Make Sure Your Contractor is Fiscally Sound

(ARA) - In the current challenging housing market, many homeowners are looking to remodel their homes instead of building or buying. But even with the increase in renovations, construction work is still scarce, and many contractors are finding it hard to stay afloat. Consumers need to protect themselves from ending up with a half-finished project and a contractor who ends up in bankruptcy court.

"Consumers would be surprised to know that so many builders and remodelers do their accounting out of a shoebox," says Dianne Kaiel, product marketing manager for Sage Software, makers of the popular Peachtree Accounting, Sage Master Builder and Sage Timberline Office software. "Using simple software helps improve operational efficiency and control costs."

Kaiel offers some tips to help make sure your contractor will be around for the long run.

* Interview the contractors you're considering and make sure to check references. Get the names, addresses and phone numbers of at least three clients who used the contractor for jobs similar to yours.

* Look for a well-established company and find out how long they've been in business. Check with the Better Business Bureau and consumer review sites to find out if the company has any complaints against them.

* Find out if the contractor has all the proper licensing and registration necessary for your state. Make sure the license is current.

* Ask how they do their accounting. Larger and more reputable companies often use Sage Master Builder or Sage Timberline Office. If a contractor has invested in tools that make his or her business more productive and efficient, it's a good sign they'll work to keep your bottom line in mind as well.

* Ask if your project will require a permit. Cities and states require permits for most building projects, so be suspicious if the contractor immediately says no permit is required or asks you to get the permits.

* Find out if subcontractors will be used on your project and, if the answer is yes, get their licensing and registration information as well.

* Get copies of insurance certificates and make sure they're current. If a contractor does not have insurance, you could be held liable for any injuries or damages that occur during the project.

For more information on interviewing contractors, visit www.ftc.gov. For more information on the benefits of Sage accounting software, visit www.SageSoftware.com.

Courtesy of ARAcontent