Selecting a Contractor!

It seems this question is asked most often to us by our clients, "How do I pick a "Good Contractor" for my project? We have put our heads together and have come up with these question to ask and things to look for when interviewing contractors. Please keep in mind that we write Scopes for Public Adjusters, Attorneys, Contractors and Insurance Carriers and the following points are things we have seen.

Here are the points you should be looking for in the contractor you hire:

1. Are your Contractor Estimators former Insurance Adjusters and do they use Xactimate Software?

2. Will the Contractor provide a comparative scope of work against the Insurance Scope.

3. Contractor understands the Insurance payment process, working with an Adjuster.

4. Meet the Contractor and Your Assigned Project Manager (Do You Like Them?), What is the intended date of completion (Look for accuracy, not generalities).

5. References, Ask for a list with contacts of the last 5 completed projects and call those owners! (Was your project completed as promised and for the contract amount).

6. Ask how the Contractors company is set up, Is it an Inc., Llc, 501c3, etc. This matters!

7. How many employees does the company have?. If more than 50 do they have company provided health insurance (This protects you in case they are injured on your project). If,less than 50 then more likely they do not.

8. Make sure the Contractor's license is "Active" and in "Good Standing" with your State Licensing Board.

9. Do a background check in both the "BBB" and then "Yelp".

10. Contractors bond is it current and when is the expiration dates!

11. Critical - How much work will be accomplished by company employees vs. hiring sub-contractors?

12. What sort of vehicle do the company employees drive, not the owner but the employees - It should be some sort of work truck and not a sedan - you may be surprised!

13. Does your Insurance Adjuster know of this company? (Please keep in mind the Insurance Adjuster may be biased towards certain contractors for a number of reasons).

14. CONTRACT DEPOSIT: Your contract deposit should be $1,000 or less, if more this is a red-flag. (contractor law requires contractor to perform the work before obtaining compensation for that work).

15. Have the contractor sign the contract, not some other employee! - It's your right!

16. CONTRACT - PAYMENT MILESTONES: Should be based on the work estimate (Scope), but should be something like this: 1. Contract Deposit at origination, 2. Demolition & Temp Power 3. Payment of Softgoods (Plans, Permits & Engineering) 4. Payment for Agreed "Ordered Materials" 5. Payment for foundation & Frame 6. Payment for Roof, Windows & Siding. 7. Payment for Rough-in items (HVAC, Plumbing, Electrical) 8. Payment for Interior walls/ceilings (Drywall, Paint) 9. Payment for Interior Finishes (Doors, Casing, Flooring, Countertops 10. Final Payment, due at completion.