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Hiring a Contractor: 6 Things Every Homeowner Should Know

Hiring a Contractor: 6 Things Every Homeowner Should Know

Owning a home comes with plenty of opportunities to tackle repairs and keep everything running smoothly. Some projects you can handle yourself, but others require help from a professional.

Whether you're repairing your roof, replacing windows, updating your bathroom, or starting a larger home improvement project, hiring the right contractor is an important decision.

A good contractor can help you get the job done safely and correctly. But how do you know who to trust, what questions to ask, and whether you're getting a fair price?

Here are six simple steps to help you hire a qualified contractor and protect your home and your investment.

1. Understand Your Project

Before contacting contractors, take some time to learn about the work you want done.

You don't need to become an expert! But having a basic understanding of the project will help you explain what you need and ask better questions.

Think about:

    • What needs to be repaired, replaced, or improved?
    • What materials would you like to use?
    • What is your budget?
    • When would you like the project completed?

It's also important to know whether your project requires a building permit or inspection. Contact your city's building inspections department to find out what's required before work begins.

Contractor and client shaking hands.

2. Find Contractors You Can Trust

Start by making a list of several contractors who have experience with your type of project. A few good places to look include:

    • Friends, family, and neighbors: Ask people you trust about contractors they've hired. Were they happy with the work? Did the project stay on budget?
    • Local hardware and home improvement stores: Staff may know contractors who regularly work in your area.
    • Professional trade associations: These organizations may have directories of contractors.
    • Online reviews and directories: Websites like Angi, Thumbtack, and Google Reviews can help you find options with real customer feedback.

Try to identify at least three contractors to contact.

3. Check Their License and Insurance

This is one of the most important steps! In Minnesota, many residential contractors, remodelers, and roofers are required to have a state license. Licensed contractors must meet certain requirements, including passing a qualifying examination, maintaining required insurance, and completing continuing education.

Hiring a licensed contractor also provides access to certain consumer protections, including Minnesota's Contractor Recovery Fund for eligible claims.

Some types of specialty work are exempt from the state's residential contractor licensing requirement, so check which licenses or credentials apply to your project.

Before hiring someone, verify their credentials.

Check a contractor's license through the Minnesota Department of Labor and Industry.

You can also call 651-284-5069 to ask about a contractor's licensing status or disciplinary history.

Remember: A business registration is not the same as a contractor's license.

4. Get at Least Three Written Bids

A bid is a written estimate of what a contractor plans to do and how much the project will cost. For larger projects, try to get at least three written bids so you can compare your options.

Before requesting bids, provide each contractor with the same description of the work you want completed. Each bid should include:

    • A description of the work
    • Materials that will be used
    • Estimated labor and material costs
    • Total project cost
    • Estimated start and completion dates
    • Information about required permits

When comparing bids, you don't have to automatically choose the lowest price. A lower bid might mean fewer services, different materials, or missing expenses. Look at the full picture to understand what you're getting for your money.

Three construction volunteers standing on an unfinished roof.

5. Check References and Watch for Warning Signs

Before making your final decision, do a little more research.

Ask contractors for references from previous customers, preferably people who had similar work done. Contact those homeowners and ask whether the contractor completed the project on time, communicated well, and addressed any problems.

You can also check the Better Business Bureau for complaints and look for any disciplinary actions through the Minnesota Department of Labor and Industry.

Be cautious if a contractor:

    • Pressures you to sign a contract immediately
    • Refuses to provide a written bid
    • Cannot provide required licensing or insurance information
    • Asks for the entire payment upfront
    • Offers a price that seems too good to be true
    • Tells you to skip required permits or inspections

Trust your instincts. If something doesn't feel right, it's okay to keep looking.

6. Choose Your Contractor and Get Everything in Writing

Once you've compared your bids, checked references, and verified credentials, you're ready to make a decision.

Choose the contractor who offers the best combination of experience, cost, communication, and availability. Before work begins, make sure you have a signed contract that clearly explains:

    • What work will be completed
    • The total price and payment schedule
    • What materials will be used
    • When work is expected to begin and end
    • Who is responsible for permits and inspections
    • How changes or unexpected expenses will be handled

Never rely on a verbal agreement alone. Keep copies of your contract, payments, receipts, and any important communications.

And don't be afraid to ask questions! Trustworthy contractors are willing to explain the process and help you understand what to expect.

Protect Your Home and Your Investment

Your home is one of your most important investments. Taking the time to find a qualified contractor can help you avoid unnecessary expenses, prevent future problems, and ensure your home remains a safe and comfortable place to live.

You don't have to know everything about construction to make a good decision. Start by doing your research, asking questions, and making sure you understand what you're agreeing to.

For more information, check out these free resources:

With the right preparation and the right professional, you can tackle your next home improvement project with greater confidence!

 

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