Contractors can make or break a project, and a surprising number of problems come from skipping the basics. The cheapest quote is rarely the lowest cost once change orders and rework are added.
A few checks up front protect your money and your house.
Aubre J. Stacknick is a Global Real Estate Advisor with Piatt Sotheby's International Realty in Pittsburgh, PA, helping buyers and sellers across Western Pennsylvania see a home through a builder's eyes. I have hired contractors for my own projects and managed them for clients, and the process below is the one I use.
What should you verify first?
- Registration. Pennsylvania has a home improvement contractor registration law, and contractors doing this kind of work are expected to register. Ask for the registration number and check it with the Pennsylvania Office of Attorney General.
- Insurance. Ask for a certificate of liability insurance, and ask whether the contractor carries workers' compensation for employees. Ask for the certificate directly from the insurer if you can.
- Licensing for specialty trades. Electricians, plumbers, and HVAC technicians may need specific licenses or local registration. Ask what applies in your township.
- Permits. Ask who pulls permits and who pays. A contractor who says permits are not needed on work that clearly needs them is a warning sign.
How many quotes should you get?
At least two, and ideally three, for any sizeable job. Give each contractor the same scope in writing so the quotes can be compared. Ask for line items for labor, materials, and any allowances.
Look at the differences. A quote far below the others may leave something out. One far above may include extras. Ask why.
What should a written contract include?
- A clear scope of work, with the materials and products named
- The total price and a payment schedule tied to progress, not a big payment up front
- Start and finish dates, and what happens if they slip
- Who pulls permits and handles inspections
- How changes are priced and approved in writing
- Warranty terms for workmanship and materials
- Cleanup and disposal
- Proof of insurance
Read it before you sign. If the contractor will not put it in writing, that is your answer.
How should you check references?
Ask for the names of recent clients, and call them. Ask whether the job stayed on budget and on schedule, how problems were handled, and whether they would hire the contractor again. If you can, look at finished work in person.
Look for reviews, but treat them as one input. A contractor with a long record and a few reasonable complaints is more believable than a perfect score with nothing behind it.
What are the warning signs?
- Pressure to sign today, or a discount that disappears tomorrow
- A large cash payment up front or a request to pay only in cash
- No written contract, or one that is vague
- No insurance, or reluctance to show it
- Telling you permits are not needed when they are
- Not returning calls before the job starts
- A quote that will not itemize
How should you manage payments?
Tie payments to milestones, such as materials delivered, rough-in complete, and final completion. Keep a final payment until the work is done and inspected. Pay by check or another traceable method and get receipts. Be wary of paying for work that has not been done.
Ask for lien waivers as you pay, which show that subcontractors and suppliers have been paid. This protects you from claims later.
What about contractors for a house you plan to sell?
Choose projects that matter to buyers, and document everything. Keep the contract, the permits, the receipts, and the warranties in a folder. Buyers and their inspectors ask for them. Before you spend, read What Should I Inspect Before Selling an Older Home? 5 Major Systems to Check and Should I Renovate Before Selling My Pittsburgh Home?.
What about contractors for a house you plan to buy?
After inspection, use contractors to price the repairs before you make or finalize an offer. Ask for written quotes from licensed or registered contractors, and use them in your negotiation. For how I think about fixer-uppers, read Fixer-Upper vs. Renovated Home in Pittsburgh: Which Should You Buy?.
What are the common mistakes?
- Hiring on price alone
- Skipping the written contract
- Paying too much up front
- Not checking registration and insurance
- Letting changes happen without a written change order
FAQ
Do contractors in Pennsylvania have to be registered?
Pennsylvania has a home improvement contractor registration law. Ask for the registration number and check it with the Office of Attorney General.
How many contractor quotes should I get?
At least two, and ideally three, using the same written scope so the quotes can be compared.
How much should I pay up front?
Keep it small, and tie later payments to milestones. A large up-front payment is a warning sign.
What should be in a contractor contract?
Scope, price, payment schedule, dates, permits, change-order rules, warranty, cleanup, and proof of insurance.
If you are planning work before you list or after you buy and want a builder's help scoping it, book a 30-minute call. Bring the list.
