Georgia Construction and Licensing Law for Residential Contractors, Specialty Contractors and Home Owners

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How to Pick a Contractor
 
Information about how to pick a remodeling contractor may be found at the National Association of the Remodeling Industry (NARI) or a number of other websites including www.georgia.gov. Look at several of these because they offer different information. Picking the right contractor to do your remodeling or other construction project can be the most important thing you can do to assure that you have a success construction project. But it is import that you understand that YOU play an important part in your construction project. For information about what you can do, try frequently asked questions about picking a remodeler below as well as cosumer tips.

 

Search public records in local counties to see how many liens/lawsuits/complaints your contractor may have filed or have filed against the contractor.  While some liens and actions may be expected, a great deal of liens or actions may clearly signal issues (red flags), including a failure to pay subcontractors and suppliers. 

 

Insurance:  Check to be sure that the contractor has liability insurance and workers compensation insurance (if required by law).  Just because a company provides you with a purported certificate of liability insurance does not mean that the insurance has not been cancelled since the issuance of that certificate or, as has unfortunately been done by some unscrupulous contractor, an expired certificate doctored to bring the dates current.  Be sure to check with the agent to be sure that the insurance is valid.  Note:  State licensed contractors are required to at least have minimum liability insurance policies but there is a chance (although less likely) that even these can be cancelled and an administrative notification in process. 

Consumer Tips:

 

1.  Prices that seem too good to be true usually are too good.  Some "great deals" will involve low-quality work or substandard materials.  Some low bidders plan to make up profits on inevitable change orders. 

2.  Do not buy from an unknown company selling door to door.

3.  Resist the high-pressure sales technique. "Act now" offers are rarely that limited in a remodel project. 

4.  Avoid moonlighters - their work may not be quality.  In some cases, the goods and materials they are using may be stolen from their employer or another source.  They also may not be properly licensed or have proper insurance. 

5.  A sign in your neighbor's yard during a project does not mean that your neighbor will be happy with the result and recommends the contractor.

6.  A referral may not be worth much if the person judging does not have a good ability to critique.  Even bad companies can have a good job.  A good company can have a bad job on a bad day. 

7.  Check references and other sources.  The BBB is a start but it is only a start.  Check the Secretary of State to see if the contractor is incorporated.  Find the county of their registered agent and prinicpal office.  Check the legal records for the courts in those counties (both the individual and the corporation) - many court files are now online.  Check the state license (if one is required).  Check counties where the contractor works to see if owners have sued or been sued. 

8.  Avoid price comparisons that are "apples to oranges."

9.  A good contractor will have a good contract.  Contracts are the legal documents that give you you the clear rights.and remedies.  A good contract details the specifications of the project.  Handshake deals are basically costly battles waiting to be fought. 

10.  Avoid large up-front payments.  But some additional deposits are reasonable if required by a contractor when items are special ordered or non-refundable.  If possible, use credit card to make payments so that you may avail yourself of additional legal protection. 

11.  Avoid cash payments.

12.  Consider lien releases on major projects.

13.  A contractor who claims to be "licensed" and is referring to a county issued occupational tax license is NOT truly licensed.  An occupational tax license issued by a county is merely a filing.  It does not represent a certification.  A contractor who does suggests that an occupational tax license is a state license or arises from a testing or certification is a definite red flag. 

 

FAQ's about Picking a remodeler.
 
What about referral services that claim to "screen" contractors?
While there are purported screening services, I do not recommend using these services exclusively.  If someone has a bad rating on the BBB or Angie's List, that probably indicates you should run away from the contractor.  But if they are not listed or have a good rating, does that mean you are done checking them out.  Absolutely not!  I have seen very bad contractors who are not rated or who may intimidate those who try to post honest ratings.  Some bad contractors are notorious for having "serial companies" - when one company gets a bad rating they just create a new one. 
 
What truly impacts the quality of your project?
There are numerous examples where a good contractor has a bad project.  Were the subcontractors the same?  Did the project supervisor change?  Were the products used in the projects the same?  If the products change, the subcontractors may change.  A contractor may have a great interior designer working with them for a kitchen remodel but a horrendous outdoor deck subcontractor.  No two projects are likely to be the "same."  How many projects are going on at the same time? 
 
What questions do I ask when checking references?
Ask questions about quality of work, adherence to the schedule, rework, and inspection issues.  Did the contractor communicate regularly and responsively?  Did the contractor work with the homeowner in the resolution of disputes.  Ask about the quality of subcontractors.