How Do I Hire a Contractor or a Handyman?

source: FrontDoor via Rafter Tales

Contractors can make or break your home. And finding the right person for a job isn't as easy as grabbing the yellow pages and making a call…it takes legwork!

Knowing who to call for your job is just as important as the job itself.

There are several different type of contractors: general contractors, subcontractors, such as plumbers and electricians, and handymen.

A general contractor characteristically takes care of big projects that require several different project skills – they'll hire and supervise all subcontractors, obtain permits for purchasing materials, and be the single point of contact for the homeowner.

Subcontractors typically work under a general contractor, but you can hire them directly for a specific task, such as replacing a toilet or furnace, or installing a kitchen sink.

Handymen are usually jacks of all trades – skilled in several different areas, but not to the same level as subcontractors. They can accomplish odd jobs around the house, like hanging doors or unclogging a drain.

Use our guide to help you figure out which contractor would work best for you.

Below are How-Tos, Videos, and Find a Professional links to help you learn more about how to hire a contractor for your home.

How To Choose and Hire a Contractor or Handyman

1. Get recommendations from friends, neighbors, and local businesses.
   Begin by asking family and friends if they know of or have used a good contractor on their own home. You can also check with the National Association of the Remodeling Industry for a list of members in your neighborhood.

2. Call the contractor to find out more information.
   Find out more specific information from each contractor. Ask questions: do they have references or a client list, how many projects do they typically have going on at one time, can they handle the size of your project, and, if a general contractor, how long have they been working with their subcontractors? You can find out quite a bit about their operations and how smoothly your project will go.

3. Meet with the contractor face to face.
   Contractors should be able to answer all your questions acceptably and in a relaxed way. Make sure they put you at ease and communicate well – they will be your primary contact for your project and you need to feel comfortable interacting with them.

4. Check for complaints against the contractors you seem to like, and check out each contractor's liability and workers' compensation insurance, as well as all references.
   For official complaints, look them up through the Better Business Bureau. Call their former clients to see how their project progressed – ask if you can come by to see the finished result.

   Ask the contractor if you can visit a current job site to see how they work – does it look safe? Is everyone on the job considerate and cautious with the property? And be a stickler about insurance – ask for proof of coverage, and then call the insurance carrier to verify the coverage is up-to-date. This protects you!

5. Get quotes and set a payment schedule.
   Ask contractors to break down the variety of costs: materials, labor, and other expenses. Typically, materials account for about 40 percent of the total cost of the job. The rest covers overhead and profit margin, somewhere around 15 to 20 percent. It may signal a problem if a contractor wants half or more than half of the bid up front – they may be having financial troubles or may be worried that you won't pay after the job is done.

   A good payment schedule to follow would be a 10 percent sign-on with equal payments of 25 percent evenly timed throughout the duration of the project. The last 15 percent can come when you're happy with your results.

6. Put everything in writing!
   The contract should detail everything in the project: the payment schedule, the work schedule (what time they'll get there in the morning!), liability insurance and workers' compensation insurance, a start and end date, the materials and products they will be using, clean-up after the project is done, product warranties and workmanship guarantees, and a requirement that the contractor obtain lien releases, which protect you if he doesn't pay his bills, from all subcontractors and suppliers.

Think beyond price. Don't feel pressured to accept the terms of a contract if you're not comfortable with it.

And ask about and understand your cancellation rights – federal law requires a contractor to give you written notice of your right to cancel a contract within three business days if you signed it in your home and in the presence of the contractor.

Videos

When Hiring a Contractor, Check the Subcontractors, Too
A couple thought they'd done everything right when they hired a contractor to install a new roof on their house. But after paying the contractor, they were threatened with a lien against their home.

source: KomoNews

Hiring a Contractor 101
The Virginia Association of Realtors talks about hiring a contractor to work on your home.

source: VA Assoc. of Realtors on Vimeo

DIY Network's Choosing the Right Contractor
Do your homework before selecting a contractor for your next home project.

source: DIY Network

Help Finding a Professional

Find a professional to help you complete the remodel, or fix the furnace!

ServiceMagic Find top-rated home improvement contractors in your area. Includes more articles, tips, videos, and photos on home improvements projects. Angie's List Find detailed reviews on roofers, plumbers, house cleaners, and more.

Contractors.com Find a licensed contractor and get estimates for home improvement projects. 1-800-contractor.com A directory of screened home improvement contractors in your area.