Deal with someone whose work is known. Talk to friends, neighbors, associates.

Ask for names and addresses of previous customers. Check with those people who have had work done and ask if it was satisfactory. If possible, go out and look at some work a contractor has completed for someone else.

Local building or material supply firms know the better contractors. Contractor and home-builder associations can also recommend reputable member firms.

Obtain references from material suppliers and financial institutions, if possible, to determine whether a contractor is financially responsible.

Be sure the contractor has a permanent business location and telephone number. Verify them. A contractor who operates a business out of the back of a pickup truck with a cellular telephone may be difficult to find to complete a job or fix something that has gone wrong after the last bill is paid.

Make sure the contractor has liability insurance coverage and workers compensation (if required).

Obtain at least three estimates or bids for the work you need; do not automatically accept the lowest. Remember, the cost of materials and quality will affect the bid. A low bid based on inferior materials may not be any bargain; so consider more than the price alone. Also, beware any bid substantially lower than the others.

Whether you need a contractor for general construction, plumbing, heating, air conditioning, fire sprinkler or electrical work, make sure the contractor has the appropriate license, if required (see Introduction and Licensing). You have few recourses, legal and otherwise, if you hire an unlicensed contractor. Since few unlicensed contractors have adequate insurance, they may expose you to significant financial harm in the event of injury or property damage. Although an unlicensed contractor may give you a low bid, the risks of possible financial and legal consequences you may face probably outweigh any benefits a lower bid may seem to offer.

Beware of a contractor who says he works under another contractor’s license. It is illegal for one contractor to use another contractor’s license, just as it is illegal for someone to use someone else’s driver’s license.

When you have narrowed your search down to two (2) or (3) possible contractors, call your local Better Business Bureau, your city or county building inspection department, the Consumer Protection Section of the Department of Justice (919-733-7741) and the appropriate licensing board (see Introduction and Licensing) to see if there have been serious complaints against any of them.

Finally, before you begin your project with a contractor, you may wish to consult additional information resources. The Consumer Resource Handbook put out by the federal government offers general information on making purchases and resolving complaints. To obtain free single copies, write to: