Part 2: Now what I have short list, what do I do?
Check for licensing, bonding, insurance and workers compensation insurance. This is an easy thing to check in Washington State on the state Licensing and Insurance website: https://fortress.wa.gov/lni/bbip/ The website lists every licensed construction company: remodelers, builders, plumbers, electricians, sheetrockers, and so on. If a company offers a construction service, they should have a license. This is useful even if you are just hiring a plumber to fix your sink. The website includes information about the owners, how long they’ve been in business, what their liability insurance and bond limits are, whether they have had any judgments against their company, whether they have active worker’s compensation insurance and a Department of Revenue account.
The only difficulty in using the L&I website is that if you don’t have a license number, you must enter the company name exactly as it is registered. As an example, “ABC Plumbers” could be listed as “A B C”, “A.B.C.” or “ABC”. We’ve sometimes had trouble finding legitimate, licensed companies because of the way the name was registered. Just because you can’t find it the first time doesn’t mean the company isn’t licensed. Call them and ask for their license number to ensure that you can find them online.
One more thing to look for, particularly for construction contractors, is whether they hold a specialty or general contractor’s license. The state licenses contractors with a specialty license if they practice only one or two specialty aspects of construction, like millwork or countertops. Contractors with specialty licenses post a smaller bond and often have lower general liability limits. If your contractor is hiring plumbers and electricians, while also performing framing and other work, they should have a general contractor’s license with the state-specified $12,000 bond.
Google them And don’t just Google, but Yahoo and Bing them too. You will find different information on different search engines. Search results will show you not only how effective the contractor’s marketing has been, but also how they are involved in their community and over how long a time.
Look for reviews A number of websites offer reviews. Some are by subscription, like Angie’s List http://angieslist.com/ and others like Judy’s Book http://www.judysbook.com/ and Yelp http://www.yelp.com/ allow you to see reviews without logging in. Just because a company has a bad review doesn’t necessarily mean they’re a bad company, but a preponderance of bad reviews should raise a red flag.
Check affiliations and memberships The Better Business Bureau http://www.bbb.org/ is one of the oldest groups to monitor individual business performance as it relates to customer satisfaction. Memberships with the contractor’s local HBA, the National Association of Home Builders http://www.nahb.org , the National Association of the Remodeling Industry http://www.nari.org/ , the Associated General Contractors http://www.agc.org/ and similar groups demonstrate a higher level of interest in participating in the industry. If you are interested in Green building, checking for a contractor’s affiliations with Green-centered organizations like the Northwest EcoBuilding Guild http://www.ecobuilding.org/ and certifying groups like Built Green http://www.builtgreen.net/ might be helpful.
Check for community participation and continuing education Professional remodelers who have a strong community-based business tend to participate in community events and donate locally. Fairs, concerts and other events provide sponsorship opportunities, and local newspapers and blogs (like the West Seattle Blog http://westseattleblog.com/ ) can be sponsored via advertising. Hiring a company in your neighborhood who donates locally ensures that your money is going back into the community where you live. There is also an inherent value in hiring a company in your neighborhood because there isn’t a distance or time barrier (read: freeway traffic) to get in the way of taking care of you quickly.
The National Association of Home Builders and other groups have educational programs and certifications designed to demonstrate achievement in certain areas (Green building, business management, customer service, aging-in-place, etc.) that are satisfied with classes and other requirements. A contractor who takes the time to complete these designations has gone the extra mile to learn more about how to do a better job for you.
Look at their website A website will tell you alot about a company: how well they communicate, what kind of work they do (via their online portfolio), what they think is important, and how frequently they take the time to update their website. A professional remodeler will see the value of a strong online presence and will invest in regular updates and a comprehensive website. A remodeler who is stretched thin in terms of resources will either not update regularly, or have limited information. Some companies that have been in business for decades may still not see the value of a web presence, particularly if they are smaller have a steady stream of business from previous clients.
Next, Part 3: What to Ask in Person