Hiring a tradesperson

How important is price?

It's not always good policy to look for the cheapest – a skilled tradesperson might charge more but take less time and do a better job.

Large franchise operations may charge more to cover the costs of training technicians and buying top-quality equipment. However, if it's just a small job, you don't want to pay top dollar.

Word of mouth is the best way to find your tradesperson.

Ask friends or neighbours who've had work done recently for a recommendation. You could also ask the relevant trade association. Membership of a trade association doesn't guarantee good-quality work, but if things go wrong the association should help resolve the situation.

Check the tradesperson is qualified to do the work.

Plumbers and electricians must have a current practising licence.

Ask for the names of satisfied customers or for references.

With builders and painters it helps to see examples of work that was done less than a year previously.

Briefing the tradesperson

For a large job, prepare a written specification of your requirements. It should include:

• The work to be done. You may need drawings for this. It's important that the job description is as clear as possible, as many disputes arise from misunderstandings.
• Start and finish dates.
• Special requirements – materials or standard of work.
• An agreed schedule of payments, especially for projects that may take some time.
• Cleaning-up responsibilities. Your contractor should have insurance to cover any damage caused by the work.
• Require that you be advised before any extra work is done.

It is your responsibility to have the required consents.

For a small job around the home, all that's required is a few written notes on what's to be done and an expected time-frame.

Always take notes (and date them) at each meeting with your tradesperson.

Quotes and estimates

For a large job, ask 3 companies for a written quote.

A quote is a fixed price that won't vary unless you agree in writing to unforeseen extras. It should list the work to be done, the materials to be used and labour costs, and give proposed start and finish dates.

For building work, check that council levies are included in the quote.

Be wary of quotes that are much lower than the others as it could mean the low tenderer has misunderstood the project or is relying on "extras" to make a profit. If it is hard to get a fixed quote because there might be more work required, ask for a basic quote and an hourly rate for any extra work.

For a small job, get an estimate.

An estimate is more flexible than a quote as it's only a guess at what the job will cost and the tradesperson is not bound by it. However, it should be within 10 to 15 percent of the final cost. If the work is being done on this basis, make it clear you must be consulted before any extra costs are incurred.

All quotes and estimates should be in writing.

They should be signed and dated and should state whether GST is included. You should both sign and date the document to establish a contract. Make sure any variations are in writing.

If you get a job done and no price was agreed, under the Consumer Guarantees Act you are not obliged to pay more than is "reasonable".

Never pay out all the money in advance.

But it's common with bigger jobs for the customer to pay an initial deposit and/or instalments as work progresses.