We all like to think of ourselves as savvy and discriminating consumers and yet, now and then we all do get burned with a sub-standard product or service. Shopping for home improvement services is very much a purchase like any other. So is hiring the right company to do the work – it is a buying decision, although the one which can bear very significant consequences. Home improvement projects can be costly, but choosing the wrong people to do the work will make it unnecessarily so every time.

Here you will find three simple hints which will aid you in hiring the right and safe company to work on your home:

• How to protect yourself financially
• What questions to ask
• How to spot a questionable contractor

Hint One: Protect yourself financially!

A remodeling or building project is rife with opportunities to loose control of your expenses. Take these important steps to make sure that your wallet and your property are secure, figuratively as well as literally.

Demand a written proposal or a contract for any sizable project. The contract has to contain the following:

• Thorough and detailed description of the scope of work. Proposal must contain clear description of what is included in price and what is not. This will help you see through artificially lowered estimates and aid in comparing different bids on “apple to apple” basis.
• Price of the project – a set quote or an estimate.
• Specific way the overages will be handled. Will you be on the hook for anything the contractor will deem feasible to extract from you? Do not accept any proposal which contains open-ended provisions regarding the price.

Safeguard yourself and your property by requesting physical verification of contractor's insurance. Here is how it's done: you ask the contractor to request insurance certificates from insurance company, addressed specifically to you. Then you should receive the certificates via fax, e-mail or mail directly from the insurance company or insurance agent. Do not sign anything until you have the certificates in hand.

There are two essential kinds of insurance every legitimate contractor must maintain – General Liability insurance and Worker's Compensation. A few notes on each of these:

General Liability Insurance protects you in case of accidental damage which may be suffered by your property (house) during work process. As unsettling as it may be, a single accidental fire caused, for example, by improperly disposed rags used to wipe oil-based stain can destroy the entire house (see here). You must make sure that policy limit is high enough to cover the home and possessions – it is always better to be safe than sorry.

Worker's Compensation is also absolutely essential as it shields you from liability in case of injuries contractor's employees may sustain while working at your house. You well know that medical care can be incredibly expensive and if contractor's employees are paid in cash and are not insured, things can turn very ugly. When it comes to litigation, lawyers first go after the contractor, then after the homeowner and then after the property – that's you and your house! Maintaining Worker's Compensation is mandated to all employers by the state, and for risky occupations such as construction and remodeling it is expensive. It is not at all uncommon for people engaged in remodeling field to skirt around this requirement by not buying the insurance and paying employees “under the table”.

There is also a quite likely pitfall, related to a so-called “ghost” policy, which is called Worker's Compensation, but costs next to nothing and covers no one. These “ghost” policies are result of a strange wrinkle in North Carolina law. When you have insurance certificate in hand it is well worth it to call the insurance company or the agent and make sure that the policy is a real one and not a “ghost”. This is a common situation and they will know what you are talking about.

Hint Two: Ask the right questions

It's easy to miss something important during the meeting or estimate appointment, after all – just how much do you know about the ins and outs of building and remodeling? If you did know a lot, chances are you would not need a contractor. Here are some important questions which have to be answered:

• Who will do the actual work – contractor's own employees or subcontractors?
  If sub-contractors are used, contractor has limited control over the crew on site, it may complicate warranty service and you are likely to be paying more than you could otherwise for the work at hand.
• How involved and available will be the contractor? Will the crew on site speak English to be responsive to immediate requests when such arise?
  Questions and concerns will certainly come up during the project, possibly even urgent ones. It is important to make sure that you will be able to communicate with and be understood by the crew and have a way to reach the contractor at any time.
• What is the warranty policy?
  While warranty policies may vary, one thing is certain: the investment you make with a home improvement project is supposed to last and perform much longer than 6 months or a year. You have every reason to expect the contractor to express good will to follow up on any major issues whenever such may come up.
• Ask specific questions about the scope, phases and details of the project, anything and everything you can think of. How will the deck be attached to the house? How will the window be protected from water? Will the drywall be screwed down or nailed?
  You may not cover all the bases, but you will get a sense of how serious and knowledgeable the contractor is. Don't accept “It'll be fine” or “Don't worry about it” for an answer. If it is important to you, it has to be important to your contractor.

Hint Three: Trust your gut!

Most likely you will get to meet the contractor or his representative before making your decision. The first impression is very important and you can be sure that the project will not go better than the estimate appointment does!

If the person is late without prompt notice, rude on the phone or in person, doesn't answer the questions directly, laughs them off or changes topic – these are possible warning signs. Person coming out to do the estimate is the face of the company. If whom they send out makes you uncomfortable in any way, that is an indication of what's in store for when the project in underway. Contractor and his workers will be in and around your home, possibly for a significant period of time. You owe it to yourself to make sure that you don't let in anyone who rubs you the wrong way!

Try to evaluate how invested is the contractor into his business:

• Do they consistently pick up the phone or return calls?
• Does the company have a web-site and what does it look like?
• Are your e-mails answered promptly?
• Are the vehicles presentable and do they bear company's logo?

Watching for these signs is a good way to avoid a run-in with a fly-by-night outfit, which would be prone to make the project a bad experience.

These reasonably simple steps will help you avoid a home improvement misadventure and will greatly increase your chances of having a smooth and uneventful remodeling project. If you have any additional questions – drop me a line mail@tradesofthetriangle.com. I will be happy to hear from you.