About Contractors

Finding the right general contractor (GC) is critical to ensuring the success of your project. By far the most challenging, sensitive and time-consuming aspect of the Payclipper program is selecting and approving contractors.

Standard ways of finding contractor, benefits and drawbacks:

Ask family, friends, co-workers, neighbors , realtors

Benefits

• Trusted Recommendations - You’re likely to get honest feedback from people you know and trust about their experiences, including the contractor’s quality of work, reliability, and professionalism.
• First-Hand Insights - Friends or family can show you the contractor’s completed projects in person, allowing you to judge the craftsmanship. They may share details about the process, costs, and challenges they faced.
• Saves Time - Personal referrals can save you the effort of searching through online reviews or vetting multiple contractors.
• Local Expertise - Neighbors in particular are likely to recommend contractors familiar with local regulations, building codes, and climate-specific needs.
• Accountability - A contractor referred by someone close to you may be more inclined to perform well to protect their reputation and maintain relationships.

Drawbacks

• Limited Choices - Relying solely on personal referrals may narrow your options and exclude highly qualified contractors you might find through other sources.
• Subjective Experiences - What worked well for someone else may not suit your specific project or expectations. Preferences for style, communication, or budget can vary.
• Pressure to Hire - You might feel obligated to hire the recommended contractor, even if they aren’t the best fit for your needs, to avoid disappointing the person who referred them.
• Risk of Bias - Personal relationships may lead to exaggerated praise or withholding of negative feedback to avoid conflict.
• Potential for Strained Relationships - If the contractor doesn’t meet your expectations, it could create awkwardness or tension between you and the person who referred them.
• Lack of Comprehensive Due Diligence - Relying solely on recommendations may lead you to skip important due diligence steps, like checking licenses, insurance and references.

Expand search through social media in your area: Facebook, Instagram etc.

Benefits

• Broad Access to Options – Various social media platforms provide access to a wide range of contractors, showcasing their work and services.
• Visual Portfolios - Contractors often share photos and videos of their completed projects, giving you a clear idea of their quality and style.
• Reviews and Feedback - Social media allows you to read customer reviews, testimonials, and comments directly on the contractor’s page or profile.
• Direct Communication - Many contractors manage their own social media accounts, making it easy to message them directly for inquiries or quotes.
• Recommendations from Your Network - Posting on your personal social media accounts can elicit recommendations from friends, family, or local connections who have worked with reputable contractors.
• Real-Time Updates - Contractors often post updates about their availability, special offers, or new services, which can be beneficial if you’re looking for timely assistance.

Drawbacks

• Potential for Misleading Content - Some contractors may post overly curated or edited photos that don’t reflect their actual work quality. Fake reviews or testimonials can create a false sense of credibility.
• Incomplete Information - Social media profiles may lack essential details like licenses, insurance, or credentials.
• Too Many Options - The abundance of contractors on social media can make it difficult to narrow down choices or determine who is genuinely reliable. Popular contractors may be overbooked due to their online visibility.
• No Guarantee of Quality - A strong social media presence doesn’t always translate to high-quality work. Some contractors prioritize marketing over customer satisfaction.
• Privacy Concerns - Posting requests for contractor recommendations in public forums may expose personal details about your home or project to strangers

Cast wider net by searching through online contactor aggregators

• Porch
• Houzz
• Thumbtack
• Angi

Benefits

• Wide Pool of Contractors - These platforms give you access to numerous contractors, increasing the chances of finding one who suits your specific needs and budget.
• Verified Reviews and Ratings - Many platforms include user reviews and ratings that help you gauge the quality of a contractor’s work.
• Licensing and Insurance Verification - Some platforms require contractors to verify their licenses, insurance, or certifications, giving you an added layer of confidence.
• Easy Communication - Many platforms offer built-in messaging tools or contact forms, making it simple to reach out to contractors, ask questions, and request quotes.
• Project Management Features - Certain platforms, like Porch, offer project management tools to help you track progress, invoices, and communication.

Drawbacks

• Mixed Quality of Contractors - Not all contractors listed on these platforms are equally skilled or professional, and some may be new or unverified. Even with reviews, the quality of work can vary widely.
• Pay-to-Play Listings - Many platforms allow contractors to pay for higher visibility, which doesn’t necessarily correlate with better quality or experience. Upon signing up, personal information is sold to multiple contractors, often within minutes of completing the form. Some homeowners complain about getting too many calls and emails as soon as they submit their information.
• Limited Screening - While some platforms verify licensing and insurance, not all contractors undergo thorough background checks, leaving room for unqualified providers. The pre-screening process can result in a false sense of security for homeowners and lead them to believe they don’t need to run their own screening process.
• Fake or Inflated Reviews - Some contractors might post fake reviews or ask clients to leave overly positive feedback, making it harder to trust ratings. In addition, there are paid software tools that generate “fake” reviews.

PayClipper

Benefits

• Rigorous Verification of Credentials and Licensing
  • License - Verify that the contractor holds a valid state or local license, if required in your area.
  • General liability insurance - Protects against property damage.
  • Workers’ compensation insurance - Covers employee injuries.
  • Bonding where applicable.
• Ongoing active monitoring of all relevant policies
• Evaluate Experience and Portfolio – Check project experience, evaluate completed and ongoing projects, including in person visits.
• Evaluate completed and ongoing projects from proposal to change of orders to final invoice. Cross reference timelines with permit records.
• Analyze project management processes, supply channels, subcontractor management.
• Assess Communication and Professionalism – Contractors must communicate promptly and effectively.

Below are steps and best practices to evaluate, rate, and conduct thorough due diligence on contractors.

Tips for Balancing Recommendations with Due Diligence

• Get Multiple Opinions: Ask several friends or neighbors for recommendations to identify common names and build a list of potential contractors.
• Conduct Your Own Research: Even with a referral, verify the contractor’s credentials, licenses, and insurance coverage.
• Check References and Reviews: Look beyond personal feedback to see online reviews or testimonials from a wider audience.
• Clarify Your Needs: Ensure the recommended contractor has experience with projects like yours, as expertise can vary.
• Avoid Rushed Decisions: Meet with contractors in person to assess compatibility and get detailed estimates before making a commitment.