7 Must-Ask Questions When Hiring a Contractor

I just take a good sniff to determine whether I trust a contractor or not, however, if you're a small nosed human I suggest you follow the Federal Trade Commission's suggestions on what questions to ask a contractor (make sure you also get the right answers).

1. How long have you been in business?
Look for a well-established company and check it out with consumer protection officials. They can tell you if there are unresolved consumer complaints on file.

2. Are you licensed and registered with the state?
While most states license electrical and plumbing contractors, only 36 states have some type of licensing and registration statutes affecting contractors, remodelers, and/or speciality contractors. The licensing can range from simple registration to a detailed quailification process.

3. How many projects like mine have you completed in the last year?
Ask for a list. This will help you determine how familiar the contractor is with your type of project.

4. Will my project require a permit?
Most states and localities require permits for building projects, even for simple jobs like decks. A competent contractor will get all the necessary permits before starting work on your project. Be suspicious if the contractor asks you to get the permit(s). It could mean that the contractor is not licensed or registered as required by your state or locality.

5. May I have a list of references?
The contractor should be able to give you the names, addresses, and phone numbers of at least three clients who have had projects similar to yours. Ask each how long ago the project was completed and if you can see it. Also, tell the contractor that you'd like to visit jobs in progress.

6. Will you be using subcontractors on this project?
If yes, ask to meet them, and make sure they have current insurance coverage and licenses, if required. Also ask if they were paid on time by this contractor. A "mechanic's lien" could be placed on your home if your contractor fails to pay the subcontractors and suppliers on your project.

7. What types of insurance to you carry?
Contractors should have personal liability, worker's compensation, and property damage coverage. Ask for a copy of insurance certificates, and make sure they're current. Avoid doing business with contractors who don't carry the appropriate insurance. Otherwise, you'll be held liable for any injuries and damages that occur during the project.