by Laura Beth Caldwell

Created on: February 06, 2009   Last Updated: February 14, 2009

Your home is perhaps your greatest investment. It is therefore important to protect that investment by taking certain considerations when hiring a contractor to perform remodeling projects on your home.

The first thing any homeowner should look for in a contractor is expertise. That expertise is defined not only by the number of years the contractor has been in business but also by the various licenses and certificates that they hold. You want to be sure that a contractor you are considering for an electrical project is actually a licensed electrician. Likewise, you want a licensed plumber to handle projects that pertain to the plumbing of your home. It is quite common for homeowners to hire "general contractors" to perform remodeling and home improvement projects, however what they do not realize is that these general contractors will often hire subcontractors that specialize in various fields such as plumbing or electrical work. The price of the subcontractor is then "baked in" to the general contractor's cost. Home owners who are savvy will seek out contractors who specialize in the particular work they need performed, thereby cutting out the "middle man".

In addition to licenses, homeowners also want to be sure the contractors they are considering are insured. A contractor's insurance should include both general liability as well as workman's compensation insurance. Additionally, before any work is performed, the homeowner should request a copy of the contractor's insurance certificate.

The contractor's scope of work and the homeowner's costs should be clearly defined in a written proposal or contract. A homeowner should be wary of any contractor that is not willing to put their scope of work in writing. In addition, when considering the cost of a remodeling project, the contractor with the lowest price may not necessarily be the best choice. In today's tightening economy many contractors are finding themselves in bidding wars with one another. Sometimes contractors will bid too low in an attempt to get the job. This inadvertently puts the homeowner in the position of accepting work that is not up to par, or worse- spending more money to correct mistakes down the road.

Finally, as with anyone seeking employment, references must be taken into consideration. A thorough research of your contractor's past clients will prove to be time well spent in ensuring you have made the right choice for your remodeling project. The contractor with the biggest advertising budget may not always be the best choice. A satisfied customer on the other hand is the best advertising there is.

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