Hiring the right contractor matters more than almost any other decision in a home project. A great one keeps you on budget and builds something that lasts; the wrong one can leave you with delays, code problems, or an unfinished job. Ask every contractor these five questions before you sign.
1. Are you licensed and insured?
Licensing requirements vary by state, city, and trade, but many projects (especially plumbing, electrical, and structural work) require a licensed contractor. Ask which licenses apply to your job, then verify them yourself through your state or local licensing board’s online lookup.
Insurance matters just as much. Ask for a certificate of insurance showing general liability and, if they have employees, workers’ compensation coverage. Ideally, have the certificate sent to you directly from the insurance company. Without it, you could be on the hook if someone is hurt or your property is damaged.
2. Who pulls the permits?
Permits protect you by making sure work is inspected and meets code. Unpermitted work can cause problems with insurance claims and when you sell your home. A reputable contractor will know what’s required in your area and pull the permits themselves. Be wary of anyone who suggests skipping them or asks you to pull permits in your name.
3. Can I get a detailed written estimate and contract?
A good estimate breaks out labor, materials, permits, demolition, disposal, and cleanup so you can compare bids fairly. Before work starts, get a written contract that includes:
- A detailed scope of work and the specific materials or brands being used
- Start date and estimated completion date
- Total price and payment schedule
- How change orders are handled and priced
- Warranty terms and how disputes are resolved
4. What’s the payment schedule?
Expect a deposit and then payments tied to completed milestones. Deposits commonly range around 10–30%, and some states limit how much a contractor can collect up front. Avoid paying in full before work begins, and be cautious about cash-only arrangements. Hold back the final payment until the work passes inspection and you’ve walked through the finished job.
5. Can I talk to recent clients and see your warranty?
Ask for two or three references from similar projects in the last year or two, and actually call them. Ask whether the project finished on time and on budget, how problems were handled, and whether they’d hire the contractor again. Then ask what the workmanship warranty covers, for how long, and how to request warranty service.
Red flags to watch for
- Pressure to sign immediately or “today-only” pricing
- Requests for large cash payments up front
- No physical business address, license number, or proof of insurance
- A bid far lower than everyone else’s without a clear explanation
- Reluctance to put things in writing
Start with local quotes
Comparing two or three local contractors gives you the best sense of fair pricing and who you’re comfortable working with. Use the form below to get free quotes for your project, or explore our pages on kitchen remodels, bathroom remodels, and roofing.