Hiring a Contractor
Please use the following checklist when selecting a contractor. Price is only one factor when selecting a company to do the work. Remember that any company worth doing business with will have a contract they use, and homeowners’ should insist on a written contract. Your homeowners’ insurance company will want to see it.
DO NOT PAY CASH UP FRONT.* You should never pay any money upfront when you sign the contract, unless work is starting. Work starting is defined as engineers or architect doing the preliminary walkthrough for the site design or materials being delivered, anything that costs the contractor money.
Jim has addressed how and when to pay a contractor on the show before. You can listen to it here.
Know the right questions to ask:
· Does your company have general liability Insurance and worker’s comp?
· Will your company's insurance agent provide me with verification of insurance?
· What sort of warranty do you provide for work and materials?
· Is the warranty transferable to future owners?
· Does your industry require a license? If so, is the license holder on staff?
· Can your company assist in insurance claims?
· Does your company have an office?
· Does your company have its own employees, use sub-contractors, or both?
· Will I be able to remain on the premises during the repair?
· Can you provide me with a list of customers for references?
· Is it your responsibility to clean up any mess made on my property?
· Will you follow up once the job is completed to check on the quality of the work?
· Also, make sure you ask how long the current company has been in business under the same name and ownership.
* Please note: Texas House Bill 1711 prohibits a disaster remediation contractor from requiring a person to make a full or partial payment under a contract before the contractor begins work. View the full bill statement here: Texas Legislature Online.