ABA Family Legal Guide

Home Ownership

Remodeling

Hiring a Contractor

What kinds of certification should the contractor provide?

If you are satisfied with a contractor's reputation, check his or her credentials before signing the contract. Find out if the contractor is licensed and bonded. Although not all states require licensing for home contractors, those that do have at least a record of each contractor's name and address, compliance with insurance laws, and agreement to operate within the law. If the company is a corporation, the state has a record of the individual responsible. While some states only require contractors to register their names and addresses, quite a few require them to have some experience and pass an exam.

A state license doesn't ensure that the contractor will do a good job, but it's an indication that he or she has made an effort to comply with the law. Check with the state contractors licensing board to see if the license is current. Some states will also tell you if there have been complaints against a given contractor and whether they proved to be valid. Otherwise you can get that information from the local office of the Better Business Bureau or the office of consumer affairs.