{"id":4500,"date":"2025-02-16T14:00:08","date_gmt":"2025-02-16T20:00:08","guid":{"rendered":"http:\/\/www.safeandtrusted.com\/cms\/?p=4500"},"modified":"2026-02-16T14:19:31","modified_gmt":"2026-02-16T20:19:31","slug":"why-do-credentials-matter","status":"publish","type":"post","link":"https:\/\/admin.safeandtrusted.com\/?p=4500","title":{"rendered":"How to Reduce Risk In Selecting Your Contractor?"},"content":{"rendered":"

\"Wait\"<\/a>There is no guarantee in any selection process. \u00a0You might use this website, other review sites, and even business organizations like the Better Business Bureau. \u00a0A contractor can walk away with thousands of dollars.<\/strong><\/p>\n

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.\u00a0 We have seen consumers lose thousands of dollars, and believe there is no fail-safe system available.\u00a0 All the consumer can do is reduce risk.<\/p>\n

The following reduces risk.<\/p>\n

Legal registration of the advertised name is important.\u00a0 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.\u00a0 A business can change its name, but it will want to be able to show its business history.<\/p>\n

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.<\/p>\n

Does the business have workers’ compensation in place? \u00a0Ask 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.<\/p>\n

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. \u00a0A painter spills a 5-gallon pail of paint on your brand-new rug. \u00a0A gas leak causes an explosion.\u00a0 A painter is spraying your house; it also sprays the house and car next door due to wind drift. Who pays for this?<\/p>\n

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. \u00a0Think about where you work now as an employee. \u00a0You are more efficient at what you do after years of experience than when you had just a year on the job.<\/p>\n

Does your General Contractor hire independent subcontractors?\u00a0 As a consumer, you want to know that subcontractors carry liability and workers’ compensation insurance.\u00a0 Do they have a lead supervisor as a subcontractor?\u00a0 Does the General Contractor oversee subscontractors on a consistent basis.<\/p>\n

Detailed contracts reduce the risk for both the consumer and the contractor.\u00a0 Is it probably the biggest reason for complaints?\u00a0 Nothing was in writing. What happens if things go wrong? \u00a0What happens when the workmanship or what was in the contract is not happening? \u00a0Do you have progress payments? \u00a0Do you have progress reviews? \u00a0Do you have Change of Work orders?<\/p>\n

Did you get more than one quote? \u00a0Did you interview the contractor personally? \u00a0Did you ask questions? \u00a0Are you clear about what will take place? \u00a0Did you understand that there could be hidden charges based on what turns up in demolition? \u00a0Have you researched what might go wrong in a project?<\/p>\n

Did you ask for references? \u00a0You 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.<\/p>\n

Who is paying for the materials? \u00a0Can you imagine getting your roof done and finding out that your contractor did not pay the roofing supply company? \u00a0Can you imagine having a lien placed on your house for the amount that the contractor owes the roofing supply company? \u00a0Can 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.<\/p>\n

The Site<\/strong> automatically reduces the subscription to an Information Only profile should the subscription be cancelled. \u00a0The business may also be archived. \u00a0See When We Archive a Business.<\/a><\/em><\/span><\/p>\n