Due diligence before choosing contractors

AmmDram

Other than looking for reviews and personal recommendations, what else can help when trying to choose a contractor? 

I’ve found one who seems to know their stuff, didn’t come across as dodgy but when I looked on companies house, they seem to dissolve their company every year or two, only to register a new one with a slightly different name. 

Is this something I should be concerned about, or not really? It’s been a nightmare getting anyone to come and quote so I don’t want to rule out someone with good reviews for the wrong reason… thanks. 

Ectophile

Is this something I should be concerned about, or not really?

That would be a massive red flag to me.  If something goes wrong, and they don't finish the work, then the moment you try to sue them for the return of any stage-payments you have made, they will dissolve the company.

HampshireH

Word of mouth is the best recommendation I find.

I tend to have a look on Facebook when I'm looking up a company or needing one.

Generally if they are repeatedly tagged as recommended (not just by mates but by those who have used them) I tend to take more notice and message them via their website.

I also contact those who have said they have used them to see how it went (like a reference) figure if youre happy to recommend someone you would be happy to share why

AmmDram

HampshireH said:

Word of mouth is the best recommendation I find.

I tend to have a look on Facebook when I'm looking up a company or needing one.

Generally if they are repeatedly tagged as recommended (not just by mates but by those who have used them) I tend to take more notice and message them via their website.

I also contact those who have said they have used them to see how it went (like a reference) figure if youre happy to recommend someone you would be happy to share why

Yes, I’ve asked around people I know and not been able to get many personal recommendations. It’s got to the stage where I am tempted to knock on doors if I see a house that has had similar work done and ask if they’re happy with it and who did it. Tried that once so far on our street and was told they weren’t happy, but they wouldn’t tell me who did it as it was a close friend/family of their next door neighbour who also had it done at the same time and I think they didn’t want it getting out locally that they’d slagged them off!

The companies I had a good feeling about and felt I could trust from their reviews, photos, website, membership of professional trade organisations etc are all too busy to even quote, sadly. 

One builder who came said we didn’t need building regs/building control or PP (which isn’t what the council said) so I am not keen on moving forward with that one… 

AmmDram

Ectophile said:

Is this something I should be concerned about, or not really?

That would be a massive red flag to me.  If something goes wrong, and they don't finish the work, then the moment you try to sue them for the return of any stage-payments you have made, they will dissolve the company.

Thanks. Was wondering if it’s the sort of thing with a perfectly innocent explanation, but that would be concerning as it does seem to be a pattern. Such a shame as they have great reviews. I suppose their 20 year guarantee would be worth nothing if they didn’t exist anymore?

Mistral001

AmmDram said:

Ectophile said:

Is this something I should be concerned about, or not really?

That would be a massive red flag to me.  If something goes wrong, and they don't finish the work, then the moment you try to sue them for the return of any stage-payments you have made, they will dissolve the company.

Thanks. Was wondering if it’s the sort of thing with a perfectly innocent explanation, but that would be concerning as it does seem to be a pattern. Such a shame as they have great reviews. I suppose their 20 year guarantee would be worth nothing if they didn’t exist anymore?

You did very well to check the company status.  It is a lesson to us all.  As for the great reviews, they probably have a lot of relatives.  

EssexExile

AmmDram said:

HampshireH said:

Word of mouth is the best recommendation I find.

I tend to have a look on Facebook when I'm looking up a company or needing one.

Generally if they are repeatedly tagged as recommended (not just by mates but by those who have used them) I tend to take more notice and message them via their website.

I also contact those who have said they have used them to see how it went (like a reference) figure if youre happy to recommend someone you would be happy to share why

Yes, I’ve asked around people I know and not been able to get many personal recommendations. It’s got to the stage where I am tempted to knock on doors if I see a house that has had similar work done and ask if they’re happy with it and who did it. Tried that once so far on our street and was told they weren’t happy, but they wouldn’t tell me who did it as it was a close friend/family of their next door neighbour who also had it done at the same time and I think they didn’t want it getting out locally that they’d slagged them off!

The companies I had a good feeling about and felt I could trust from their reviews, photos, website, membership of professional trade organisations etc are all too busy to even quote, sadly. 

One builder who came said we didn’t need building regs/building control or PP (which isn’t what the council said) so I am not keen on moving forward with that one… 

That's exactly what I did, I saw a house locally having an extension built so I knocked and asked. The lady invited me in to show me what they were doing and said everyone was great except the plumber. So we got the same company to do our extension and they were great, they must've used the same plumber again though.

AmmDram

I’ve found another ‘company’ who seems to be made up of more than one person (he works with his sons) but isn’t listed on companies house, isn’t VAT registered (that I can find on a google search, at least) yet says they’ve been in business 16 years… and when I search the name, it comes up on different sites with different addresses. 

They have photos and good reviews over many years and have done work very similar to what we need.

He is also registered with FMB and Trustmark. 

 Is it possible for them to not be registered as a company but still be above board? This is so hard, I keep finding companies, thinking I may have cracked it and then they either aren’t available or there are red flags!

Ectophile

People are allowed to work as sole traders, without registering a company.  They are allowed to operate under a trade name.  Sole traders can often keep their income under the limit at which they have to register for VAT.

So none of those is really a problem.  But make sure you know who your contract is with.  If something goes wrong, you then sue them personally.  Which can be a lot more successful than trying to chase a company that's in teh process of being wound up.

AmmDram

Ectophile said:

People are allowed to work as sole traders, without registering a company.  They are allowed to operate under a trade name.  Sole traders can often keep their income under the limit at which they have to register for VAT.

So none of those is really a problem.  But make sure you know who your contract is with.  If something goes wrong, you then sue them personally.  Which can be a lot more successful than trying to chase a company that's in teh process of being wound up.

Great, thank you for the info, this is very useful. 

Mistral001

AmmDram said:

I’ve found another ‘company’ who seems to be made up of more than one person (he works with his sons) but isn’t listed on companies house, isn’t VAT registered (that I can find on a google search, at least) yet says they’ve been in business 16 years… and when I search the name, it comes up on different sites with different addresses. 

They have photos and good reviews over many years and have done work very similar to what we need.

He is also registered with FMB and Trustmark. 

 Is it possible for them to not be registered as a company but still be above board? This is so hard, I keep finding companies, thinking I may have cracked it and then they either aren’t available or there are red flags!

Absolutely they can be above board if they are not a registered company.  There is no requirement by law that they should.  In fact there was a time when people would not use Ltd companies because they have limited liability and can go bust and set up the next day leaving behind creditors all at no risk to their own personal finances. Many such companies, especially in the building industry, do just that. 

The fact that they are not registered for VAT suggests that their turnover is less than about £85k, which means that they either, do only small jobs which do not require many materials, or they get their customers to buy the materials and only charge for their labour and small items such as nails and sealants etc.