5 Steps For Hiring Service Professionals

1. Confirm the existence and legitimacy of the company a salesperson claims to represent.
   
   Verify that the individual with whom you are speaking is an authorized agent of the company you have contacted.
   
   If you are being approached (cold called) or otherwise the contact is unsolicited, ask for identification from the representative, even if he/she is wearing a uniform or an ID tag, to make sure the person standing in front of you is who they claim to be.



2. Ask for a copy of the company's business or operating license.


Ask the company or representative to provide a copy of their current license, or operating authority; business license, contractor's license, etc. It is important that you verify the license is still in good standing. Be aware that certain states licensing requirements are based on dollar amounts and not project type.

And don't forget to obtain this information for ALL sub-contractors who may be involved in providing the work/service.

If the company is out of state, contact your own local or state government business licensing agencies to make sure that the company (and/or sub-contractors) is authorized to operate or perform the type of work or service in your area.

Contact your local Better Business Bureau and find out if the company has any history (especially negative comments) in your area -- and don't forget to check up on sub-contractors as well.


3. Ask for proof of insurance.
   
   Ask the company or representative to provide a copy of their insurance certificate. We recommend that you verify with the insurance agency or carrier that the policy is still in good standing, and also (for out-of-state companies or contractors) check with your own state's insurance division to make sure that the insurance carrier is licensed to operate within your state.



4. Ask for references.


Ask the company or contractor for a list of contacts or references for former clients who have had the same or similar work/service performed, and don't hesitate to contact these references.


5. Finalize the contract before starting on a project.
   
   
   A good contract should:
   
   
   • Protect all parties
   • Be written on company letterhead
   • Include the company's name, physical and billing addresses, phone numbers, fax numbers, email addresses, or any other relevant contact details.
   • Include your name and address, as well as the address or location where the work/service will be performed.
   • Be dated and executed by both parties with a copy provided to each
   • Include a description of all work to be performed
   • Contain a line item dollar amount or each item or service to be performed
   • Include the start and anticipated completion date, and spell out all completion milestones, bonuses, penalties, etc.
   • Include a termination clause (based on the parties’ expectations as to services, quality/workmanship, payment schedules, etc.)
   • Include a clause about damages in the event of performance issues
   • Include a clause that protects the homeowner from a mechanic’s lien; get a signed release from any/all sub-contractors if the main contractor introduces others to the job
   • Define which party has responsibility for obtaining required permits and/or inspections, and clearly define the timeframes and milestones for all such elements.
   • Contain a 'payment staging breakout description' for multi-stage or extended length projects
   
   
   Absolute Don’ts
   
   
   • Do not pay individual sub-contractors, deal only with the company or primary contractor.
   • Do not pay cash to any entity without a written, dated receipt that clearly identifies what the payment was for, and which is dated and signed by an authorized agent of the entity.
   • Do not make a final payment until you are satisfied with the results. If an inspection is required, do not pay until the inspection is complete.
   • Do not advance money for materials, or provide materials yourself, unless the details of what is being provided, are clearly described and included in your written contract. If pre-paid materials are required, make sure that the suppliers deliver these to your home address or to the address you specified, make sure you are there to receive and sign for them, and that you have a signed and dated receipt showing that they are pre-paid in full.
   • Do not make verbal agreements.
   
   
6. Document any and all changes to the contract.
   
   Make sure any and all changes suggested or required are incorporated into the original written contract by amendment, and that all affected parties sign off on those amendments before the changes are allowed to go into effect.