Things to know when you’re hiring a handyman or contractor
Here’s a comprehensive list of Tips and concerns to be looking at when hiring a handyman or contractor for your home remodeling or repairs.
RESIDENTIAL CONTRACTOR BUSINESS
| RESIDENTIAL BUILDING CONTRACTOR | BC |
| QUALIFYING PERSON IS QB | |
| RESIDENTIAL REMODELER | CR |
| QUALIFYING PERSON IS QC | |
| RESIDENTIAL ROOFER | RR |
| A REGISTERED CONTRACTOR IS NO A LICENSED CONTRACTOR | |
| MANUFACTURED HOME INSTALLER | MI |
| QUALIFYING PERSON IS QI |
TIPS FOR HIRING A CONTRACTOR
Here is some tips for hiring a handyman or contractor in the state of Minnesota, there are several important factors to consider. Here are some key things to look for:
- Licensing: Ask whether the handyman or contractor is licensed. Many states have certification processes for handymen and contractors. Request to see a copy of their license before proceeding with any work.
- References: Inquire about past clients as references. If the handyman has been in the field for a while, other homeowners can vouch for their work. Speaking to previous clients provides insights into the quality of their services. If the handyman is unwilling to provide contact information for references, it may be a red flag.
- Upfront Quotes: Ensure that the handyman can provide a quote ahead of time. Discuss the tasks you need to be done and ask for an estimate.It is helpful to have this information in writing when you want to compare different handyman services.
- Liability Insurance: Check if the handyman has liability insurance. You don’t want to be liable for any injuries they might sustain while working on your property. Just like construction workers or contractors, handymen should have insurance in place to protect both parties.
- Work Guarantee: Ask if the handyman guarantees their work. In case something goes wrong, will they come back and fix it? A written guarantee demonstrates their commitment to quality work.
- Individual or Team Job: Clarify whether the job will be handled by an individual handyman or a team. Some tasks may require multiple people, which could affect the price and foot traffic in your home. Also, inquire if the handyman will be on-site while the team works.
Remember to do your due diligence and choose a handyman or contractor who aligns with your needs and expectations. Taking the time to find the right professional can save you headaches down the road!
Registration vs. Licensing
In Minnesota, the rules around contractors and their ability to perform work for the public are governed by specific laws and regulations. Let me provide some insights:
- Independent Contractor Status:
- Effective January 1, 2009, Minnesota Statutes 181.723 outlines the determination of independent contractor status for individuals involved in commercial or residential building construction or improvements.
- This law was amended in 2012 to replace the independent contractor exemption certificate program with a two-year pilot project for registration of construction contractors.
- Under this framework, all contractors (including independent contractors and other business entities) performing building construction or improvement services must register with the Department of Labor and Industry (DLI) and meet specific criteria.
- Nine-Factor Independent Contractor Test: To be considered an independent contractor, an individual must satisfy the following nine factors:
- Maintains a separate business: The individual has their own office, equipment, materials, and facilities.
- Federal tax identification: The individual holds or has applied for a federal employer identification number (EIN) or has filed business or self-employment income tax returns with the IRS.
- Contractual control: The individual controls the means of performing the services under the contract.
- Main expenses: The individual incurs the primary expenses related to the services they perform.
- Satisfactory completion responsibility: The individual is responsible for completing the contracted services.
- Compensation basis: Compensation is based on commission, per-job, or competitive bid (not other bases).
- Profit or loss: The individual may realize a profit or suffer a loss under the contract.
- Business liabilities: The individual has continuing or recurring business liabilities or obligations.
- Business success dependence: The individual’s business success depends on the relationship between receipts and expenditures.
- Owner or Partial Owner of Business Entity:
- Even if an individual performing building construction or improvement services is an owner or partial owner of a business entity (such as an LLC), they are considered an employee of the general or hiring contractor unless certain conditions are met:
- The business entity meets the nine-factor test.
- Invoices are submitted in the name of the business entity.
- The business entity is registered with the Secretary of State and the Department of Labor and Industry (if required by law).
- Even if an individual performing building construction or improvement services is an owner or partial owner of a business entity (such as an LLC), they are considered an employee of the general or hiring contractor unless certain conditions are met:
- Registration vs. Licensing:
- Being registered as a contractor does not authorize one to contract with homeowners for construction or remodeling work.
- It is illegal for a registered contractor to hold themselves out as a licensed contractor or imply that their registration number is a license number12.
In summary, while registration is necessary for contractors, it does not grant them the right to perform work for the public without adhering to additional requirements and regulations. Contractors must comply with the law to ensure quality and safety in construction projects.
- Photo by Pixabay
- Photo by Rene Asmussen
So, the bottom line is do your research and make sure the business you hire for your project is licensed.