Checklist for Hiring a Builder -
From the National Association of Home Builders (NAHB)

mtcontractor.com - to find out if your Builder is registered with the state of Montana

Questions to ask

Are they a local company?
How long have they been in business?
What type of work do they do?
Do they belong to a professional association?
Have the done similar jobs?
Have they done work requiring permits?
Do they have local work references to check? Supplier references?
Can they provide a copy of their liability and work comp insurance certificate?
Do they have a current contractor registration number? If not - do not use them!

• You can find out if a builder is registered with the Department of Labor by going to mtcontractor.com. See the link to their web page at the top of this page.

Get three different bids
Bids that are noticeably lower than all the others, should be questioned. The difference may be in the quality of materials to be used, experience of the crew doing the actual work, something missed on the bid requirements, or it can be an indication that the contractor is not covering all the legitimate business costs, costs that may come back on you?

Don`t be afraid to ask other questions!
Good communication with your contractor is vital to the success of the project. It helps clarify exactly what you want done.

Permits are for your protection!
Make sure all permits are in place and inspections are made as the work progresses. Make sure the name of your contractor appears on the permit.

Do your homework!
Check the references thoroughly. Go see past work and talk with the homeowners.

What Should Be In A Contract?

1. Agreed price, including permit fees, if applicable.
2. Specify exactly what work is to be performed and the materials to be used.
3. Start and completion dates.
4. Discuss the possible problems and inconveniences; such as who is responsible for cost overruns, agreement for obtaining draws as work progresses, and whose responsibility it is to clean up the work area each day.
5. Put all decisions into the contract.
6. Be cautious about paying in advance

As Work Progresses
1. Make sure all permits are in place and inspections are in order.
2. Ask questions. If you do not like or understand an answer, STOP the work until you do.
3. Do not make final payment until you are satisfied and have received lien releases.

Lien Law Information

1. You should receive construction, lien information, so you can take steps to protect yourself. (Contact your lender or attorney for further information.)
2. Montana law says you have final responsibility to see that bills are paid in full.
3. Make final payment contingent upon receiving a lien release for labor and materials used on your project.

Risks & Liabilities
When Hiring a contractor or acting as your own general contractor:

1. You are responsible for the medical and time loss costs of employees injured while working on your home/project.
2. You may be held liable for all unpaid taxes owed to the State.
3. Your homeowners insurance may not cover work done by an uninsured contractor.
4. The law requires complete disclosure of all work that has been done on your home when you resell. You may be required to redo work done without permits or inspections. Nondisclosure can lead to civil action being taken against you.
5. You may be placing yourself and your family in a life threatening situation, especially when hiring unlicensed people to install plumbing, electrical wiring, heating systems, or security systems.
6. Suppliers can lien your home for nonpayment of materials by your contractor.
7. Unpaid workers can lien your property. When problems arise, your only recourse is a lengthy and costly civil action-if there are any assets of value to attach, and your can find the contractor!