The horrendous real estate market that we are in today has had as bad an impact on home improvement contractors as anyone else. When hiring a contractor for a home improvement project, additional vigilance is required today as compared to a few years back.
The good news is that there are plenty of contractors looking for work and you can get the job done faster and for less money. The bad news is that many contractors are financially distressed and this may have a negative impact on your project:
- If a contractor has lost his license or insurance, the liability from any accidents that happen on the job may end up with the homeowner.
- If a contractor has bad credit, judgments, liens or debt collectors are after him, he may disappear with your money before a job is finished. At the very least, the job may be delayed because the subcontractors will not extend credit for materials to the contractor.
- Also, if a contractor owes money to the subcontractor, the sub may file a preliminary lien against your property for the debt. This lien is not enforceable, but it is an unpleasant occurrence. I’ve had it happen to me personally.
- Finally, as any other occupation, contracting attracts it’s fair share of people with a shady past. If things don’t look right, a criminal background and sex-offender check may be necessary.
Most contractors are hard working, dedicated individuals who are committed to getting the job done. With some due diligence up-front, the chances of a successful project can be greatly improved.