Contractor Hiring & Vetting

Contractors must be licensed in most jurisdictions. Verify license is active and matches the work scope. Require proof of insurance.

1. Ask for contractor license number — verify online with your state licensing board

2. Confirm license type covers the planned work (general contractor vs. specialty)

3. Check license is active and in good standing (no disciplinary actions)

4. Request Certificate of Insurance — must show general liability (minimum $1M)

5. Verify workers' compensation insurance (required if they have employees)

6. Call the insurance company to confirm policy is current

7. Check for bonding if required by your jurisdiction

- Unlicensed contractor — no recourse if work is defective, void permits

- License expired or suspended

- Insurance certificate is fake or expired (common scam)

- No workers' comp — YOU could be liable if a worker is injured on your property

- License type doesn't match work scope

- Contractor uses a subcontractor's license

Contact at least 3 recent references. Visit a completed project if possible. Check online reviews and complaints.

1. Ask for at least 3 references from similar projects completed in the last year

2. Actually call the references — ask about quality, timeline, communication, and if they'd hire again

3. Ask references about how problems were handled (reveals character)

4. Visit a completed project if possible

5. Check online reviews (Google, Yelp, BBB, Angi/HomeAdvisor)

6. Search for complaints with your state contractor licensing board

7. Check court records for lawsuits or liens

8. Ask how long they've been in business (established vs. new)

- Not actually calling references (most people skip this)

- Only checking one source of reviews

- Not asking about problem resolution (every project has issues)

- Not visiting completed work

- Ignoring a pattern of complaints

- Not checking licensing board for complaints

Written contract required. Must include scope, timeline, payment schedule, change order process, warranty, and dispute resolution.

1. Get everything in writing — verbal agreements are unenforceable

2. Verify the contract includes: detailed scope of work, materials specified, start and completion dates

3. Check payment schedule — tied to milestones, not calendar dates (e.g., 10% at signing, 30% at rough-in, etc.)

4. Never pay more than 10% or $1,000 upfront (whichever is less) — this is law in many states

5. Verify the change order process is defined (how changes in scope are handled and priced)

6. Check warranty terms — minimum 1-year workmanship warranty

7. Verify the contract includes permit responsibilities (contractor should pull permits)

8. Look for a dispute resolution clause (mediation before litigation)

- No written contract (no protection)

- Paying too much upfront (contractor disappears)

- Scope too vague ("renovation of kitchen" — what exactly?)

- No change order process (surprise costs)

- No warranty clause

- Contract says homeowner pulls permits (contractor should — it's their responsibility)

- No completion date or penalties for delays