Working with Construction Contractors | How-to Guides for running your business from Business.com

Hiring independent contractors for projects can save homeowners time and effort — carefully selecting and instructing construction contractors can save even more.

Asking independent contractors for references and accreditation such as a contractor's license is crucial. Agreeing to a contract that clearly lays out what work will be performed along with the project timeframe and budget is also important, whether you're hiring general contractors to manage an entire home renovation or building contractors to install new cabinets.

Steps to working with construction contractors include:

1. Finding construction contractors or general contractors.
2. Checking references for independent contractors.
3. Verifying a contractor’s license.
4. Writing contracts for building contractors.
5. Making changes to contracts with independent contractors or general contractors.

Action Steps
The best contacts and resources to help you get it done

Find construction contractors

Aside from personal referrals from colleagues and friends, a number of online sources are available to help you find independent contractors. Get estimates from a few building contractors to help you narrow down your pool of construction contractors.

I recommend: Find carpentry, brick, fence-building and other independent contractors by filling out a brief form at Service Magic. Contractors.com and The National Association of the Remodeling Industry will match you with certified construction contractors, or you can post your construction project at Cybertonic’s NeedContractor and receive up to four competitive bids within 48 hours.

Verify your contractor's license

It's important to get references from past clients and confirm potential contractors have the proper contractor's license and insurance. Most states require building contractors to be registered at the state level and sometimes at the local level. Many states also require building contractors to have liability insurance to protect homeowners in case of a worksite injury.

I recommend: At the Contractor’s License Reference Site, you can click on your state to find out if your contractor is licensed in your state. DoItYourself.com offers links to state organizations that can verify a contractor’s license in the Midwest, Northeast, South or West.

Have building contractors sign written contracts

A project contract can protect you if construction contractors fall behind schedule or underperform. The contract should clearly state the project's start and end date, a payment schedule for supplies and work performed, a detailed supplies list, warranties for any materials and workmanship and a clear definition of the work that will be performed by construction contractors.

I recommend: The sample contract at the 411 Referral Network provides a framework for creating your own contract, and The American Institute of Architects offers homeowner contracts for use with independent contractors for around $10.

Make changes to contracts with independent contractors in writing

Construction contractors know that delays can occur due to unforeseen weather, material shortage or other problems. Any changes in the project's timeframe or scope should be handled through a change order, a written approval to change or add to the original work described in the contract.

I recommend: The Minnesota Department of Transportation offers a downloadable sample change order form including verbiage for payment, material and quantity changes that you can customize for your own use.

Make sure construction contractors obtain the proper permits

Before beginning construction, make sure your independent contractor has obtained the proper local building permits for the project to avoid any fines.

I recommend: To confirm building contractors have met the proper building codes, check your local codes via Permit Place.

Hire general contractors for big projects

For large construction plans, such as building a new home or undertaking a massive renovation, hire general contractors who manage entire projects. General contractors' duties can include working with architects, scheduling inspections and hiring and supervising subcontractors.

I recommend: Find general building contractors through the Associated General Contractors (AGC) of America's search engine or via ServiceMagic.

Tips & Tactics
Helpful advice for making the most of this Guide

Be wary of independent contractors who cannot provide references, pressure you to sign a contract immediately or want you to pay for the entire project in advance.
The National Association of the Remodeling Industry recommends staying in close contact with building contractors to avoid delays.
Always check references to see if building contractors meet project deadlines.
Make sure any subcontractors have a contractor's license and are insured.
Most building contractors require a down payment before starting work -- one-third to one-fourth of the total estimated project cost is common.

The official source of Working with Construction Contractors is
the Contractors page at Business.com

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