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When Not to Hire a Contractor

From Chapter 8… pages 106 – 108

When Not to Hire a Contractor

In my real estate experience and as painstaking as the process of evaluating and hiring a contractor can be, I have found that the below criteria for hiring a contractor can act as a quick reference for the interviewing and evaluation process:

  • No license or portfolio of recent work.
  • References do not check out. Credentials do not verify. He doesn’t want to give written proposals.
  • Your intuition and instincts tell you that you may not trust the contractor alone with you in your home.
  • No proper license, no registration, no adequate general liability insurance, and no worker’s comp insurance.
  • Doesn’t possess relevant skills to your particular project.
  • Comes late to your appointment or is a no show at all.
  • No proper relevant tools.
  • Asking for large payments up front, or only want cash payments.
  • Insists that you hire him immediately, as he just finished another job. Explain to him that hiring is a process that you have to follow. Don’t succumb to high-pressure tactics. Good contractors understand they have to give you time to make proper decisions. On the ones who rush you, you need to ask yourself: what do they fear? Why are they in such a hurry, what are they running from?
  • Doesn’t seem to communicate well, like someone knowledgeable about your project would.
  • Seems to display a bad attitude, or is rude. Both could signal you may have communication challenges between you. If it’s a long project, there can be communication pain for a long time.

This list has been helpful to me as a quick checklist on who not to hire. However, as with many aspects of life, this is mainly a guide, and specific situations may demand different treatment.

Experience and knowledge will be your best driver. For example, a new contractor may be preferable to a seasoned contractor with no proper history and no references. If you can’t get a good contractor with experience, then you could hire a new contractor who interviews well. You could give him a small job for a test to see how he performs before you decide if you can take a chance on him with a bigger project. In general, if a contractor is licensed, bonded, in good standing, and many of the above criteria check out well, then consider hiring.

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