My top 10 tips and tricks to hiring a contractor. How to find the RIGHT one!

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[00:00:28] Eric Goranson: This is the honeymoon period. This is that period of the contract. That everything should be going beautifully from here on out until everything's done. The blue tapes off the wall, the checks are cleared. Contractor's gone. This is the least stress you will have in this homeowner contractor relationship, period.

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[00:01:15] Eric Goranson: com for more information and a way to contact the show. This is something that I got another request for from a bunch of people this last week, and I said, we're going to do a show on it this weekend. My top 10 tips to hiring a contractor. Now, this could be somebody that's an HVAC contractor. It could be a handy person coming over to do some touch up work around the house, or it could be a major remodel you're trying to track down and start the process with.

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[00:02:08] Eric Goranson: And yeah, you can go back and check an episode for that. Maybe I'll share that up on social media. And talk about how that happened and how this stuff can be prevented with hiring the right contractor. And of course, doing that research because people like this, there are warning signs and we're going to talk about that here today.

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[00:02:58] Eric Goranson: You've got all these different [00:03:00] rules and there are certain places in the country where they don't really even regulate contracting that much. And so that really leaves you as a homeowner. is a place to be a victim for that small percentage of bad contractors. And so today I'm going to really try to help you walk through and help you show a best practice.

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[00:03:38] Eric Goranson: You want them to have insurance. You want them to have a bond. And here's why. If they go running off with your money, you can collect on the bond. If they make a major mistake in your house and flood it, the insurance is going to cover it. Now, this is where some of the biggest mistakes as a homeowner can be to hire what I call the Chuck in the truck, the, Oh, I'm a handyman and I'll do [00:04:00] it for you.

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[00:04:24] Eric Goranson: The water line or the sewer line, or even worse, the gas line, that could be millions of dollars of liability that just landed in your lap. And if they're not licensed, bonded, insured, and you hire them as a homeowner, there are your personal employee. So here's where this gets to be a really big deal. If you hire, I'm going to make a name up ABC general contracting.

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[00:05:10] Eric Goranson: They are hurting that contractor. Their workers compensation insurance is going to cover that and they're covered. If you hired Chuck in the truck to come over and do that roofing job and they fall off the roof. Break their back. They're paralyzed and they get life flighted out of there. That is your bill.

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[00:05:50] Eric Goranson: If they are stuck right smack in the dab of being a contractor and they weren't licensed and they're paralyzed for the rest of your life, this could cost you [00:06:00] everything. And the first thing they're going for is your insurance. But that's where it gets sticky. Sometimes you're not covered in that instance because you're there.

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[00:06:30] Eric Goranson: Guess what? It's expensive for you to fix if they're not licensed, bonded, and insured. So these are all things that I want you to make sure that you're covered with because this gets crazy. On the cost side of things. So make sure now the other thing is, is make sure that too, and this is depending on the States in my area, it's state regulated in some areas, it's local city or county or township regulated.

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[00:07:19] Eric Goranson: So you can make sure and track it down in my area. It's really easy because I'm in the state of Oregon. We have a lot of Oregon listeners. I can just go over to the Oregon CCB. I can look on the website. I can look them up. I can get on the phone and call into the Oregon CCB and say, Hey, I'm looking up ABC general contractors.

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[00:07:57] Eric Goranson: that can help you search and figure it out. [00:08:00] So that's a big one right there. Now next up here, You got to do your research. Make sure these are real companies. I have seen, Fake contractors, Show up, They put a magnet on the side of their car that they ordered online. They've got business cards, And they're using somebody else's contractor's license.

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[00:08:50] Eric Goranson: Make sure that they're at the time that you get that you're going to sign. For instance, if you're like, okay, I'm going to hire this company, we're rocking with this. Make sure that the [00:09:00] day you're signing that contract with them, That they have all their insurances and bond because that way, if that's there, generally you're covered moving forward.

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[00:09:30] Eric Goranson: And now when we come back, I've got one of the most important ones here outside of being licensed, bonded and insured to make sure that you're protected as a homeowner, we'll do that just as soon as around the house returns. Don't go anywhere.[00:10:00]

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[00:10:30] Eric Goranson: Welcome back to the around the house show. The next generation of home improvement. Thanks for joining me today. If you're just Jonas on the national radio program or the streaming shows that you see out there, you can find out more about us at around the house, online. com. And you can also give us a call in the studio for more help on your problems.

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[00:11:14] Eric Goranson: Then I tell you what, we have got a boatload of videos for you and we cover everything from new products to everything else. It is so much fun with all the new stuff we've got out there. So we are at 469 videos before today and growing, so we're almost at 500 videos out there. And we have got some great stuff.

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[00:11:54] Eric Goranson: And also we talked about Shoshugibun, the Japanese Ancient art of finishing [00:12:00] wood with flame and how you can get a finish. That's well 75 to 100 years old if you do it correctly and using the right wood So there's a lot of cool stuff going on over there. You can find that at around the house online. com Pretty easy there so we've been talking about my top 10 tips to hiring a contractor and how important this is now one of the most important things Is the detail and the quality of the contract and payment schedule?

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[00:12:53] Eric Goranson: It needs to be the more detail in the contract, the more each one of you. Are less likely to [00:13:00] have a confusion of what the job site expectations are. So hear me out here. And this is a big one. I want to see what, for instance, on a kitchen remodel in the last segment we were talking about last hour, we're talking about kitchen remodels.

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[00:13:36] Eric Goranson: So to me, you need to have a very broken down estimate. So everybody understands because here's where the problem is. New kitchen faucet. All right. Is that a 29 one that they bought off of Amazon? Is it a 12, 000 one that was handmade? Which is it? Is it someplace in between? Nobody knows until it's written down in the [00:14:00] contract.

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[00:14:18] Eric Goranson: Because you want that done. So many States, great example, many States, many municipalities have laws of what those contracts should be written like, is there a lead paint addendum because your house was built before 1978, are there warnings of asbestos, what is in this project, what is in it? What do you got?

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[00:14:58] Eric Goranson: They've got a really well run [00:15:00] business, but we're trying to weed out the bad ones here, right? That's all we're trying to do is weed out the ones that we go, ah, these guys are not up to the job. So that's what we're trying to keep off of our projects as homeowners. So the first thing that I look at too, is there is a way for.

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[00:15:44] Eric Goranson: So the problem there is, is that can get ugly for you as a homeowner if somebody gets hurt or killed. So if they have people out at your job site that are saying they're employees of ABC general contracting, I'm making that name up again, But [00:16:00] if they're employees out there, you need to make sure, do your quick research and make sure that they are insured, because guess what?

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[00:16:23] Eric Goranson: Weeding out those people that you don't want to be working with. And that's the ones that are skirting the rules that are trying to save a buck here and there, but liability wise, it could cost you. So that's another one right there. Now, another one is if you, again, this comes down to whatever your local licensing agency is, but I want you to take a look at the complaints and lawsuits that they do have.

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[00:17:08] Eric Goranson: That have held hostage contractors really good ones because they said, Hey, if you don't give me a free 5, 000 of the work, I'm going to leave you a bad review online and say how horrible you did. I have seen this level of online extortion from more than one homeowner. It's a horrible thing to do. So it's commonplace in some areas.

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[00:17:45] Eric Goranson: The last decade have lawsuits for, let's say, employees not getting paid lawsuits for overbilling outside of the contract, you start digging in and go, holy smokes, [00:18:00] this is never good. And so that's where you start to look and do that research and go, okay, this is well above and beyond. And when in doubt, if this is a big project and you look at it and go, wow, there's a lot of legal stuff.

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[00:18:33] Eric Goranson: It's just ridiculous and they're still out there doing business. We'll talk more about that in my top 10 ways to hiring a contractor and what to be careful for When around the house returns don't go anywhere[00:19:00]

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[00:19:13] Eric Goranson: Welcome back to the Around the House show, the next generation of home improvement. Thanks for joining me today. Of course, if you've been listening to the podcast, you've been listening all through this. But if you're out on the national radio show out there across the United States, thanks for joining us today.

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[00:19:44] Eric Goranson: We're on Facebook, Instagram, Twitter. You've tracked me down on link LinkedIn, and we do have our around the house nation close group. We can share up some stuff out there, show your project. And we've got a really kind group over there, which is something that we've got a lot of professionals and some of your favorite TV [00:20:00] show hosts on television.

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[00:20:25] Eric Goranson: What happens is, is that lumberyard protects itself on the account. If this contractor does not pay off that material, they can come over and put a lien on your house. So you might get a notice in the mail. Again, it depends on state to state how it goes. And this is how it goes in the Pacific Northwest here is that that lumberyard or company will send via certified mail to the homeowner, a intent to lean saying, Hey, if this guy doesn't pay the bills, we're gonna put a lien on your house that shows up at your house.

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[00:21:15] Eric Goranson: You're released. So these are things you need to keep track of to make sure that you don't get stuck with bill on materials you've already paid for. And so that's the thing you have to be careful with is making sure that the people that are out buying stuff with your, that's getting delivered to your property is what it is.

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[00:21:51] Eric Goranson: And so you just want to make sure that you're covered in that. So pay attention to those liens intent to liens and the lien releases to make sure they're taken care of. [00:22:00] And when you're done, make sure and chat with people to make sure that you've got it all dialed in. So you can make sure that at the end of the project, That the building permits have been signed off and there's no liens that could potentially be on your project So next one up here and i'm sorry to all the radio stations out there that have these guys as sponsors But i'm gonna make somebody mad probably right now, but I do not trust For good information, the better business bureau.

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[00:22:55] Eric Goranson: And you could have a business that is never had a complaint. [00:23:00] It's been around for years on end. Everything's good. And they have a C plus or a C minus because guess what? They didn't pay the 750 or whatever it is in your area to the better business Bureau to be accredited. And so since you're not paying them, they knock you down.

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[00:23:40] Eric Goranson: But guess what? They wanted me to pay that. So I look at it and go, oh, C minus what happened? Call 'em up. And they're like, if you're accredited, we will just give you that a plus. And I'm like, really? So then I told 'em that I was a guest on a radio show in in Seattle, Washington at the time. Hours later I've got an A plus.

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[00:24:19] Eric Goranson: If you have a state governing agency that governs contractors and you're a homeowner, maybe that's a place that you can let help work through those disputes that you can't hammer out between two parties. Before it gets into a legal matter. So take a look, but the BBB, I take that out. They're not part of my decision making process.

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[00:24:57] Eric Goranson: I think it was 2020 or one of those. [00:25:00] Investigative shows did a whole thing on them and you had, uh, they were explaining why Disney Wolfgang Puck and all these different people were so against them because they had the same experience. And they all had Fs and that's because the BBB was not getting paid from them.

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[00:25:43] Eric Goranson: You're rubbing each other wrong. They're getting frustrated. You're getting frustrated warning. This is the honeymoon period. This is that period of the contract that everything should be going beautifully. From here on out until [00:26:00] everything's done, the blue tape's off the wall, the checks are cleared, contractor's gone, this is the least stress you will have in this homeowner contractor relationship.

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[00:26:32] Eric Goranson: And that's okay. You can do that. It's okay to go. This isn't working as a kitchen designer. I would always sit there and say, Hey, if I didn't let go of a couple of contacts a year of, of contracts, of, of kitchens I designed out because they were difficult to work with and it was going to get worse, it's better to walk away and go.

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[00:27:11] Eric Goranson: If it's a kitchen remodel, they could be there for 90 to 120 days. You want to have a great trust. You want to have everything going smoothly. Don't go any farther until you have this dialed in. And that's a really smart one. And I don't care if the, if you're going to save money, it's never worth it.

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[00:27:48] Eric Goranson: If they're doing a remodel inside your house, I want you to have these people. I want you to see them on a, on a Tuesday morning. Go, Hey, how's it going? Versus, Oh my gosh, can't believe they're here yet. They're here already. I [00:28:00] want them to leave. It's never healthy. It's going to be a troubled project from start to finish.

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[00:28:22] Eric Goranson: I want you to realize sometimes if you do the work It could cost you more than if you just let them do it round the house. We'll be right back We'll wrap up our top 10 tips for hiring a contractor after these important messages. Don't go anyway[00:29:00]

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[00:29:18] Eric Goranson: Thanks for tuning in. I am here to help you with your house. I'm Eric G and we're today. We're talking about how to hire a contractor. What are my top 10 tips to help make this process easier so you can find the right contractor and one that's going to get the job right. For the most reasonable amount of money.

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[00:29:57] Eric Goranson: I'm going, Whoa. What [00:30:00] do we have going here? And here's why in most, if not all areas, if you're supplying the materials, their warranty will only cause the labor. So let's say if you're supplying the materials and you didn't get the materials list, right? Let's say it's a shower system and you got products that are not compatible and they install it.

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[00:30:42] Eric Goranson: I want to make sure that they are buying those materials. Now, sometimes you'll hear somebody say, well, you know, and here's another warning sign I see with this too. And this is something to pay attention to. You will see contractors sometimes dodge. Lumber yards, the permit office, because [00:31:00] they either don't have credit or at the permit office, they're not licensed or bonded and they're going to get nailed by going down there, so they won't do it.

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[00:31:28] Eric Goranson: So whether that's 15 percent or 25%, awesome, that's their job and they should. Now here's the thing, they're probably getting, like on cabins, they might be getting a 15 or 20 percent discount. They might be getting out a discount on stuff. So that discount should generally speaking, somewhat wash its way out because they're getting that contractor discount.

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[00:32:17] Eric Goranson: Or do something there now they're on the hook for that versus you might be on the hook to have to go buy new material and then they're going to provide the labor to do it again. So you see what I mean? This is where you got to be super careful to get not caught in the trap of, Oh, why don't you just go buy it and save the money?

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[00:32:52] Eric Goranson: Okay. For that, if one of those boxes was pulled wrong, you ordered it correctly, or it didn't show up correctly, or it's missing parts, [00:33:00] are you going to jump out of your important management Zoom meeting to go drive across town to go get parts while that plumber's making a few hundred bucks an hour sitting there waiting for you to do that?

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[00:33:29] Eric Goranson: It gets you a better warranty in most situations So what is the warranty? What is the required warranty? That is the minimum for your State, city, township, county, whatever that is. And then what is the warranty that they offer? Do they just offer the minimum? What is that written warranty? What are they responsible for?

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[00:34:08] Eric Goranson: So understand the laws. Understand what the responsibility is. And that's part of that buying the materials and letting them do it. Get the discount, let them get the discount market up. I mean, they don't need to make, they need to cover their costs, right? They need to make sure there's a little profit in there.

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[00:34:41] Eric Goranson: If you're buying materials and they're not warranting it because guess what? You bought it. You're the purchaser. They're not going to cover it. So that's a huge one guys right there. Now the other thing that I would lean on when I'm going on checking to hire a contractor, call around, make sure they've got [00:35:00] references.

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[00:35:25] Eric Goranson: Well, that's a great reference, right? So this is where you can save some time and money by going off of people that have already. Wrist it that you trust. How does it work? All that stuff. It's so funny. I have one contractor that has gone through so many of my friends and coworkers for that same reason.

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[00:36:02] Eric Goranson: And that's a really smart thing to do right there. And the other thing is, is, you know, if you're hiring a painting contractor, if you're hiring a, a contractor, it's okay to ask the people who's your favorite painter to the paint store, not the home center, but the paint store. Who's your favorite. You're at the local lumberyard, the local hardware store.

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[00:36:38] Eric Goranson: There's easy ways to jump online. Take a look, see if you can track them down. And, uh, make sure that if they've got, uh, you know, each state is different, each area is different. So follow the rules as best you can and do what you can. There are so many great contractors out there that do fabulous work. You just want to make sure you're finding them versus the [00:37:00] handful of the other ones out there that are preying on the general public.

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[00:37:25] Eric Goranson: Who is their go to people that they love to work with? You might find the best dream team between a designer, architect, landscape architect, pool designer. Whatever they're doing, who is their dream people to work with? That's usually the easy ones that take care of the clients. So feel free to lean in on them to find out, you know, how's this going to work?

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[00:38:05] Eric Goranson: But I also look to see how the bid is explained out the level of detail, the more detail, the more they probably understand the process. So that's where that can save you a ton of headaches because those headaches will cost you in the long run. So make sure you got that and then understand what manufacturers are going in there.

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[00:38:43] Eric Goranson: Don't do a bunch of background checks. Don't expect this. But, uh, and especially with the lead referral, I don't like jumping on websites to have contractors contact me because those guys are selling you, you right there. When you jump onto those different lists out there on [00:39:00] those referral sites to get a quick free estimate, they sold you to a handful of people.

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[00:39:21] Eric Goranson: All right, everybody Have a great rest of the week Thanks for tuning in to around the house for more information about us. You can find us at around the house online. com Have a great and safe weekend