What else should I ask about?
Ask your contractor about the following points:
Whether he or she carries workers' compensation insurance, to cover injuries that workers might sustain on the job. Your homeowner's insurance probably doesn't cover workers' compensation, so if the contractor doesn't carry it, you could be responsible for some hefty bills. In addition, the contractor should carry a builder's risk policy to cover any damage caused during construction.
Whether he or she belongs to a trade association. Many associations require a contractor to have been in business a certain length of time, to have passed a credit check, and to meet all legal requirements of their state. It wouldn't hurt to call the association to make sure the contractor's membership is current and inquire about complaints.
Whether the contractor offers a warranty on work and materials. If so, what is the time limit on the warranty? Make sure any warranty is included in the contract. (Even if there is no specific warranty, most jurisdictions recognize an implied warranty of good workmanship that gives you some protection.) For an additional fee, some contractors offer an extended warranty such as the five-year policies available through the Home Owners Warranty Corporation. Some states have statutory warranties in addition to the contractual ones.You should also check whether or not any civil judgments or lawsuits are pending against the contractor, by calling the local clerk of court. If someone sued the contractor over something like poor workmanship, consider it a warning. Likewise, you might want to check with the nearest federal bankruptcy court to see whether the contractor has recently filed for bankruptcy--a possible indication of financial instability.
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