Wednesday, June 15, 2011

What To Look For When Hiring A Contractor / Construction Company

As we continue to examine the rebuilding process for Joplin tornado victims, and have touched on the potential for crooks that could take advantage of Joplin residents, it’s a good idea to know just what you should be looking for as you examine potential contractors for your project. Even if you don’t live in Joplin, you could still be victim of a scam artist, who will walk away with your money and leave your project unfinished and in a dangerous state.

Financial Commitment
As mentioned in the post on hiring a local contractor, you want to make sure that the person or company you hire is well-established financially. The way payments are approached is a good indicator. Ask up front whether a down payment is necessary and how much if so. As a general rule, a contractor should not need more than 1/3 down when it comes to large projects; projects under $10,000 should need no down payment in the beginning, but rather, payments after stages of the project are complete.

Registration
Check out a company’s registration on all fronts to make sure it is legit. Start with state and city licensing. You can look up Missouri business registrations on the Secretary of State website. Check the status of a Springfield business license on the city website. Not only should you look at the status of the company’s business registration, but how many years it’s been in good standing. The longer a business has a good status, the more trustworthy it is.

Check the Chamber of Commerce for the area the business is located in. While not all businesses are members of their local chamber, those that are members are typically more financially secure and are focused on the community. In other words, usually only legitimate businesses will bother becoming chamber members because there is a lot of accountability there. The following are the business directories for area chambers:


Another resource to check out is the Southwest Missouri Better Business Bureau Accredited Directory. Again, not every business applies for accreditation with the BBB, but those that do are committed to providing trustworthy and loyal service because they are held accountable.

An additional option is to search BBB reviews, keeping in mind that finding no results is not necessarily a bad thing. In fact, finding results on the reviews search means that the business has been reported to the BBB for failing to provide adequate service in a substantial way (i.e. scamming someone).

References
Ask every contractor you talk to for at least five references, including contact information. If the contractor or company is unable to provide you with references, then it likely doesn’t have first rate testimonials available for you – a clear indication you don’t want that company on the job.

Once you have references, don’t just take the contractor's word for it that they are legit and have good things to say – call every one of them. Get as much information as possible by asking questions like the following:


  • Rate overall satisfaction with the contractor and the job on a scale from 1-10

  • Was the project finished in a timely manner or did you have to deal with delays?

  • Did the workers clean up after themselves and maintain a safe worksite?

  • What was the difference between the final cost of the project and the estimate the contractor initially provided?

  • Was the contractor you initially spoke with directly involved with the project?

  • Would you use this contractor/company again?


Insurance
Ask for proof of insurance. In fact, you may even ask for a copy of the contractor’s insurance policy so that you know the company has optimal coverage, and not just the bare minimum.

Presence
Look up the company’s website (it’s a red flag if there isn’t one). The quality of the website is a reflection upon the business. In this day of booming technology, if a company doesn’t have a well-crafted website with informative content, then marketing and branding are not a priority. If these things aren’t a priority, then the company isn’t looking to maximize success.

Also look into the contractor’s social media presence. These days, a Facebook business page or LinkedIn account is just as critical to marketing and branding as a website. Not to mention the fact that once a company’s Facebook page is well established, it will be plastered with comments from clients, which means you have direct insight into how the company treats people.

These are simply starting points. Meet with contractors one-on-one and make sure that your personalities mesh. If you can’t be heard and won’t get along, then it simply doesn’t matter how great the references are or that the business is BBB-accredited. You, the customer, should always be the priority.

No comments:

Post a Comment