How to avoid hiring the wrong contractor

You're ready to tighten up your home or business, but the project is beyond what you want to do on your own. Use this five-step guide as a checklist to help you find the right contractor.

Use our online listing of Efficiency Excellence Network contractors.

Efficiency Excellence Network (EEN) contractors:

• Are trained experts in the advanced technologies and building sciences that make buildings more energy efficient
• Are committed to providing the highest level of customer service
• Have access to the Efficiency Vermont discounts, rebates, and financing that make your project more affordable

We recommend that you narrow the selections to a list of less than five contractors to start.

Before you start talking to contractors, it’s important to have a clear understanding of your goal or the problem you need fixed. Present consistent information to each contractor you interview. You might need your contractor to help you understand the source of a problem (for example, what is causing drafts in my home?).

Prepare answers to common questions your contractor may ask, such as:

• The age or size of your home
• Current fuel and heating system
• Utility information
• Any previous efficiency projects completed at your home

As questions arise during your conversation, make notes to reference later to help you compare contractors.

Call the contractors on your list to discuss your project. A phone interview can give valuable insight into what it might be like to work with a specific contractor. Ask questions such as:

• How many projects like mine have you completed?
• How many do you do per year?
• What are some of the results of your projects?
• Do you use subcontractors? If so, are they trained in energy efficiency, and would you plan to use any for my project?
• When could my project fit into your schedule?
• Do you have experience with Efficiency Vermont and securing rebates for customers?

Before working with a contractor, it’s crucial to confirm that they have adequate insurance.  This helps protect you, your home, and the contractor if accidents or damages arise during the project.  Having the right insurance in place can provide peace of mind and help avoid unexpected expenses.

Here are some types of insurance coverages you should consider asking about:

• General Liability Insurance: Covers property damage or injuries caused during the project. For example, if the contractor accidentally damages your property or a guest trips over equipment, this coverage helps handle those costs.
• Umbrella Insurance: Provides additional coverage beyond the limits of the contractor’s primary policies, such as general liability, auto liability, or workers’ compensation. This is especially useful for larger projects or those with higher risks, as it helps ensures adequate financial protection in case of catastrophic incidents. For example, if a liability claim exceeds the limits of the contractor’s general liability policy, the umbrella policy can cover the remaining costs up to its limit.
• Workers’ Compensation Insurance: Protects you from liability if the contractor is injured while working on your property. In Vermont, workers’ compensation coverage is only required for businesses with employees. Businesses without employees are not obligated to carry this coverage, though they may choose to purchase it, and may choose to exclude the business owner(s) from such coverage.
• Commercial Auto Insurance: Ensures that vehicles used during the job are covered for accidents or damages. This is particularly important if the contractor needs to transport materials or equipment to and from your property. Personal auto policies can exclude coverage for business use, so confirm they have the appropriate policy for your project.
• Professional Liability Insurance. Protects you against errors, negligence, or damages related to professional services. This coverage is particularly important if your project requires specialized skills and technical expertise, as mistakes or oversights can lead to costly repairs, safety hazards, or system failures.

Before hiring a contractor, request a certificate of insurance to confirm they have the necessary coverage to complete your project. You can also ask to be listed as an additional insured on all policies and as an additional insured on a primary and non-contributory basis for ongoing and completed operations under their general liability policy.

If the contractor plans to use subcontractors, it’s important to ask about their insurance coverage as well and request certificates of insurance for each subcontractor.

Once you’ve narrowed your list to a couple of contractors, take the time to check their references and confirm that their licenses are valid for the work they’ll will be performing. This step will give you added confidence in making a final decision.

Questions to Ask Previous Customers

When contracting a contractor’s references, consider asking:

• Were you satisfied with the contractor’s work?
• Are you as happy with the results today as you were when the project was completed?
• Were there cost or schedule overages? If so, why—and how did the contractor handle the situation?

Additional Research

It’s equally important to conduct your own research before selecting a contractor.  The Vermont Secretary of State’s Office of Professional Regulations offers a Homeowner Resource page with valuable tools and information to help homeowners research and evaluate potential contractors for their project.