Questions to Ask Your Contractor Before You Sign

February 24, 2009

About the Contractor

  • Are you the qualifier on your contractor’s license?
  • How long have you been licensed?
  • Has anyone ever registered a formal complaint against you?
  • Have you ever been investigated or disciplined by any state or local authority?
  • Have you ever had any legal actions filed against you or your business?
  • Have you ever declared bankruptcy?

About the Business

  • How long have you operated under your current business name? (When was your current business established?)
  • How is your business organized (corporation, LLC, partnership, proprietorship)?
  • Do you have an office or do you operate from a home office?
  • How many actual employees do you have?
    • Do you have Worker’s Compensation Insurance?
    • Will you be able to provide me with a certificate of insurance?
  • Do you have commercial general liability insurance
    • What are your coverage limits?
    • Can I be named as an additional insured?
    • Will you provide me with an insurance certificate?
  • What other construction companies have you been involved with?
  • What professional organizations do you or your company belong to?
  • Will your banker give you a good reference?
  • Can you describe the projects you’ve completed in the past 12 months?
    • Can I speak to any of the owners on these projects?
  • Can you describe the projects you have currently underway?
    • When are they scheduled to be completed?

About Project Management

  • What’s the process for obtaining plans and permits?
    • Do you include those costs in your bid?
  • Will you be physically working on this project, or will you be mostly supervising?
    • How many other projects will you be working on while you’re working on mine?
    • How much time do you expect to spend on my site in the beginning? At the end?
  • Will you have a supervisor (or foreman) assigned to this project?
    • How much time will this supervisor spend on my site in the beginning? At the end?
    • How much authority/responsibility do you give your supervisor?
    • When can I meet him/her?
  • What parts of the work will you perform with your own employees?
  • What parts of the work will you perform with subcontractors?
    • Are they all licensed?
    • Can you provide me with a list?
    • Can they provide certificates of insurance?
  • Will you give us a detailed schedule before you start?
    • How often do you update the schedule?
  • How (and how often) do you keep us informed on progress?
    • Who will be keeping us informed?
    • How often and at what points will we be able to inspect and approve the work?
    • What happens if we’re not satisfied with something?
  • What are the arrangements for billing and payment?
    • Do you provide invoices and receipts?
    • Do you invoice based on percentage of work complete?
    • Is the final payment due before the work is actually finished?
  • Do you obtain lien releases when you pay your subcontractors?
    • Will you give us a lien release when we pay you?
    • Can we have copies of the subcontractor lien releases?

About the Work

  • What are the hours of work?
  • How will workers be getting access to the project site?
  • What can you tell me about how you keep the job site clean?
  • What are your safety practices?
    • Do we need to take any special precautions to keep our children safe? Our pets?
  • What warranties or guarantees will we receive?

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