Choosing A Contractor

CHECK THE CONTRACTORS LICENSE

Is the contractor properly licensed? In California, any job that costs $300 or more for material and labor must be performed by a contractor who holds a current, valid license from the Contractors State License Board in the specialty for which he or she is contracting. Ask to see the contractor's pocket license and some additional form or identification. The name on the pocket license should be the same as the contractor or the business name under the contractor is working.

It is illegal for one contractor to use another contractor's license, just as it is illegal for someone to use another's driver's license.

When you establish that the contractor's or company's name matches what appears on the pocket license issued by the Contractors State License Board, call the Board's toll-free number, 1-800-321 CSLB (327-9707 in the Sacramento area), and ask if the license is valid.

Finally if the contractor is operating with a valid license, you may also want to find out if they are working with is a member of a professional or trade association that has a code of ethics or standards for their trade. Find out if members of the association have pledged to arbitrate disputes. You may want to contact the local chapter of the association to see whether it will act as an intermediary in case of disputes or arrange for an impartial arbitrator. If you want an arbitration clause in your contract, make sure the contractor you are considering will agree to arbitrate any disputes that arise out of the contract.

CHECK YOUR CONTRACTORS REFERENCES

Ask your contractor for local references, and call to see if they were satisfied with the contractor's work. Skilled contractors will be proud to take credit for their work. If possible, go out and look at finished projects. Some consumers even try to find jobs in progress to see how the contractor works and to speak with the homeowner about work habits, inconveniences, and the sensitivity of the contractor to the living needs of the homeowner. Remember, the person you hire to work in your home will be a part of your home until the job is completed.

When speaking to the contractor's customers, ask such questions as: Did the contractor keep to the schedule and the contract terms? Were you pleased with the work and the way it was done Did the contractor listen to you when you had a problem, and seem concerned about resolving it? Did the contractor willingly make any necessary corrections? In addition to talking with customer references, obtain references from material suppliers, sub contractors and financial institutions, if possible, to determine whether the contractor is financially responsible.

Ask the contractor for the addresses of his or her business location and telephone number, and verify them. A contractor who operates a business out of the back of a pickup truck with a cellular telephone or from their home may be difficult to find to complete a job or fix something that has gone wrong after the last bill is paid.

INSURANCE

Ask your contractor if his company is insured against claims covering workers' compensation, property damage, and personal liability in case of accidents. Ask to see a copy of the certificate of insurance, or ask for the name of your contractor's insurance carrier and agency to verify that the contractor has insurance. In California, workers compensation insurance coverage for contractors is required by law.

BIDS

A bid is an offer to do work. It is advisable to get at least three written bids using identical plans specifications so you can compare prices and contractors.

GET COMPETITIVE BIDS FOR THE PROJECT

Do not automatically accept the lowest bid. Make sure all bids are based on the same set of specifications. Discuss the bids in detail with each contractor and make sure you understand the reasons for any variations in price. Sometimes a higher price may be worth it, if the materials to be used are of higher quality or the work is more extensive. Beware of any bid substantially lower than the others do. It indicates the contractor has a mistake or is not including all work quoted by his or her competitors. You may be headed for a dispute with your contractor if you accept an abnormally low bid.