Do your homework before you start your next building project.
Contact your local home builders’ association for the names of member builders and remodelers: www.nahb.org/findanhba.
Make sure the builder has a permanent business location and a good reputation with local banks and suppliers.
Find out how long the builder has been in the building business. It usually takes three to five years to establish a financially sound business. You want to make sure they will be around after the construction is complete to service any warranties.
Make sure the builder has sufficient workers compensation and general liability insurance. If not, you may be liable for any construction-related accidents on your premises.
Ask the builder to provide you with names of previous customers. If they won’t, beware. If they do, ask the customers if they would hire the builder/remodeler again.
Ask if you can see the builder’s work, both completed and in progress. Check for quality of workmanship and materials.
Do you feel you can easily communicate with the builder? Remember you will be in close contact with them throughout the construction process and afterward as you live in your new home.
Make sure the builder provides you with a complete and clearly written contract. The contract will benefit both of you. If you are having a new home built, get and review a copy of the home warranty and homeowner manual as well.
Be cautious of unusually low-priced bids. If the builder is unable to pay for the materials and labor as the project proceeds, this may indicate a potential problem. Keep in mind that less expensive does not necessarily mean better!