How to vet a contractor before you recommend them
Vet a contractor before you recommend them by checking four things yourself: an active state license where the trade needs one, proof of insurance in writing, a written estimate on a job you have seen, and what the last client you sent there said afterward. Write the date of each check on your list, because licenses and insurance lapse.
How do you vet a contractor before recommending them to clients?
Run the same four checks on every contractor, and write down the date you ran each one. The order below puts the free, two-minute check first.
- Look up the license on the state or county board's website if the trade needs one where you work. Write the license number and the date in your list's license columns.
- Ask the contractor for proof of insurance, and keep the certificate they send. Note the date it runs out next to their name.
- Get a written estimate from a job you've seen, your own or a client's. It should name the work, the materials, the completion date and the price.
- Ask the last client you sent there how the job went, and write their answer down. A brand-new vendor has no answer yet, so ask again after their first job for you.
The vendor list template has columns for the license, the insurance and the last outcome. The estimate goes in its Notes column.
How do you check a contractor's license before you refer them?
Search the contractor's name or license number on the state or county licensing board's website. Confirm the license is active and that the business name matches the one on the estimate, then write the number and today's date on your list. In Oregon that's the Construction Contractors Board, and in Washington it's the Department of Labor and Industries.
Here's how to check a contractor license in Oregon and Washington step by step. For other states, start at the contractor license lookups by state.
What does a license lookup not tell you?
It tells you nothing about the quality of the work. A lookup shows whether the license is active, and in Washington it also shows the contractor's bond and workers' comp account. A roofer can have a clean record and still leave a mess in the gutters, so the other three checks still matter.
What makes you recommend a contractor to clients?
Work you've seen with your own eyes comes first. After that, look for a written estimate that names the job, the materials, the completion date and the price, which is what the FTC tells homeowners to ask for. The last two things to look for are a contractor who calls back when something goes wrong and a good report from a client you already sent.
Checks can still miss things. If a job goes wrong after all of this, here's what to do after a bad vendor referral.
How do you find reliable contractors to recommend?
Start with people you already trust, as the FTC advises homeowners to do. Ask the home inspectors you work with, the agents in your office and your past clients who they called and would call again. Then run the four checks above before any of those names reach a client.
If you're starting from an empty list, see how to build a vendor network as a new agent. It covers where to find your first vendors.
This article is general information, not legal advice. Rules change, so confirm details with your state's licensing board or your broker.
Sources
- Federal Trade Commission: How To Avoid a Home Improvement Scam
- Oregon Construction Contractors Board: home page and license search
- Washington Department of Labor and Industries: Verify a contractor, tradesperson or business
Proferral checks Oregon and Washington licenses for you
For providers licensed in Oregon or Washington, Proferral checks the license against the state roster every night and shows the date of the last check. It covers those two states only, and it doesn't check insurance, estimates or workmanship, so the other three checks stay with you.
It's free, no credit card needed, and you're never charged unless you choose Pro.