Top 10 Things to Know Before Hiring a Contractor

Know What You Want

As the property owner, you drive the process and make the decisions. This does not mean you must have all the answers about what materials to use or how to build the project. Rather, it means having a clear vision of what you want the finished product to look like and its intended purpose. Is it for entertaining, storage, or usable living space? What amenities are important to you? Be sure to have clarity on your goals for the space before hiring a contractor to assist with design.

Interview Several Contractors

Most professionals recommend obtaining bids from at least three different contractors for your project. As you meet with them, ask plenty of questions to better understand who they are. Not only will this give you insight into their personality, but it will also help you gauge the scope of your project and establish realistic pricing expectations.

Investigate Each Bid

Different contractors will offer different pricing for the same project, but the bids may not be comparing apples to apples. One contractor may submit the lowest bid but leave out important items such as insurance or permitting. A higher bid may reflect better quality and more comprehensive coverage. In most cases, you get what you pay for, so review each bid carefully.

Do Background Checks

Has the contractor worked for anyone you know? Do they have an online presence on Google or Facebook? Ask around and read reviews to evaluate their reputation. It is also important to verify that the contractor is properly licensed and insured. In Alabama, a Home Builders License is required for any project over $10,000. Adequate insurance coverage should include at least $1 million in liability.

Observe Potential Contractors’ Habits

First and foremost, evaluate how well they communicate. This is the single most important factor when you need to reach them, you should feel confident in their responsiveness. This includes answering phone calls promptly, replying to texts, and arriving at meetings on time. Are they organized? Do they take pride in their appearance and company vehicle? A lack of attention to these details may be reflected in the quality of their work.

Set and Manage Expectations

Bringing someone into your home and around your family can create challenges if expectations are not clearly established. Set ground rules regarding parking, bathroom use, language, trash disposal, and working hours. Ensuring that both you and the contractor agree on these expectations will help prevent issues down the road.

Know What You’re Paying For

Free estimates can sound appealing, but they often lack the detail required for larger projects. Any project costing more than a few thousand dollars should include a clearly defined scope of work within the estimate. This document outlines the specific tasks, materials, inclusions, and exclusions related to the project. It is essential to fully understand and agree with the scope of work before moving forward.

Know When to Pay

Ask the contractor about their payment structure. Do they require full payment upfront, or do they use milestone-based payments? While it is common to provide a down payment before work begins or to cover preconstruction design costs, never pay the full amount upfront. Red Branch Construction, for example, keeps payment terms flexible. A small down payment of 5–10% is collected at the time of agreement to begin permitting and scheduling. Progress payments are then made throughout construction based on project size, with the final payment due once the project and punch list are complete. Payment structures may vary, but your contractor should always have a clear and documented process.

Review the Agreement

A contractor who does not provide a written agreement is a major red flag. The agreement should be reviewed carefully and fully understood before signing. It may include details about warranties, schedules, responsibilities, change orders, and more. Don’t hesitate to ask questions, understanding the agreement will give you confidence and help ensure a smooth project.

Go with Your Gut

You’ve done your research and asked the right questions, now it’s time to make an informed decision. Avoid choosing a contractor based solely on the lowest price, as this can lead to frustration and costly issues. Instead, select the contractor who communicates well, offers thoughtful ideas, takes pride in their work, and is enjoyable to work with. Trusting your instincts often leads to the best outcome. Good luck on your next project!