Tips On Hiring a Contractor
By Jason Smith

It seems today, there are many small contractor businesses out there to choose from. How do you find the right one for you? Below, I’ve put together a few tips you may want to consider when hiring a contractor for your home. 

Ask for References:

When a contractor comes to quote a job for you, make sure you ask for references of past and current jobs. Get at least 5 updated references and ask questions like:

• Did they start and finish on time?

• Did they give a payment schedule?

• Was everything in writing?

• Were there any surprise or additional costs?

• Was the contractor easy to work with?

Personal Tip: It speaks on their behave to belong to an organization who holds a code of ethics. 

Insurance:

Any contractor hired by you to do work in your home should have insurance. Don’t be afraid to ask for proof of valid insurance. A contractor should have business and liability insurance before starting any work in your home. This protects you, the homeowner, as well as the contractor working in your home. The industry standard is $1 or $2 million liability plus WSIB coverage. 

Permits and Licenses:

When having work done that requires a license (electrical, plumbing, heating & air conditioning etc.) make sure their license is up to date and valid. Remember to ask for a building permit when required.  

Written Contracts:

It is good business to detail how the job is to be carried out in a written contract. Material used and who is responsible for each part of the job should be specified as well as a list of any sub-contractor to be used. Included in the contract should be a payment schedule and a clause for work change orders (this is in case the customer changes their mind or a situation arises where the cost of a job will vary). This contract should be agreed upon, dated and signed by both parties. 

Terms of Payment:

Set some guidelines. You have expectations of the job and the outcome so rather than choosing a payment schedule based on time, remember to set the payment schedule based on the progress of the work. 

For example: 

• 15% initial upfront payment

• 10% when framing is complete instead of at completion of week 1

• 20% when plumbing and electrical is complete instead of at completion of week 2

• 20% when drywall tape mud and sand is complete

• 25% when painting, and trim work is complete 

• 10% 30-day holdback (imperfections fixed)

It is a good idea to set timelines for each step. I found this type of payment schedule to work well because each objective is set in advanced and it must be met before money is exchanged. Most of all don’t be seduced by low prices, as it is usually an indication of the quality of the workmanship you’ll receive. Cheapest usually means cheapest so be careful. As you use these tips remember that doing your homework will surely help you have a better homeowner/contractor experience. 

Jason R. Smith
Trustworthy Trades
"Trades Helping Trades Succeed"
www.trustworthytrades.com  Phone: 905-626-1734

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