General Contractor

• 1). Talk to people you trust who have hired general contractors. Gather leads from lumberyards, architects, home inspectors and real estate agents. Contact online services, such as ImproveNet.com and the National Association of Home Builders' Remodelers Council (nahb.net/remodeler_working), or trade groups like your local Remodelers Council branch.
  
  
• 2). Go online or telephone your state's contractor licensing board to verify credentials and confirm that a contractor's license is up to date. You'll be able to type in their license number and get information directly. Note that there are several sub-categories of licenses for various specialties; requirements vary by state. Also call the local building inspection department and ask what they think of a contractor's work. Contact your local or state consumer protection office or Better Business Bureau (bbb.org) to find out if the contractor has any unresolved complaints on file.
  
  
• 3). Identify several contractors. Confirm that they and their subcontractors are licensed and bonded. Describe your project and ask if they've handled comparable jobs in the past year. Check their availability for your intended time frame. Discuss your budget. Narrow the field to those available contractors who impressed you most.
  
  
• 4). Ask for names and numbers of current and former customers. Interview them about each contractor's strengths and weaknesses, and ask how the job went. Was the quality of the work and materials what you expected? Was the project completed on time and within budget? During work, did the contractor keep you informed? Did the crew and subcontractors treat your property and family respectfully? Would you hire him or her again? Ask a customer from four or five years ago how the job held up.
  
  
• 5). Solicit competitive bids from at least three contractors. Contractors will use the architect's blueprints or construction documents to make an accurate bid. (See How to Hire an Architect.) If there are significant differences between bids, ask why. A lowball bid won't end up costing the least if you soon have to replace poor-quality materials or shoddy workmanship.
  
  
• 6). Hire a licensed contractor for any job over $500 in value (laws vary by state). Contractors know the building codes; only they can give bids and are liable for the work they do. If an unlicensed contractor is hired, you accept responsibility for any damage. Discuss the contractor's guarantee or warranty programs. If something seems amiss, go elsewhere.
  
  
• 7). Ask for the payment schedule. Execute a written contract specifying the work to be done, estimated start and finish dates, total cost and payment schedule. A detailed contract protects both you and the contractor. Accept informal letters of agreement for jobs costing $1,000 or less.