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Contractors: 10 hiring mistakes young woman looking regretful

Ten common mistakes to avoid for your home improvement project

After investing money, time and care in a large home improvement project, you don't want to regret anything. You want to be satisfied with the results.

If you need a contractor, you want to have the best team, the best experience, and, most importantly, the best final results. That success all starts and ends with hiring a licensed and insured contractor you trust. Still, some common mistakes can leave you in the lurch if you don’t cover your bases.

If you’re a homeowner looking to hire a general contractor, avoid the “woulda-coulda-shouldas” by taking note of these 10 common mistakes made when hiring a contractor.

1. Not doing research

Hiring a contractor can be complex. It is important to check their experience, credentials, references, licenses and performance. Remain organized and informed to be successful.

BBB Business Profiles organize contractor reviews, star ratings, complaints, photos and videos. They also list how many years the business has been in operation.

Use the BBB Business Directory to view the profiles of local contractors in your area. You can filter your results by several criteria, such as viewing only BBB Accredited Businesses.

View the video below for tips on how to use customer reviews to help you find the contractor for you.

How to use customer reviews to find a trustworthy contractor

2. Not checking licenses, insurance, or permits

Across different states and regions, general contractors are required to maintain certain licenses, permits and certification. Anyone you work with should be up to date on their insurance and certifications and secure the necessary work permits before the hammers fly.

You don’t want to be held liable (or sued) for an accident on the job site. You don’t want your project to get shut down for not having a permit. You want hazardous materials or substances to be handled safely.

Across different states, provinces and regions, general contractors are required to maintain certain licenses, permits and certifications. For some specialized trades, this can extend to certifications to handle hazardous materials like mold, asbestos or waste products. Anyone you work with should be up to date on their insurance and certifications and secure the necessary work permits before hammers fly. 

BBB Accredited Businesses must be licensed, bonded, and insured in all instances where it is required for their industry or region. This competency licensing must be current and is necessary to maintain BBB Accreditation. Look for the BBB Seal to pinpoint those businesses that prioritize trust.

3. Not hiring a designer or architect

Sure, you have the vision for your home renovation, and your contractor has the know-how to tackle the work, but a designer or architect’s expertise could be critical. 

Projects involving entire room remodels, reimagined floor plans, elevations, and additions require professional insight. These professionals provide valuable information regarding the project's aesthetic, functionality, and structural integrity. They’ll also work with you to add the personal touch that fits your aesthetic, scope and budget. 

Check out trustworthy designers and architects near you on BBB.org

4. Not hiring a professional

In some cases, simple home improvement tasks can absolutely be tackled by you and the people you know.

But consider carefully before trusting a friend or family member to take on a project best handled by a professional. Their work could have a negative impact on your relationship if you have a bad experience.

When you hire a general contractor who is experienced, licensed, and insured, you are better protected if something goes wrong.

5. Not gathering multiple bids

Be smart by comparing your top candidates' services, quotes, and skillsets.

Evaluate the advantages and disadvantages of the firms you are thinking about. This will help you make a knowledgeable decision. 

Use the Get A Quote tool to gather quotes from businesses in your area.

Why you should use BBB's Get A Quote tool

6. Not having a signed contract

For deadlines, scope of work, warranties, materials, payment terms and beyond, you can always go back to this document.

Even when a project is completed, keep your contract and any relevant receipts, plans or paperwork should you need to reference them in case disputes or misunderstandings arise.


 

Don't sign any agreement before doing these things

  1. Make sure you read and understand everything before signing. 
  2. Confirm the contract includes contact information, start and completion dates
  3. Identify a detailed description of the exact work to be done, any material costs, payment schedule, and warranty information. 
  4. Specify who will obtain necessary building permits and who is responsible for clean-up
  5. Make sure all verbal promises are included in the contract. 
  6. Ask how much work will be subcontracted and ask for information on the subcontractors. 
  7. Ask questions if you do not understand any part of the contract. 
  8. Never sign an incomplete or partially blank contract.
  9. Hang on to your contract for future reference.
     


 

7. Not paying responsibly

If a contractor only accepts cash and doesn't give a receipt, that’s a huge red flag. Just like having a contract in hand, having an official transaction history is essential.

When you pay with cash, there’s no paper trail. Instead, use checks or credit cards to track your project expenses for tax purposes, contract or spending disputes, and even fraud investigations. And always get a receipt for payment.

Similarly, if a contractor wants payment in full up front, that leaves you in a vulnerable position if the project goes off the rails. Consider a payment plan that gives you room to review the work while it’s being done and after it’s completed.

Learn more about what payment details should be outlined in your contract before work begins.

8. Not considering more than the price tag

While price is important, paying lower prices might result in poor craftsmanship, cheap materials and ultimately, a bad end result. Consider all angles – especially regarding things like reputation, experience and communication – when making big decisions.

Related article: How to make your next home improvement project a success

9. Not communicating well

Responsiveness is one of the main ingredients in a trustworthy relationship; that’s why it’s included in BBB’s Standards for Trust.

Pay careful attention to the communication habits of your candidates during the interview process, and be upfront about your communication needs as you explore what it will be like working with them.

When a contractor is genuine, open and communicative with you, they prioritize your trust, paving the way for a smoother project experience.

10. Not having an emergency budget

You’ve heard the stories: “We needed to hire asbestos removal experts.” Or: “We didn’t know we’d need to install a load-bearing steel beam!”

Your project scope is always susceptible to things that are just out of your control. Get peace of mind by creating an emergency fund for these unforeseen circumstances.

Related article: BBB Tip: Create a budget and stick to it!


Start With Trust

No one wants to have regrets after pulling off a big project. If you’re here, you’re already in good shape as you carefully consider the first big steps for your project.

That time and research always pay off when you prioritize trust by using BBB as a resource before, during and if any problems arise, even after your project.

Good luck!

Additional resources for your home improvement project: