1. A Written Estimate

A written estimate, signed by the demolition contractor, that clearly outlines the expected costs of your demolition project.  A written estimate is the first part of hiring a demolition contractor. You should never hire a demolition contractor without receiving a written estimate first.

2. Proof of Insurance

Proof of Insurance can be obtained from your demolition contractor’s insurance agent. This verifies that your demolition contractor is insured for the demolition work he is doing. Also make sure you’ve check his contractor’s license and verified his surety bond as well.

3. Contract

A contract between you and your demolition contractor should clear spell out the work to be performed, the time frame for that work to be done in, and a schedule of payments to be made. A contract should also include any required clauses (various states have various required clauses that must be in any contract) and an outline of how disputes with your contractor will be resolved (mediation, arbitration, etc).

If you have these three things from a demolition contractor you are ahead of the game and headed for a much better experience than those who haven’t secured this information.

Before you hire a demolition company in the Los Angeles area there are five questions everyone should ask their demolition company. These questions will help you determine whether you have the right demolition company for your project.

Are You Licensed By the State of California?

The default answer to this question should be “Yes” followed by “Here’s my license number.” If the answer is No. Or It doesn’t matter. Or Yes but I can’t give you my license number for some reason … Then walk away and find a licensed demolition company.

Are You Insured and Can You Provide Proof of Insurance?

Most demolition companies in Los Angeles will claim to have insurance, but you need to verify that they have enough insurance and that their insurance policy covers the type of demolition work you are hiring them to do. All you have to do is ask your demolition company to provide the name and phone number of his or her insurance agent. Call the insurance agent and have him or her fax you a Proof of Insurance Certificate.

Can You Provide Three Recent References?

Any good demolition company in Los Angeles should be able to provide three to four recent (within the last three to six months) references. These should be work references from satisfied client. You should be able to call each client and check on the quality of the contractor’s work. These references should also serve as credit references as well.

How Many of These Demolition Projects Have You Done?

There is no magic number when it comes to how many demolition projects a demolition company does before he is “good”. But you ideally want to hire a demolition company that has a lot of experience in both demolition and in the particular type of demolition service you are asking him to perform.

What Happens If I’m Not Satisfied? 

This could also be called “Write a good contract”. You need to clearly outline what happens if you are not satisfied with a contractor’s work and how any disputes with your demolition company will be resolve.

If you ask your demolition company these questions you’ll be better prepared and better informed.

A demolition contractor with poor credit, someone who doesn’t pay his subcontractors or his workers, can do a job and leave you holding the bag for paying everyone else involved. This can land you in a sea of litigation that can last for years and cost thousands of dollars.

So how do you check your demolition contractor’s credit? You can either ask your demolition contractor for recent credit reference. Any good demolition contractor should be able and willing to provide this information. If a demolition contractor refuses to supply a credit reference be very wary. Would you use a demolition contractor that refuses to supply his contractor license? No. Treat your contractor’s credit the same way.

You can also use services provided by credit bureaus like Experian to check your demolition contractor’s credit. In fact, using these background check services may serve as a safety to ensure that your demolition contractor is providing an accurate credit reference.

The motto when dealing with contractors should always be, Trust, but Verify.

Ask your demolition contractor for the name of his insurance company. Also ask for the name of your demolition contractor’s insurance agent and that insurance agent’s contact information. Call your demolition contractor’s insurance agent and ask for proof of insurance. This certificate should only be obtained from an insurance agent, not from the demolition contractor. Unscrupulous demolition contractors often fake insurance certificates.

When you call your demolition contractor’s insurance agent also be sure to ask if certain types of demolition work is forbidden by the demolition contractor’s insurance policy.