A lot of people do not know how to properly review or ask for contractor qualifications prior to hiring them for work on their properties. Hiring the wrong person or company can cause problems and increase liability for the Owner, which could cause legal issues, lost money, and a lot of headaches.
Owner’s can take a few measures to help limit their exposure and give them the best chance of hiring the right contractor. Below are some recommendations that all Owner’s should inquire about prior to allowing a contractor to work on a property.
(Based on Projects in Florida)
1. Check the Sunbiz Website (www.sunbiz.org) to make sure the company name is listed and active.
2. Review the Florida Department of Business Professional Regulation (www.myfloridalicense.com) to make sure the contractor’s license is listed and active.
3. Request a copy of Contractor’s License. This can easily be done via email or fax.
4. Request a copy of the contractor’s General Liability Insurance Certificate. In addition to the certificate copy, have the contractor produce a certificate that lists your name and address as the certificate holder. Their insurance company can easily do this as no cost.
5. Request a copy of the contractor’s Worker’s Compensation policy or their Exemption Certificate.
6. Ask for previous client references.
Each one is simple to do and should not be any issue for the contractor. Once this information is complete, I recommend having a written contract or proposal signed by both parties.
Doing these things will put you in the best position for hiring the right contractor and limiting problems on your project.
Hybrid Construction LLC
General Contractor – Tampa Bay Area, Florida
Commercial – Residential – Remodel – 203K Remodel