Monday, August 3

Hiring the Right Contractor

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We’re wanting to make renovations to our home that will improve aesthetics and overall energy efficiency. How can we make sure we hire a contractor who will do a good job and stay within our budget?

— Bridget and Neil

Dear Bridget and Neil: Great question! Renovations can be the perfect time to improve your home’s energy efficiency. To make sure you get those energy savings, it’s important to do some planning right from the beginning.

The first step is to educate yourself so you can be in control of your project. Helpful, easy-to-understand energy-efficiency information is available for virtually any area of your home and any renovation project. Just be sure to use reputable sources like, or your local electric co-op.

An energy auditor can help you determine the work you will hire a contractor to do and may be able to suggest contractors who do quality work. Photo credit: United Cooperative Service

You’ll need that knowledge so you can judge the solutions each potential contractor proposes. Some products or methods that are sold as effective energy-efficiency solutions may not work as well as they claim or may be too expensive relative to the energy savings they provide.

It’s important to talk to your local building department to find out if your project requires a permit and inspections. Some contractors may suggest doing the work without a permit, but unpermitted work can cause problems if you need to file an insurance claim down the road or when you get ready to sell your home.

You can also use your newfound knowledge to ask the right questions of potential contractors. Ask about the product to be installed, the energy savings the project should yield and whether it will improve comfort. Because energy-efficiency installations and construction are specialized, most measures are unlikely to be installed correctly unless the installer has experience and, hopefully, some appropriate training or certification.

Finding a contractor can be a challenge, especially in rural areas. To find them, use your online search engine to “find a contractor in your area.” If you’re in a sparsely populated area, the right contractor may be located an hour or two away. Your electric co-op may be able to provide a list of approved contractors in your area. You can also check with a local energy auditor for contractor names.

You may decide you’d like to hire a small specialty contractor or a larger general contractor. Either way, it’s crucial to hire someone with a contractor’s license, a local business license and three types of insurance: liability, personal injury and workers’ compensation. Check references to verify the contractor has a solid history of cost-control, timeliness, good communication and excellent results, including significant energy savings. You might learn that your lowest bidder has a tendency to increase the price after the job has begun.

As you choose among contractors, quality should be an even more important consideration than price. Poor-quality energy-efficiency work will not deliver maximum savings.

Once you have settled on a contractor, be sure to get a written contract. It should cover “as built” details and specifications that include energy performance ratings you have researched ahead of time such as:

  • The name of the individual doing the installation
  • The specific R-value if you’re insulating
  • The make, model, AFUE (annual fuel use efficiency) and COP (coefficient of performance) ratings if you’re replacing a furnace (and ask that an efficiency test be conducted before and after the work)
  • The make, model and EER (energy efficient ratio) rating if you are replacing the air conditioner (some contractors are able to check for duct leakage in the supply and return ductwork with a duct blaster if you’re doing any furnace or air-conditioning work)
  • Whether the contractor must pay for the necessary building permits

Finally, be cautious about prepaying. Keep the upfront payment as low as possible, set benchmarks the contractor must meet to receive the next payment and make sure a reasonable amount of the payment is not due until the project is completed, passes building inspections and you are fully satisfied. If you don’t feel qualified to approve the project, you could even require testing or inspection by an independent energy auditor.

Additional Resources

For articles explaining some of the energy-measurement terms that can help you make wise energy-efficiency decisions on your renovation project, visit these sites:

For additional advice for hiring a contractor, visit these sites:


About Author

Partick J. Keegan

Patrick Keegan writes on consumer and cooperative affairs for the National Rural Electric Cooperative Association, the Arlington, Va.-based service arm of the nation’s 900-plus consumer-owned, not-for-profit electric cooperatives. He brings over 30 years of energy-related experience at the local, state, national, international, and non-profit level. His experience spans residential and commercial energy efficiency and renewables.

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