10 Steps toward getting the right contractor: do homework before building or remodeling to save on later headaches and frustrations--not to mention money.

• Author: Campbell, Melissa
• Position: Building Alaska - Brief Article

So you made the decision to construct a new office building. What now? The lists of contractors in the phone book is enough to make your head spin. And how will you know if you're getting a good one?

Think remodeling sounds better? It's the same list of people to hire, and there are still no guarantees you'll make the right choice.

Choosing a bad contractor--for building new or remodeling--can be painful. And seeking retribution for poor work can eventually lead to legal fees that cost more than the project itself.

There are about 8,000 contractors in the state, many of whom are honorable in their business dealings. But there are those who are not. So before agreeing to anything, invest a little time and legwork researching a contractor. After finding one you want to work with, take steps to ensure he or she is doing the job right. It'll be worth the effort and can save money and frustrations.

Here are 10 things you should do to hire and better work with a contractor. (Please note that it is not an all-inclusive list, but are some basic guidelines. Suggestions were courtesy of Dick Cattanach, executive director of the Association of General Contractors of Alaska.)

1. Make sure the contractor is licensed and bonded.

   Construction contractors must have both a business license and an occupational license.

   Contractors must first obtain an occupational license through the state Division of Occupational Licensing, showing they have obtained bonding and have public liability and property damage insurance.

   BONDING

   General contractors must secure a $10,000 bond, while specialty contractors need a $5,000 bond.

   The bond ensures payment in case of poor work. Admittedly, said Katherine Reardon, director of Occupational Licensing, the required bond amount likely won't be enough to cover problems from shoddy workmanship.

   "These are the statutes," she said. "The division doesn't have the authority to add to the requirements, so it is wise not to rely exclusively on state licensure for hiring a contractor."

   Contractors get a bond in one of two ways, according to the Occupational Licensing Division. They can go through an insurance company to secure a surety bond. Contractors pay a premium--much like any other insurance policy--that says the insurance company will guarantee the bond amount.

   Contractors also can put the bond amount into a certificate of deposit at any bank or trust company. The certificate is placed into a trust to the state of Alaska, and is...