Owning and Renting Property

6 Red Flags to Watch for When Choosing a Home Contractor

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When looking for a contractor to do a home renovation or remodeling project, you want someone you can rely on to get the job done at a reasonable price. Watch out for these six red flags so you don’t hire a bad one.

An experienced and reputable contractor should always provide you names of satisfied customers and examples of excellent work.

A big red flag is asking for “cash-only” payments upfront. Or someone who needs you to pay everything before they even start the job.

Before any money changes hands or work begins, you should receive a bid that outlines the cost of labor and materials, timeline, payment terms and a detailed description of the work being done.

Any contractor you work with should be licensed and registered to do business in your state. Qualifications vary by location, so check with your local building department for specific requirements to look for.

All contractors should carry general liability insurance and workers’ compensation insurance.

If the contractor won’t elaborate on things like who is going to be doing the work, be careful. Contractors should disclose any subcontractors they’re using for certain parts of the job.

Keep an eye out for these six red flags and you’ll avoid the headache of dealing with a bad contractor.

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