Selecting A Contractor
When Selecting a Fence Company to install or repair your fence…be sure to ask these 7 Questions:
1. What is the full name and address of the company?
All Contractor Selection Guidelines start with this question because most dissatisfaction involves low-bid undercapitalized contractors.
Automatically reject any contractor without a permanent place of business.
If the contractor is not permanently established, how can you be confident he will complete the work? How can you be confident he will be in business if the work needs service in the future? What do you do if the project fails and you are financially harmed or the contractor is not financially responsible?
The courts are full of dissatisfied Owners with worthless judgments against insolvent contractors.
While there is no way to guarantee any business is financially stable, there are some tell-tale signs, and you can take to protect yourself, and assure your satisfaction.
Visit the contractor’s place of business. Does it look like it has been established there for a long time? Does it appear that the equipment, manpower, and wherewithal is available to complete your project in a professional and timely manner?
Automatically reject any bid from a contractor without substance.
Do not be swayed by a personable contractor or his attractive low price. It is not worth the risk. Select only a contractor that is financially committed to the business. Select someone you can call if a problem arises in the future.
A professional contractor will have no problem giving you a tour of the facilities and provide whatever financial proof is required for your peace of mind. Don’t be timid about asking. The professional respects these questions and knows that time is being well spent with an intelligent buyer.
2. Does the company carry insurance and is the coverage adequate?
This is the second most important question. Owners have been financially harmed by uninsured or inadequately insurance contractors.
Automatically reject any contractor without proper and adequate insurance.
A contractor should provide you with a Certificate of Insurance for Comprehensive Liability, that protects you in the event of an accident.
Contractors may also carry other forms of insurance, such as health insurance and vehicle insurance. Do not be confused by these policies. Do not allow the contractor to pass them off as his proof of “contractors” insurance.
Call the insurance company and verify coverage.
Contractor insurance policies are for one year and unscrupulous contractors have been known to modify the dates. Check carefully the dates on the Certificate Of Insurance. Is it current?
A tell-tale pattern of an uninsured or underinsured contractor is the low-bid. Be very wary of the low-bid. Also be wary of multiple low bids. You may have several uninsured contractors bidding the project.
Today, insurance to protect the workers and your property is a significant cost of a construction project.
The contractor, working without insurance, generally has no assets and nothing to lose, so you as the Owner, are totally exposed to any losses.
A professional contractor will readily provide you with a Certificate of Insurance and phone numbers you can call for verification.
Job Site Safety: Safety violations are now causing projects to be shut down and penalties are levied against involved parties. Some Owners have been stuck with incomplete projects due to violations and the contractor’s unwillingness to pay fines or return to the site. In some cases, the Owner can be classified as the employer and they can or have been found responsible for the fines.
3. How Long Has The Contractor Been In Business?
Needless to say, the more experienced the better. Under five years is often a tell-tale sign of an unstable business. Most contracting businesses (90%) fail within the first five years. Examine new business with extra care before awarding the project.
Check references carefully. Current references are only valuable to see if the Owner is happy with the contractor’s work, but only long term references are the proof of actual performance of the contractor’s work.
Most failed construction projects do not happen quickly, but deteriorate over a period of years. New project references should carry equal weight in the decision making process vs. long term projects.
A professional contractor will gladly provide references and want you to speak with his past customers.
Automatically reject any contractors who can not provide a reference list of customers.
4. What is the contractor’s track record for handling complaints?
Automatically reject any contractor who says they never had a complaint. The best of contractors find themselves in disputes for one reason or another.
Ask the contractor for the name of a problem account and explanation as to how they rectified the complaint.
Be forewarned that many quality contractors, in business for a long period of time, and with thousands of completed projects, are exposed to disputes. The question is, not if they have had disputes, but what was done about the dispute after it occurred.
5. What is the company’s workmanship warranty?
Typically, contractor workmanship warranties are for one year or more. Longer warranties are not more valuable than shorter warranties. The length of the warranty is less important than the intent and ability of the contractor to stand behind his warranty. The professional contractor often performs well beyond the written warranty period because he knows that this is what builds customer loyalty and referrals.
Automatically reject any contractor with an unbelievable warranty. The warranty is just a sales tool to that contractor and you don’t know what other “bill of goods” you have been sold.
The long-term warranty is provided by the manufacturer. It is critical to be assured that the product will be installed according to the manufacturer specifications, or there will be no warranty regardless
Professional contractors will have no problem providing this proof, in fact, they will usually present their credentials before being asked.
6. Specific questions for specific projects.
Compliance with local ordinances - Question the contractor about what is required. Contact the local building department for verification. Question if the permit is included in the cost and who is responsible for obtaining the permit.
Product Selection - Make sure the proposal includes a specific reference to the product and color you have chosen. Your proposal will be your proof of purchase in later years.
Manufacturer Warranty Specifications - If the project is to be warranted by a manufacturer, confirm that the agreement states that the work will conform to the manufacturer specifications.
Clean-Up - Call for daily clean-up to help minimize safety issues or exposure.
Payment Terms - Schedule, terms and method of payment should be clearly detailed in the agreement. Establish an agreement regarding retainage if a certain portion of work is left incomplete or there is a “punch list”.
Preliminary Inspection - Plan to meet with the Job Foreman who will be responsible for your satisfaction. Make sure he fully understands the specifications and promises made by his company. Establish the condition of the property before the work starts in the event there is property damage during construction.
7. Are you an accredited member of the Better Business Bureau?
The Dallas Better Business Bureau is a great place to start when investigating a contractor and making sure you are dealing with a reputable company. You can either call the BBB directly at (214) 220-2000
or go online at www.bbb.org or http://www.dallas.bbb.org/WWWRoot/SitePage.aspx?site=50&id=d11ccf1b-9cab-4373-b0f8-2e8ad14de653 If you go online you can learn if the contractor has had any complaints and learn if they were resolved.
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