I had lots of ideas about what qualifications for our contractor that we wanted before we began searching for one. Of course these are evolving ideas and as we experience and learn more than our ideas change.
For us and most people an ideal contractor will be one who shows up on time, does their work in a professional and clean manner and does it on budget? Is this too much to ask for? In many cases people dont have a personal relationship with their contractors so what type of qualification will make you believe they will do all the above?
You can never be sure. Many projects will go sideways for many reasons related to the contractor and not related to the contractor.
I looked for years of incorporation under the same name, proof of insurance (general liability) and proof of workman compensation. Than I looked at references and I called several of them. An interesting contractor mentioned to me that people only give the references of all the jobs they did right but none of the jobs that didnt go well. So when you look at a list of references, is that list complete and are there gaps in the list where no work was referenced? ie if they built house x for Joe in 2013 and y for Smith in 2015 what did they do in 2014? We considered larger companies to be more reliable than smaller companies although I’m not sure this is true. Larger companies also have the ability to fight any contract disputes and take control of the job away from you.
All work should be warantied. Registration in a home warranty program is another way of insuring the contractor is legitimate. The waranties of individual companies is probably only worth as much as how long they take to declare bankruptcy and are probably hard to enforce if they dont. Even government or industry regulated home warranty programs are no guarantee of good performance and there are many stories on the internet that when the house is built and a warranty issue comes up, the warranty program does the minimal amount of work necessary to satisfy the warranty.
What guarantee would I like to see? I would like to see when you give a contractor a deposit, that contractor than gives you a letter of credit or performance bond for the same amount of money that says if the contract is not satisfied under condition x,y and z than you get that money back. It’s putting money where your mouth is. If a contractor says he can build the house on budget, on time and with good quality than he should put his money on it and provide a letter of credit or performance bond to prove that! There are letters of credit or performance bonds used all over the world. They cost maybe 1% of the value of the bond/ credit. If your deposit is 20,000$ than the bond you receive should be worth 20,000$ and it will add 200$ to the cost of the project that the homeowner should pay. Would you pay 200$ for that type of guarantee? Sure. Would the contractor set aside 20,000$ to satisfy the credit? If they believe in their work than I think they should. Did I ever find a contractor who offered this form of guarantee? In my area, I’ve only seen one group of small contractors offer a bond for work and I never found anyone else. With a bond or credit of a substantial amount of money, you can almost be certain the contractor will satisfy the conditions and complete your work.
Of course it’s always nice to be able to communicate with your contractor and he/ she should be able to listen to your requests but at the end of the day I think a good contractor boils down to one who shows up on time, does their work well and does it on budget.