Tips & Warning Signs

“Protecting Homeowners Through Renovation Education”

A successful home remodeling project is dependent upon finding an ethical, reliable, competent, and experienced contractor. This is where your research must be as thorough as possible, including background checks which will help to uncover any “skeletons” now, rather than in the middle of your project should things begin to unravel. Your work is about to begin!

 Hire only licensed contractors.

Check with your State’s regulatory agency which governs the licensing and enforcement of building contractors. If you choose to hire someone without a license you’re on your own.

Check for a history of complaints with the Contractors Board or regulatory agency.

Verify that your contractor has a good record with your States’ Contractors License Board. Check for any disclosed complaint history and legal actions taken against the contractor. Warning: No record of complaints against a contractor does not necessarily mean no previous or current consumer problems. Problems may exist but may have not been fully investigated and reported. It can take up to a year before the information is made available to the public. This happened to us. Eight months into our construction nightmare, we discovered the citation notices against our contractor on the CSLB’s web site that were not there when we first checked the contractor’s status when signing on with his company. Sadly, it becomes a “damn if you do and damn if you don’t”, but again, it is your responsibility to check on it.

tips hiring contractors, Tips and Warning SignsYou could also check with your local Better Business Bureau but know that they are also dependent on the Contractors License Board for any legal complaint history.

However, consumers who would not bother with the Contractors Board may just file their complaint with the BBB and be done with it. Ask if they have had any complaints about the contractor If so, were those complaints resolved satisfactorily. As for me, if there were complaints that’s a red flag and I’d move on to the next potential contractor.

Check references and follow up with the homeowners.

Ask for both recent (12 months) as well as the last three years. You’ll get a much better picture of the contractor’s current work and long-term standing with his customers. Talk to the homeowners to verify the quality of workmanship. Visit on-going jobs and note job-site conditions.


Some questions to ask previous homeowners:

•  Were they happy with the contractor?

•  Did they complete the job in the time frame they promised?

•  How was the quality of work?

•  Was the contractor readily accessible and did he respond to problems as they arose in a timely manner?

•  Did the contractor willingly make any necessary corrections?

•  Did the workers show up regularly and was there supervision?

•  Did he keep the project moving?

•  Did the project come in at the cost stated on the contract?

•  Would you recommend this contractor and would you use him/her again?

•  Ask the contractor how long he/she has been in business and have they done projects similar to yours.

Five years in good standing in your community is considered acceptable. Check out those projects that are similar to yours. Be sure to ask the homeowners about the contractor. Depending on the job, you should also check references from material suppliers to determine whether the contractor is financially responsible.

Verify the contractors’ insurance.

Check for workman’s compensation, general liability, and surety bond coverage. Call these companies and verify coverage. Ask for a copy of these certificates and verify them by calling the insurance companies.

As a homeowner, if a worker is injured on your property and the contractor does not have insurance you’ll be responsible for picking up the medical bills. Don’t let your homeowners’ insurance become the contractor’s liability coverage.

>  Get at least three bids using the same set of plans so that you’re comparing apples to apples.

>  Make sure the plans include everything you want to be stated in the bid.

Be very specific regarding the quality of materials, name brands, colors, sizes, etc., that will be used or installed on your remodeling project. This is where the specifications must contain every detail that you’re expecting to have included or installed. Do not leave this up to the discretion of the contractor who may get greedy using low-quality materials in order to beef-up profit margins.

•  Verify that the contractor maintains a permanent mailing address, e-mail address, published personal phone number, fax number, and a cell phone, or voice-messaging system.

You want to be sure that you can reach him quickly in an emergency and that he’s not just working out of his truck.

•  Obtain from the contractor a list of building materials, suppliers, and subcontractors he uses for his projects.

Ask the contractor for the names of the subs he plans to use on your project and check out their license status. Now, this can change from job to job as far as subs go, so he/she may not be able to provide you with the subs UNTIL you’ve agreed to hire that contractor. Then you’re entitled to know who he plans to use on your project.

Just make sure that the contractor uses licensed sub-contractors, obtain their license numbers, and check their status with your Contractors State License Board. If you have questions- by all means, ask!

•  Contact the suppliers to verify his credit standing.

Does he have an account or pays on delivery? Most suppliers are willing to extend credit to financially sound contractors. Contact the subcontractors and ask if the contractor pays them timely and if they have had any problems with nonpayment. These are some simple checks that homeowners can conduct and it bears repeating. It can reveal much about the contractor and save you from a horrible nightmare.

• When interviewing contractors pay attention to how you feel about him/her.

Are you comfortable dealing with them, do you have a good feeling about having them around for a few months or more. It’s just as important to have a good working relationship with the contractor as it is to have a contractor with great credentials.

• Consider doing a more extensive background check on the contractor you’re thinking of hiring.

With tens of thousands of dollars or more of your money on the line, wouldn’t you’d like to know if the contractor has a lien history, litigation history, bad debts, or past bankruptcy before signing a contract? Well of course you would. You can begin by conducting a search of court records in your city/county to check for litigation history and you can also check their lien history by doing a search through the County Property Assessor’s office that records these liens. Some of it you may be able to do online otherwise you’ll have to physically go to these places to conduct your search.

• Check the sub-contractors’ license number and get business cards from all the subs who work on your project and keep track of when they have completed their job on your project.

Again, be sure everyone is paid before you cut the check to the contractor. BE SURE TO OBTAIN LIEN RELEASES FROM THE CONTRACTOR WHEN PAYING FOR WORK THAT HAS BEEN DONE.

•  Finally, get a written contract but sign nothing until you completely understand the terms.

It is well worth your money and peace of mind to know that you have signed a well-written contract that protects your interests and not just the contractors. You can read more about construction contracts by reading the section on contracts.

The key point to remember:
Never pay more than 10% or $1000-as a down payment- whichever is less (for California) and for other States usually not more than 30%.

Know that NO ONE ELSE is looking out for you BUT you, so double check your contractor of choice. As I’ve said in the past, when it comes to hiring contractors it’s a crapshoot. But you can increase your odds of success by taking those extra steps because, in the end, it will be well worth the trouble. I know this seems like an awful lot of work and it is, but it is absolutely necessary if you want to avoid an encounter with the contractor from hell and reduce your chances of a remodeling project gone bad.

Learn How To Maintain Control Of:

Your Project, Your Money, Your Contractor!

tips hiring contractors, Tips and Warning Signs

Podcast Interview: Beyond Influence Series

by Jody Costello & Cloris Kylie

yahoo Finance
February 14, 2022

A must read!!

Yahoo Finance News:  Quoted and featured in:  Homeowners Confront Every Imaginable Disaster Trying To Renovate Their Homes

The Bark Podcast:
Interview with Jody Costello of ContractorsFromHell.com:

Podcast Interview: Beyond Influence Series

by Jody Costello & Cloris Kylie

HerStory Circle TV Podcast with
Jody Costello:

January 27, 2021

Quoted in the New York Post:
Top Home Renovation Projects To Consider and What They Will Cost

December 15, 2020
Delighted to be quoted in this great article on renovating laundry rooms:

Plan Out Your Laundry Room Renovation

April 16, 2020
Honored to be quoted in:
Done A Home Remodel? What Do You Know Now That You Wish You Knew Before?

January 7, 2020
YourGreenPal.com
23 Money Saving Tips and Exterior Home Improvements For Seniors
Honored to be quoted in an important article

October 8 2019
SFGATE.com - Realtor.com
4 Ways To Finance Your Home Improvement Project Without Draining
Your Bank Account
Quoted in Real Estate

September 26, 2019
Realtor.com News
Quoted in Home Improvement:
Crucial Things You Need To Clarify Before Hiring Painters

July 21, 2019
Freshome.com
Contractor Fraud Expert Warns of 7 Home Improvement Scams To Avoid
Honored to be featured in this article.

May 31, 2019
Realtor.com
Quoted in: How To Find A Contractor - 4 Essential Steps For Homeowners

May 28, 2019
Realtor.com
Quoted in: 7 Signs You Should Put Off - Or Call Off A Home Renovation

February 2019
BudgetDumpster.com
Honored to be quoted in the Checklist For Hiring Contractors

July 24, 2018
FitSmallBusiness.com
Top 25 Expert Tips To Keep Neighbors Happy During Construction

May15, 2018
Fitsmallbusiness.com
How To Find a Contractor

June 2017
Realtor.com: Could a Home Improvement Scam Cost You $1,400? How to Stay Safe

May 31, 2017
How To Find a Contractor: 4 Essential Steps For Homeowners

Interview with PDH Academy:
Expert Interview Series with Jody Costello About Educating Homeowners and Contractors To Help Avoid Disputes, Mistakes And Lawsuits

DIY Home Improvement For First Time Homebuyers – July 2016
Featured Expert in the remodeling section of the Exceedingly Comprehensive Guide To DIY Home Improvement For First Time Homeowners. Check it out!

BBC.com – May 16, 2016
Interview with the BBC.com on what to do when things go horribly wrong.

September 9, 2014:
US NEWS and WORLD REPORT : How To Deal With A Bad Contractor

April 24, 2010:
US NEWS and WORLD REPORT : How To Deal With A Bad Contractor

April 29, 2010:
The New York Times “The Hand-Me-Down Home”

July 20th 2010:
BlogTalk Radio Interview with Denice Newton on “After Thoughts”

August 13, 2010:
BlogTalk Radio Interview with Hollis Chapman

MostMost.net  April 24, 2010
10 Most Important Tips Before Doing A Home Renovation

Money Magazine December 2008
Renovations On Sale “some less than scrupulous remodelers may cut corners to come up with that low bid or else leave off charges that they may tack on later…sites like ContracorsFromHell.com…can also provide valuable insights.”

Los Angeles Times  Sunday, July 13, 2008
Hiring A Contractor Is A Hands On Job

The Morning Show with Mike and Juliet
Fox News Affiliate New York June 2, 2008

Sign On San Diego.com San Diego Union-Tribune May 24, 2005
Building a Defense for Consumers: Spot lighting ContractorsFromHell.com

Los Angeles Times April 19, 2005
by Jordan Rau, Times Staff Writer Bill would End Gag Clauses That Stifle Victims Who Sue

Los Angeles Times, August 16, 2005
Contractors Board Falls Into Disrepair by Jordan Rau, Times Staff Writer Homeowners are upset that regulators can’t better protect them from bad builders.

Los Angeles Times, February 22, 2004
Unfinished Business: A Contractor’s Lien Over Disputed Fees Can Stop a Homesale or Refinancing by Jeff Bertolucci

American Bar Association Journal and Report – April 25, 2005
Second Efforts Seek to End Contract Gag Clause Rule by Moly McDonnough Group wants end of clauses preventing complaints to regulatory agencies.

People Magazine – May 30, 2005
Contractors From Hell by Ken Lee Four homeowners share their cautionary tales of home remodeling nightmares with yours truly as the lead story.

This Old House – September 2002 (repeated in the summer of 2003)
Get It In Writing by Jeffrey Rothfeder Shoddy work, vague contract verbiage and our remodeling nightmare highlighted in this issue of TOH.

Newsweek – May 6, 2002
This Remodeled House by Linda Stern Our home remodeling nightmare starts off this article in Newsweek.

tips hiring contractors, Tips and Warning Signs
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