Home & Garden

Before You Hire a Contractor: Questions Worth Asking

Updated Jan 21, 2023 5 min read
Homeowner reviewing contractor documents at a kitchen table during a consultation meeting.

In This Article

Key Takeaways

  • Always verify a contractor's license and insurance before signing anything.
  • Get at least three written bids and compare scope, not just price.
  • A detailed written contract protects both you and the contractor.
  • Unusually low bids and demands for large upfront cash payments are common red flags.
  • Confirm whether your project requires permits before work begins.
30–60 min

Summary

22 items · 30–60 minutes

Why Vetting Contractors Matters

Hiring the wrong contractor is one of the most common — and costly — mistakes homeowners make. Unlicensed work, poor craftsmanship, and contract disputes can leave you with an unusable space, unexpected expenses, and no legal recourse. The good news is that a structured approach to vetting dramatically reduces that risk.

This checklist is designed for any renovation or repair project where you're bringing in outside labor — whether you're replacing a roof, remodeling a bathroom, or adding a deck. Before you commit to anyone, work through these questions. It typically takes 30–60 minutes to vet a single contractor properly, but that time investment can save you thousands.

Keep in mind that many renovation projects — even some that seem minor — require permits and inspections. See our guide to permits and inspections to understand what your specific project may legally require before work begins.

License and Credentials

Verify the contractor holds a current, valid license in your state by checking your state's contractor licensing board website. Must
Confirm the license type covers the specific work being done (e.g., general contractor vs. electrical or plumbing specialty license). Must
Check whether any complaints or disciplinary actions are on file with the licensing board. Must
Ask how long they've been in business under this license — longevity often signals stability and experience. Should

Insurance Verification

Request a certificate of general liability insurance and confirm it's current and covers your project type. Must
Verify they carry workers' compensation insurance for all employees — this protects you if a worker is injured on your property. Must
Contact the insurer directly to confirm the policy is active, rather than relying solely on a certificate provided by the contractor. Should

References and Track Record

Request at least three references from recent, comparable projects and actually call them. Must
Ask references whether the project finished on time, on budget, and whether they'd hire the contractor again. Must
Search the contractor's name and business online to look for patterns in reviews across multiple platforms. Should
Ask if you can see a recently completed job in person — many reputable contractors can arrange this. Nice to have

Bids and Scope of Work

Obtain written bids from at least three contractors for the same defined scope of work. Must
Ensure each bid itemizes materials, labor, timeline, and what is explicitly excluded. Must
Ask how cost overruns will be handled and whether there's a cap on change-order markups. Should
Question any bid that comes in dramatically lower than the others — it may reflect missing scope, inferior materials, or an unlicensed operation. Should

Contract Terms

Insist on a written contract that includes the full scope of work, materials to be used, start date, completion estimate, and payment schedule. Must
Confirm that the contract addresses how disputes will be resolved and what warranties apply to labor and materials. Must
Avoid contracts that require more than 10–15% upfront as a deposit — final payment should be tied to satisfactory project completion. Must
Ask whether the contractor will pull required permits and include this responsibility in the contract. Should

Communication and Logistics

Clarify who will be on-site daily and whether subcontractors will be used — subcontractors should also be licensed and insured. Must
Establish how often you'll receive project updates and a preferred method of communication. Should
Confirm how site cleanup and material disposal will be handled at the end of each workday and upon project completion. Nice to have

Tools and Resources You'll Need

Gather these resources before you start your contractor search. Having them ready allows you to move quickly and compare candidates consistently.

Required

State Contractor Licensing Board Website

Used to verify that a contractor's license is active and check for any complaints or disciplinary history.

Required

Certificate of Insurance

Documents confirming the contractor carries current general liability and workers' compensation coverage.

Required

Written Bid Template or Comparison Spreadsheet

Helps you compare multiple bids side-by-side on an apples-to-apples basis across scope, materials, and cost.

Required

Written Contract

The legally binding agreement that defines project scope, timeline, payment schedule, warranties, and dispute resolution.

Optional

Reference Call Notes Sheet

A simple form to record responses from references so you can compare answers across multiple contractors.

Once you've collected bids, don't evaluate price alone. Factor in scope of work, materials specified, payment schedule, and timeline. Overlooked line items — disposal fees, permit costs, material overages — can significantly change the real cost of a project. Our article on hidden renovation costs walks through common budget blind spots worth accounting for before you sign.

Never Pay for a Project in Full Upfront

A legitimate contractor will not require full payment before work begins. Typical arrangements involve a modest deposit (often 10–15%), progress payments tied to project milestones, and a final payment upon satisfactory completion. Paying in full upfront removes your most important leverage if the work is substandard or the contractor disappears.

Red Flags to Watch For

Even after working through the checklist, trust your instincts. Certain behaviors during the estimate or negotiation process should raise concern regardless of how good a bid looks on paper.

Unlicensed Work Can Void Your Homeowner's Insurance

If work performed by an unlicensed contractor causes property damage or a safety incident, your homeowner's insurance policy may deny the claim. Additionally, unpermitted work can complicate a future home sale, requiring costly retroactive permits or remediation. Always confirm licensure and permit requirements before any work begins.

A contractor who pressures you to decide immediately, dismisses permit requirements, or can't provide proof of insurance on request is showing you something important about how they operate. The vetting process isn't just about credentials — it's also about communication style, professionalism, and whether this person will be a reliable partner throughout your project.

Home & Garden Editorial Team is the collective byline for our editorial team and contributor network. Articles published under this byline or an editorial pen name are researched, written, and reviewed according to our editorial standards for clarity, consistency, and independence before publication.

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