Questions to Ask a General Contractor BEFORE Hiring Them
1. Is the Contractor Licensed? Are they licensed in the community they are going to be doing work?
A business license issued by the City of Campbell River may not cover me for working where your home is.
2. Does the Contractor have Liability Insurance?
This is insurance that will cover someone if they get hurt on your property as a result of something the contractor did on the job site. It will also give you coverage if, for example, your house burns to the ground due to something that was done during work on your project. If they don't have insurance, you run the risk of this going through your home insurance.
3. Does each Sub-Trade have Liability Insurance?
Each sub trade who works on your home should have their own Liability Insurance which covers the same as above. Again, if not you run the risk of incidents going through your home insurance. The good news is, your General Contractor should be checking that all the sub trades they provide have this and WCB. If you hire someone independent of the contractor, the responsibility is on you to make sure they have these coverages and they are up to date. Ask for proof.
4. Do the Contractor and Sub Trades have Worker's Compensation (WCB)?
WCB covers workers who are injured on the job site. Again, if people working on your project don't have coverage you run the risk of it going through on your home insurance. Ask for proof.
5. What is your Contractors background and experience for the project you are hiring them for?
Keep in mind, the only people qualified to do electrical/plumbing/heating/gas work are qualified electricians/plumbers/heat/gas work trades.
6. Are Qualified Trades being used on your project?
No doubt you can save yourself money using unqualified trades but consider the trade off. Is it worth having your home burn down due to incorrect electrical or your home flood due to an unqualified plumber? In these situations your home insurance may not even cover the incidents. Check with your home insurance company.
7. How will the project affect your current home insurance?
Additions and major renovations may require Course of Construction insurance, you need to check with your home insurance company prior to the start of the project to make sure you have enough coverage and the proper coverage for your project.
8. Are permits required for your project/parts of your project?
Make sure they are in place BEFORE your project starts. A General Contractor should be able to take care of this for you but make sure you know before your project starts.
9. Is the Contractor up to date on products and building techniques for your project?
10. Does the Contractor have a registered GST number to charge you tax?
Not everyone who charges you GST is remitting it to the government. Get a GST confirmation letter for close to the date you are paying the invoice, it will show the registered company name and if they are registered with the government to collect and remit GST. I f a company cannot provide you with this letter, do not pay the GST until they do. They may just be pocketing the 5%.
11. Can the Contractor provide you with multiple references?
Lastly, as always, our advice is to do your due diligence as homeowners who are looking someone to work on their home, especially a general contractor. Pick several contractors to interview (ask people you know for references, local building stores), meet with them, ask for references and actually call the references and finally, if you have questions, ask them...remember, there are no stupid questions!
"There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper and the people who consider price only are this mans lawful prey" by John Raskin
1. Is the Contractor Licensed? Are they licensed in the community they are going to be doing work?
A business license issued by the City of Campbell River may not cover me for working where your home is.
2. Does the Contractor have Liability Insurance?
This is insurance that will cover someone if they get hurt on your property as a result of something the contractor did on the job site. It will also give you coverage if, for example, your house burns to the ground due to something that was done during work on your project. If they don't have insurance, you run the risk of this going through your home insurance.
3. Does each Sub-Trade have Liability Insurance?
Each sub trade who works on your home should have their own Liability Insurance which covers the same as above. Again, if not you run the risk of incidents going through your home insurance. The good news is, your General Contractor should be checking that all the sub trades they provide have this and WCB. If you hire someone independent of the contractor, the responsibility is on you to make sure they have these coverages and they are up to date. Ask for proof.
4. Do the Contractor and Sub Trades have Worker's Compensation (WCB)?
WCB covers workers who are injured on the job site. Again, if people working on your project don't have coverage you run the risk of it going through on your home insurance. Ask for proof.
5. What is your Contractors background and experience for the project you are hiring them for?
Keep in mind, the only people qualified to do electrical/plumbing/heating/gas work are qualified electricians/plumbers/heat/gas work trades.
6. Are Qualified Trades being used on your project?
No doubt you can save yourself money using unqualified trades but consider the trade off. Is it worth having your home burn down due to incorrect electrical or your home flood due to an unqualified plumber? In these situations your home insurance may not even cover the incidents. Check with your home insurance company.
7. How will the project affect your current home insurance?
Additions and major renovations may require Course of Construction insurance, you need to check with your home insurance company prior to the start of the project to make sure you have enough coverage and the proper coverage for your project.
8. Are permits required for your project/parts of your project?
Make sure they are in place BEFORE your project starts. A General Contractor should be able to take care of this for you but make sure you know before your project starts.
9. Is the Contractor up to date on products and building techniques for your project?
10. Does the Contractor have a registered GST number to charge you tax?
Not everyone who charges you GST is remitting it to the government. Get a GST confirmation letter for close to the date you are paying the invoice, it will show the registered company name and if they are registered with the government to collect and remit GST. I f a company cannot provide you with this letter, do not pay the GST until they do. They may just be pocketing the 5%.
11. Can the Contractor provide you with multiple references?
Lastly, as always, our advice is to do your due diligence as homeowners who are looking someone to work on their home, especially a general contractor. Pick several contractors to interview (ask people you know for references, local building stores), meet with them, ask for references and actually call the references and finally, if you have questions, ask them...remember, there are no stupid questions!
"There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper and the people who consider price only are this mans lawful prey" by John Raskin