How to Pre-Qualify a Contractor

Check with the licensing agency or state bureau of contractors to see if any complaints have been filed against the contractor. If complaints exist, dig deeper to see how the complaint was resolved. The relationship between a contractor and the client is a two-way street and a complaint may have been filed without much justification.

Interview the contractor and ask for a list of former clients. Contact the people with whom the contractor has worked and ask if they would hire the contractor to do a project for them again. Find out if there were any cost overruns and the cause. Sometimes a project does not go as smoothly as planned, but a contractor who submits a low bid and needs additional money for unanticipated supplies may not be the best choice for a project.

Find out if the contractor has a portfolio of projects you can review. Before and after pictures speak loudly about the quality of the work that the contractor does. An HVAC, plumber or electrical contractor is not likely to have a visual portfolio, but flooring and painting contractors may have taken before and after pictures to demonstrate their expertise.

Ask the contractor about bonding. A bond is a type of insurance that covers the project, and if the project is botched or unfinished, the bond pays the homeowner for the cost of finishing the project and for the inconveniences. Licensed contractors usually need to have a bond and insurance before the state or local jurisdiction issues a license for the contractor to practice. If you letting the contractor inside your home, ask for personal references or even run a background check if the contractor will be around your family.