Hiring a Contractor

With the current cost of construction, labor and materials, there's a real temptation to make home repairs and improvements do-it-yourself projects. There will be times, however, when using a contractor is advisable.

With the current cost of construction, labor and materials, there's a real temptation to make home repairs and improvements do-it-yourself projects. There will be times, however, when using a contractor is advisable.

The perception that many people have is that a contractor is a person who physically performs construction work. And in many cases this is true. Many contractors do the work. But think about the word that describes the person we are talking about "contractor."

Webster describes "contract" as "an agreement between two or more persons to do something." Thus, a contractor is a person who makes agreements or contracts. A plumbing contractor is a person who makes contracts related to plumbing work and an electrical contractor is a person who makes contracts for electrical work.

According to the contractors' state license board in one of our largest states, most contractors prove to be competent tradespersons, but usually fail because they lack business expertise. The state currently has over 235,000 licensed contractors from whom to draw statistics.

According to a report published in a home-improvement industry trade journal the fatality rate among home-improvement contractors is ninety-six percent in the first five years of business.

It's important to know why contractors (construction business owners) fail. The letters we receive from disgruntled homeowners often start with, "He was such a nice guy at first!" Knowing why contractors fail gives insight into which aspects of their background to investigate.

In a recent column we wrote about the importance of getting an itemized bid. In doing so, we were touching on the importance of doing business with a contractor who is as proficient at contracting as at performing the work. A comprehensive bid is an indication that the contractor is thorough and understands the importance of informing the consumer.

Contractors who provide itemized bids often write them in "constructionese" or builder's jargon. If you receive an itemized bid and you don't understand it, take the time to study it until you do, or demand clarification in writing. Experts agree that proper planning costs more at the outset, but helps to eliminate unnecessary expense in the long run. And a contractor who doesn't make a profit will likely not be around when a warranty repair is needed.

How good a planner is your contractor in business as well as construction? How long has he or she been in business? What bank does the contractor use? From whom does the contractor buy? Does he pay his bills? Who insures the contractor? If there is a license law in your state, is the contractor properly licensed?

We have an easy way for you to find out. Drop us a line care of Associated Press News features, New York, NY 10020. Include a stamped, self-addressed business size envelope and we'll send you a copy of our "How to Hire a Contractor" form with instructions on how to use it on the house.

See more weekly projects in the Contractors category!