• Frank Martinez

ALL YOU NEED TO KNOW BEFORE YOU HIRE A CONTRACTOR

Updated: Apr 28


Choosing the right contractor can make the difference between a successful renovation project and a complete disaster. Finding the right contractor who will complete a project with high quality work from start to finish can feel challenging. Below are some tips to consider before hiring a contractor for your next project.


LICENSE AND INSURANCE

Be certain the contractor you are considering is licensed and insured, by checking the license on this link:

  • The license must be active and in good standing.

  • Look up a contractor license or Home Improvement Salesperson (HIS) registration to verify information, including complaint disclosure.

  • Look up a contractor license or Home Improvement Salesperson (HIS) registration to verify information, including complaint disclosure



CONTRACT MUST INCLUDE

Any project that exceeds $ 500 in combined labor and materials costs requires a state-licensed contractor and the contracts must include:

  • Work description.

  • Price.

  • Payment schedule.

  • Details of the building permit.

  • Date of start and end of work.

  • Your contract with your authorized CSLB contractor should be as specific as possible.

  • Must include the brand, model, style and quality of materials.

  • Make sure your contract has debris cleanup plans.

  • Do not sign generic contracts that anyone can get online or download from the internet. the business name.

  • Do not sign generic contracts that anyone can get online or download from the internet

  • In the case of specialized projects, your contract must also be specialized in that trade, it may also be an addendum that is added to the general contract.



THINGS TO CONSIDER

As with all contractors, avoid this:


  • Paying an advance of more than 10% of the project or $1,000 whichever is less.

  • Avoid paying in cash.

  • Don't let payments get ahead of work.

  • Always ask to verify real testimonials.

  • Ask to see the payment schedule and contracts before signing.

  • Don't fall for lower-cost contractors, experience is priceless!

  • Ensure all requests are included and the price is based on the complete project.



WORKERS COMPENSATION AND LIABILITY INSURANCE

  • California law requires employers, including those in the construction industry, to carry workers' compensation insurance, even if they only have one employee. Failure to maintain workers' compensation insurance coverage will result in a suspended license. ▶ ️Learn MORE about workers' compensation insurance.

  • California law does not requires contractor to carry general liability, but is a plus if your contractor offers at less $1,000.000 per incident. Failure to maintain general liability coverage could be very harmful because your home insurance company will assume responsibility for all damages to your property.▶ ️Learn MORE about general liability insurance.



QUESTIONS TO ASK A CONTRACTOR

Ensure all requests are included and the price is based on the complete project.


YEARS IN BUSINESS.

How long have you been in business?

LICENSES AND ACCREDITATIONS

Are you licensed by the state or a trade organization?

PROJECT MANAGEMENT Who will be assigned as project supervisor for the job?

PROJECT TEAM Who will be working on the project? Are they employees or subcontractors?

PROJECT APPROACH What is your approach to a project such as this?

SIMILAR PROJECT EXPERIENCE How many projects like mine have you completed in the past year?

REFERENCES May I have a list of references from those projects?

REFERRALS/SUPPLIERS May I have a list of business referrals or suppliers?

CONTRACTOR REPUTATION What percentage of your business is repeat or referral business?

TRADE ASSOCIATIONS What local and/or national trade associations do you belong to?

INSURANCE COVERAGE Does the company carry workers compensation and liability insurance? (Always verify this information by calling the agency.)



All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consulting an attorney. CGH Solutions does not provide any legal advice on any matter discussed on a blog, except in a formal engagement including, but not limited to, the execution of CGH Solutions' formal legal services agreement and with respect to specific factual situations. No blog constitutes a guarantee or prediction regarding the outcome of any legal matter discussed on the blog or any representation.


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