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Hiring a Home-Improvement Contractor: A Quiz

More Homeowners are deciding to remodel and renovate rather than move. Whether you're planning to add a powder room or a master bedroom with a fireplace and vaulted ceilings, checking out your contractor is the first step to a successful project. Before you sign a contract or make the first payment, take this simple test developed by the Federal Trade Commission. It will give you a better idea of what you can expect from your contractor and the home-improvement process.

  1. An advertisement in the "Home Improvement" section of the Yellow Pages is your assurance that a contractor is licensed and reputable.

  2. All states require home-improvement contractors to be licensed.

  3. Your state licensing agency can verify that the contractor you're considering has the appropriate licenses, if required and that they're current.

  4. Contractors should carry what type of insurance?

    5. personal liability

    worker's compensation

    property damage

    all of the above

  5. Comparison shopping should be based on?

    6. reputation and price

    reliability and experience

    price only

    A and B

  6. When comparing estimates, makes sure each one is based on:

    7. the same set of plans

    the same set of specifications

    the same scope of work

    all of the above

  7. You should expect to pay for a written estimate for your project.

  8. A well-written contract should include the contractors name, address, phone number and license number, if required. It also should specify:

    9. the payment schedule for the contractor, subcontractors and suppliers

    an estimated start and completion date

    the cancellation policy

    how change orders will be handled

    all of the above

  9. A change order is a written agreement to change the work described in the original contract. It could affect the project's cost and schedule.

  10. In most circumstances, oral contracts are as enforceable as written agreements.

  11. If you sign the contract in your home or at a location that is not the seller's permanent place of business, you have three business days to cancel the deal.

  12. You should expect to make payments when you:

    13. sign the contract

    get a regular invoice weekly, monthly or at milestones

    sign a change order

    order a custom-made item

    all of the above

  13. You should avoid making the final payment or signing an affidavit or final release until you are satisfied with the work and have proof that subcontractors and suppliers have been paid.

  14. If you get a loan for your home-improvement project, you should have the lender make out the check to the contractor.

  15. If you use your home as security for a home-improvement loan and you don't repay the loan as agreed, you could lose your home.

Source: Federal Trade Commission
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