Whether you’re hiring a building contractor to renovate your existing home or you’re looking to have a complete structure built from scratch, hiring a reliable contractor is a must to ensure a smooth running and productive job. But not all building contractors are the same. Some building contractors are general contractors, enabling them to build anything in the state. Other building contractors may only have a county or regional license, enabling them to specifically construct residential dwellings only.

A license number should always be checked against government databases to make certain that the building contractor you may hire is verified to do the work. Without the proper building license, a building code enforcement agency can levy fines, stop the project and even take over the property, making you as a homeowner entirely responsible for any costs that may be incurred during the process.

Insurance is almost as important as making certain that your prospective building contractor is licensed. Insurance not only protects the contractor from accidents or damages, but also you as the homeowner. Liability insurance makes sure that the homeowner is responsible for no other costs other than what was in the bid. Workers compensation allows workers who are hurt on your property to be paid directly by an insurance company and not out of your pocket. Builders risk insurance prevents any theft or damaged materials from being paid for by the homeowner. Make certain insurance paperwork is in order before you sign any contracts.

Just because you’ve verified that your building contractor is licensed and insured, doesn’t mean they are going to do a good job. One sure way you can be certain your building contractor is up to par is by asking for references. A few good references go a long way in showing you how good your building contractor really is. A long list of satisfied customers can be a good way to prove that your prospective building contractor is the right person for your job.

But it’s not just all about the contractor having the right license or credentials. A licensed building contractor typically hires out subcontractors to do various projects as needed. Knowing who’s going to be on the job and what experience, licensing or management duties they possess is impertinent to getting the best work done by true professionals.