Hiring a contractor

Action 9 gets a lot of emails from viewers who’ve had trouble with home contractors. Our team put together this guide to help you the next time you hire a contractor.

Do Your Homework.
Ask friends for recommendations. Ask contractors for references.

Get a Second Opinion.
Don't automatically go with the lowest offer. Better materials can cost more. Beware of an offer that's too low.

Find a Contractor; Don't Let the Contractor Find You.
Beware of anyone who:
- shows up at your door
- says he/she has leftover material from another job
- claims to be doing similar work in your neighborhood that day

Make Sure Contractor Has a Permanent Business Location and Phone Number.
You want to be able to find the contractor if you have problems.

Make Sure Contractor is Licensed.
Make sure contractor has the right license to do that kind of job, e.g., roofing, deck construction, etc. It is illegal for a contractor to use another contractor's license (in NC).
    Search here for general (NC)
    Search here for electrical (NC)
    Search here for general (SC)

Make Sure Contractor is Bonded.
Ask for proof. A bond is sort of like an insurance policy for you. It protects you if the contractor fails to complete the job properly. It can also cover damaged or lost/stolen property.

Make Sure Contractor is Insured.
Ask for proof. Make sure contractor has personal liability, worker's compensation, and property damage coverage.

Know What Permits are Required.
A good contractor will get the permits for you before starting work. Beware if contractor asks you to get the permits.

Put it in Writing.
Make sure your contract is specific.
It should include:
- a timeline
- payment schedule
- list of materials
- how to handle changes
- warranties
- what the contractor will and won't do (e.g., clean up debris)

Limit Your Down Payment.
Plan to give a deposit that is less than 25% of the total price. If the project is a custom job that the contractor can't resell, plan to give more than 25%, but no more than 50%. Beware if contractor wants you to pay in full up front.

Don't Pay Cash.
If you have a problem, you will be able to stop payment much more easily on a credit card.