How to Reduce Risk In Selecting Your Contractor?

There is no guarantee in any selection process.  You might use this website, other review sites, and even business organizations like the Better Business Bureau.  A contractor can walk away with thousands of dollars.

Safe and Trusted Canada does not promote or validate any business. We have seen contractors with 10 years of business history and A+ ratings with the Better Business Bureau suddenly go bankrupt.  We have seen consumers lose thousands of dollars, and believe there is no fail-safe system available.  All the consumer can do is reduce risk.

The following reduces risk.

Legal registration of the advertised name is important.  Better yet, ask for the registration documentation. If the contractor's name is not registered, it means they are not interested in developing a reputation that only they can use.  A business can change its name, but it will want to be able to show its business history.

Licensing for their trade area and their business category is essential. If they are not licensed, they may not be able to get a permit to do the work in the first place. Lack of permits means no inspection, and may have further implications for you when you sell your house.

Does the business have workers' compensation in place?  Ask for their clearance documentation. Make sure this is part of your contract, as you, as a consumer, may be responsible for the injuries of any worker on your property without it.

Does the business have liability insurance? What happens if there is an accident? For example, a fence builder digs a hole and hits an electrical line, or worse.  A painter spills a 5-gallon pail of paint on your brand-new rug.  A gas leak causes an explosion.  A painter is spraying your house; it also sprays the house and car next door due to wind drift. Who pays for this?

Years in business seem to reduce risk. A company that has been around locally for ten years is a better risk than someone just starting.  Think about where you work now as an employee.  You are more efficient at what you do after years of experience than when you had just a year on the job.

Does your General Contractor hire independent subcontractors?  As a consumer, you want to know that subcontractors carry liability and workers' compensation insurance.  Do they have a lead supervisor as a subcontractor?  Does the General Contractor oversee subscontractors on a consistent basis.

Detailed contracts reduce the risk for both the consumer and the contractor.  Is it probably the biggest reason for complaints?  Nothing was in writing. What happens if things go wrong?  What happens when the workmanship or what was in the contract is not happening?  Do you have progress payments?  Do you have progress reviews?  Do you have Change of Work orders?

Did you get more than one quote?  Did you interview the contractor personally?  Did you ask questions?  Are you clear about what will take place?  Did you understand that there could be hidden charges based on what turns up in demolition?  Have you researched what might go wrong in a project?

Did you ask for references?  You are interested in recent references from homeowners with no personal ties to the contractor. Your friends or family giving you recommendations is great, but too often results in problems that cost you friends and money.

Who is paying for the materials?  Can you imagine getting your roof done and finding out that your contractor did not pay the roofing supply company?  Can you imagine having a lien placed on your house for the amount that the contractor owes the roofing supply company?  Can you imagine a plumbing company putting a lien on your house when the home builder has not paid their bills? We recommend that you seek legal advice for complicated transactions.

The Site automatically reduces the subscription to an Information Only profile should the subscription be cancelled.  The business may also be archived.  See When We Archive a Business.

Please Note That We Place the Following Content Into Every Profile.

• Information Only Profiles are as advertised to the public on the internet.
• The Site as a matter of policy does not recommend, accredit, suggest, promote, or validate any business. Consumers do that through reviews.
• Site Admin provides links to other review locations in the business profile that the business owner cannot delete or change.
• Check Better Business Bureau Report if available.
• Subscription types give business owners different advertising options, but the Site does not suggest that credibility determines subscription level.
• Users can use the advanced features of the Credentials Search to determine the degree of reliability for each business.
• It is the responsibility of the user to check the credentials advertised by the business.
• Notify Site Admin immediately where the business is advertising credentials they do not have, or information is not current.
• The company and the consumer entirely determine transactions with each other.
• Safe and Trusted Canada does not mediate complaints, issues, or concerns.
• Seek legal advice for complex transactions.
• Protect your interests as removal of the business may occur at any time.