who can give you several client references from the last 6 months to one year. Ask for the name of the contractor's accountant or banker. You want to ensure the contractor is financially sound and won't be declaring bankruptcy in the middle of your project.

9. What percentage of your business is repeat or referral?  When a significant source of a contractor's business is derived from repeat and referral business, it usually indicates that his clients are pleased with the work they've received.

10. How many projects like mine have you completed in the last year?   Your
    contractor should have experience in the type of remodeling project you want done,-not just "contracting experience".