Did you know that even if you pay a contractor in full, a supplier or subcontractor can legally put a lien on your property if the contractor doesn’t pay them?
Checking a contractor’s records with the Contractors State License Board will help you uncover if they have had complaints from their subcontractors. Asking how long they’ve been in business and if they have filed bankruptcy in recent years will also help you determine a contractor’s financial stability. You want to know if any of the contractors you are considering have a history of these kinds of problem before you go any further towards working with them.
It is also a good idea to ask them what their overhead and profit is for a project. They should be able and willing to share that with you.