Finding a “Healthy” Remodeling Contractor

Remodeling is a very complicated business in which it’s very difficult to be successful. Each project is custom, which means there are unlimited ways for a company to make a mistake and lose money. And a company that loses money will not be in business very long. A contractor in trouble may even go out of business on your project or, worse, entangle your home in their business quagmires with liens or other legal problems.

Like many small businesses, most remodeling companies go through at least five to 10 years of painful lessons to become successful at what they do. They invest tens of thousands of dollars learning in this “school of hard knocks.” And a person or business that does a job well deserves to be paid fairly.

Some symptoms of a contracting company that is (in trouble) losing money include:

New to the business;
Contractor disappears or fails to return phone calls;
Unprofessional contracts and bills, such as one-page estimates;
Lack of insurance, including health, workers comp., general liability and auto;
They are way cheaper than everyone else who is running a professional company;
They let the customer dictate their professional business practices;
They take cash;
They don’t want to pull permits;
They don’t have an office;
They don’t have employees but “subcontractors,” who are actually illegal employees they pay in cash;
They will let the homeowner “help” on the job to reduce the project price.

In Pennsylvania, all contractors must be registered with the Commonwealth. Check the Attorney General’s website to see your if contractor is.