NAHB and NARI Offer Guidance for Working with Remodelers

With recent reports of several regional home improvement firms abruptly ceasing operations, the National Association of Home Builders (NAHB) and the National Association of the Remodeling Industry (NARI) reaffirm the commitment of the industry to serve home owners.

"The home remodeling industry is committed to high standards of service and professionalism," said NAHB Remodelers Chair Nicole Goolsby Morrison. "Thousands of reputable, community-based companies continue to serve home owners with integrity, transparency, and a strong commitment to customer satisfaction."

"The sudden closures of remodeling firms around the country underscore the critical importance of integrity and accountability in our industry," said NARI President Aaron Enfinger, CR. "NARI and NAHB remain united in our commitment to protecting consumers and upholding the highest ethical standards that safeguard home owners, vendors and the industry as a whole."

As always, NAHB and NARI encourage consumers to protect themselves with smart steps to ensure your contractor is reliable and your project stays on track.

Here are the top 10 ways to protect yourself when remodeling your home:

1. Vet your contractor.
Check state licensing boards, verify insurance, confirm workers' comp and liability coverage and ask for proof. Search for any disciplinary actions or complaints. A legitimate pro will gladly show you everything.

2. Demand a detailed written contract.
Every project needs a clear scope of work, payment schedule, change order process, start and completion dates and warranties in writing. Avoid vague estimates or handshake deals.

3. Protect deposits and never prepay too much.
Pay no more than one-third upfront and only to get work started or materials ordered. Tie future payments to milestones and consider using escrow accounts for large sums.

4. Ask who actually owns the company.
If the firm was recently sold to an investor or conglomerate, understand who is financially backing your project. Ownership changes can affect stability and accountability.

5. Get multiple bids and be wary of outliers.
A bid that is far below others is a warning sign, not a bargain. It often means shortcuts, low-quality materials or cash flow problems.

6. Never pay in cash or through personal apps.
Use traceable payment methods like checks or credit cards. These create paper trails and can help in disputes. Keep receipts and correspondence organized.

7. Confirm permits and inspections are properly handled.
Make sure permits are pulled under your address and the contractor's license number. You are ultimately responsible if the work is unpermitted.

8. Check references and see finished jobs.
Ask for three recent clients and, if possible, visit completed sites. A confident contractor will not mind showing their work.

9. Have a "What if…" plan.
Before work starts, ask what happens if the contractor goes out of business mid-project. See if they have bonding or insurance that covers unfinished jobs.

10. Trust your instincts and document everything.
If you feel rushed or pressured, walk away. Keep a project journal with dates, photos, communications and receipts. This record becomes evidence if a dispute arises.