Guide To Select The Right Contractor

Remodeling, building a new home or room addition is a very stressful process. If you choose wisely, the contractor will make the process as easy as possible and provide your dream home. If you choose poorly, be prepared for trouble.

1. Ask the contractor for his/her CSLB (Contractor State License Board) pocket license. To avoid illegal, unlicensed contractors and scams, verify this is a current license at www.cslb.ca.gov. Just because a license is on the truck, business card or bid does not make it valid. Now check to see if active or suspended.

2. Verify the Workers Compensation Insurance is current at www.cslb.ca.gov. Without a current policy you are responsible for anyone hurt in your home.

3. Request proof of current General Liability Insurance. What is the amount of the policy? From $1 to $2 Million is acceptable.

4. Reference recent jobs. This will help you make a decision on cleanliness and quality of work. Are you able to speak to the homeowners? Ask for 3 references.

5. Check the company’s rating with the BBB (Better Business Bureau) at www.sandiegobbb.org. Look for an A or A+ rating.

6. Look at client reviews at sites like www.kudzu.com to see what others have to say about the company.

7. Ask how long has the company been in business?

8. Ask how many remodeling projects have they done similar to your project? Ask for pictures to get ideas.

9. Ask how many remodeling projects will be worked on while working simultaneously on yours?

10. Ask for a detailed estimate broken down by line item and allowances. This helps you know where your money is going and alleviates broken promises.

11. Ask how much profit and overhead the company charges. Industry standard is 20% - 35%.

12. Ask how much of the project will be subcontracted.

13. If subcontractors are used ask for lien releases. This protects you from getting a mechanic’s lien put on your home after paying the General Contractor. Homeowners are responsible for making sure every person/contractor is paid in full.

14. Ask for warranty information. How long is the labor under warranty?

15. Ask if permits are needed for your project. It depends of the project scope and if permits are required you will need plans.  

16. Ask for start dates and completion dates.

17. What are the payment schedules? California law only allows for a deposit of 10% or $1000, whichever is less. Progress payments upon completion of certain scopes of work are the norm. Final payment is not due until full completion of the project.

My suggestion is to complete your due diligence and get 3 bids. As in most purchases the lowest bid may not be the most qualified for the project, and the highest may simply be unreasonable. Complete the checklist above and listen to your instincts, not the sales pitch.

Susan Lawson is the Business Development Manager for Guedes Construction and the Community Network Coordinator for the non-profit organization Soldiers’ Angels. She can be reached via email for Guedes at susan@guedesconstruction.com or for volunteering and information on how to support our military through Soldiers’ Angels email Susan at ctlca26@gmail.com