Elaine Fischer, a spokeswoman with the Department of Labor & Industries, offered some tips for anyone hiring a contractor:
* Research the project and find out exactly what work needs to be done, what materials are best and what they cost.
* Check with friends and neighbors for the names of contractors, then check the contractors out on the Department of Labor & Industries Website to make sure their license and bond are current and if complaints have been filed.
* Ask at least three contractors for their references on similar projects, then look at the projects and talk to the homeowners.
* If the previous work seems good, ask the contractors for bids, which should detail scope of the work, materials used and the total cost.
* Costs are either fixed price or cost plus. In a fixed-price bid, the contractor promises to complete the work for a specific cost and any changes must be negotitated separately. In a cost-plus bid, the contractor does the work, submits invoices to the client and adds a percentage for profit and overhead – generally about 20 percent.
* Once you’ve agreed on a bid, get it in writing. And put all changes in writing.
* Be wary of contractors who ask you to get the building permits. Only a registered contractor can buy a permit for work on someone else’s property. If a contractor wants you to buy the permit, there’s a chance he isn’t licensed and bonded.
* Be suspicious of contractors who ask for large deposit or the entire cost up front. A deposit of 10 percent to 15 percent of the bid price is normal, and consumers should withhold 15 percent to 20 percent until fully satisfied with the job.
* Consumers can protect themselves agains liens for a contractor’s unpaid bills by paying for materials themselves or by considering a performance bond for any project over $12,000.