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Before hiring, ask questions that let you verify the contractor, compare bids on the same scope, assign responsibility for permits and supervision, and protect your money if the schedule or workmanship goes wrong. Confirm licensing and insurance, call references, obtain multiple written estimates, and sign a complete contract before any work starts.
Start with credentials, insurance and references
Use the first conversation to establish who you would actually be hiring. Ask for the contractor’s legal business name, physical address, telephone number, license number where licensing applies, and the name of the person who will sign the contract. Licensing rules differ by state and county, so verify the number directly with the licensing authority for the location of your project rather than relying on a document or website supplied by the contractor. The Federal Trade Commission (FTC) recommends checking credentials, references and complaint history before agreeing to work (FTC guidance on avoiding home-improvement scams).
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Questions to ask
- What is your exact business name and license number, and which government office can I use to verify it?
- Can you provide a current certificate of insurance? What coverage applies to property damage, injuries to workers and injuries to other people?
- Which recent projects are similar to mine, and may I speak with those customers?
- Have you had complaints, unresolved disputes or disciplinary actions that I should understand?
- Who will be my day-to-day contact, and who has authority to make decisions on site?
Call references yourself. Ask whether the contractor finished the agreed scope, kept the site reasonably safe and clean, communicated changes, stayed close to the quoted price, and returned to correct defects. Check relevant state or local consumer-protection offices and, where useful, a local home-builder association for complaint information. No single listing or review proves quality, so look for a consistent record and verify documents independently.
Find out who will perform and supervise the work
A contractor may use employees, specialty subcontractors or a combination. The arrangement is less important than knowing who is responsible for the result and how communication will work.
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Clarify responsibility before signing
- Who will be on site most days?
- Who supervises subcontractors and inspects their work?
- Which trades will be subcontracted, and will you identify them before they begin?
- Who handles site security, deliveries, daily cleanup and protection of occupied parts of the home?
- Who can authorize a change in materials, scope, price or schedule?
Put the responsible people, contact methods and any promises about staffing or supervision in the written agreement. If the person selling the job will not be the person managing it, meet the site supervisor before committing.
Request comparable written estimates
Get more than one written estimate. The FTC’s consumer guidance recommends three written estimates; that is practical advice, not a legal requirement or a guarantee that three bids produce the best price (FTC home-repair scam guidance). A useful estimate describes the work, materials, price and expected completion date instead of presenting only a single total.
Ask what the number includes
- Demolition, preparation, structural work and installation
- Specific brands, grades, sizes or performance standards for materials
- Fixtures and appliances supplied by the contractor versus supplied by you
- Labor, delivery, equipment rental, disposal and final cleanup
- Design, engineering, testing and inspection fees
- Allowances for items not selected yet, with the method for charging more or crediting less
- Work explicitly excluded, such as painting, landscaping, utility upgrades or repairs to concealed damage
Ask how the contractor will price conditions that cannot be seen before demolition, such as rot, unsuitable soil or outdated wiring. A fair comparison uses the same drawings, specifications and assumptions for every bidder. If one price is substantially higher or lower, ask for a line-by-line explanation; the lowest headline price may omit necessary work or use lower-grade materials.
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Compare bids on the same decision points
| Decision point | What to compare | Question to ask |
|---|---|---|
| Scope | Tasks, quantities and finish standards | Are demolition, preparation and cleanup included? |
| Materials | Models, grades, sizes and allowances | What happens if an allowance is exceeded? |
| Price | Total, taxes, allowances and change pricing | Which costs are fixed and which can change? |
| Schedule | Estimated start, completion and key milestones | What events could move these dates? |
| Permits | Applications, fees, inspections and close-out | Who obtains each required permit? |
| Payment | Deposit and progress-payment triggers | What completed work earns each payment? |
| Risk checks | License, insurance, references and complaints | Can I verify each item independently? |
| Warranty | Duration, covered components and exclusions | How do I submit a claim and what remedy is offered? |
Put the full scope in a signed contract
Do not rely on a verbal promise or an estimate alone. Sign a contract before work starts, fill every blank, and keep a copy signed by both parties. The FTC’s contractor guidance identifies the contractor’s identity, work and materials, estimated dates, payment schedule, permits and other promises as contract subjects (FTC, “Hiring a Contractor”).
Contract provisions to require
- Full legal names, addresses, license information where applicable and contact details
- A detailed scope of work tied to drawings, specifications and finish schedules
- Materials, product allowances and who purchases each item
- Estimated start and completion dates, milestones and the process for reporting delays
- The identity of the site supervisor and treatment of subcontractors
- Permit responsibility, permit fees and required inspections
- Total price, taxes, allowances, deposit, progress payments and final-payment conditions
- A written change-order process stating how scope, price and time are approved
- Cleanup, disposal, protection of existing property and responsibility for damage
- Warranty terms, exclusions, claim instructions and the contractor’s correction obligation
- How either party gives notice, handles disputes and ends the agreement
Read every attachment, specification and financing document. Never sign a blank contract or leave blank lines that could later be completed without your agreement. Keep the signed contract, estimates, plans, permits, change orders, invoices, receipts, photographs and messages together.
Confirm permits and local requirements
Ask the contractor to list the permits and inspections the project needs and make the contract state who obtains and closes them. Requirements vary with location, project type and scope; confirm them with your local building department before signing. A contractor’s promise to “handle permits” should identify the actual applications, fees, inspections and final approvals.
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Before work begins, verify
- Whether the work requires building, electrical, plumbing, mechanical, zoning or other approvals
- Who is named as applicant and who is responsible for responding to inspector corrections
- When inspections occur and how failed inspections affect the schedule
- Whether neighborhood, historic-district or homeowners-association approvals are separate from building permits
- How permit close-out documents will be delivered to you
Do not assume that a permit is unnecessary because a contractor says the job is “small.” The local authority, not the estimate, determines the requirement.
Set a realistic schedule and communication plan
Ask for an estimated start and completion date plus the sequence of major work. A responsible schedule identifies dependencies such as design approvals, long-lead materials, inspections and utility shutoffs. It should also explain how weather, labor shortages, owner-supplied items and concealed conditions can change dates.
Questions about delays and changes
- How often will you provide progress updates, and through which channel?
- How quickly will you tell me about a delay, defect or unexpected condition?
- Who can approve a change, and what documentation is required before changed work starts?
- How are added cost and extra time calculated?
- What happens if a selected material is unavailable?
Require written approval for any change in scope, price or schedule before the changed work proceeds. A simple change order should describe the revision, added or credited amount, time impact and signatures or other clear approval from both parties. Keep a running record rather than trying to reconstruct decisions later.
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Protect your money with milestone payments
Ask how much is due up front and what completed work triggers each later payment. Payments tied to defined stages—such as approved foundation work, completed rough-ins or installed finishes—give both sides a measurable reference. Do not pay the entire project price in advance, and make final payment only after the contracted work is complete and satisfactory. The FTC advises avoiding full advance payment and using a payment schedule linked to completed work (FTC contractor guidance).
Payment safeguards
- Check state or local limits on deposits and progress payments; rules differ by jurisdiction.
- Use a traceable method and keep invoices, receipts and proof of payment.
- Define what “substantial completion” means and what items may remain on a punch list.
- Do not release final payment until agreed corrections, cleanup and required close-out documents are complete.
- Ask whether subcontractors and suppliers will be paid and how lien releases or equivalent documentation will be provided where applicable.
Be cautious if a contractor insists on cash, demands immediate full payment or proposes a loan through a lender they selected. Read financing documents independently, compare the total cost and interest, and never sign an application or agreement you have not read.
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For a new home or substantial remodel, ask for the builder’s warranty in writing before signing. Request its duration, covered components, exclusions, claim procedure, response times and available remedies. The FTC distinguishes a builder warranty from a separately purchased home-warranty service contract: a builder warranty generally addresses permanent parts of the home, while a service contract is an optional product with its own fee, terms and exclusions (FTC, “Warranties for New Homes”).
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Questions the warranty document should answer
- Which structural, mechanical, electrical and plumbing components are covered?
- How long does coverage last, and when does the period begin?
- What maintenance, owner action or notification deadline is required?
- Which items are excluded because a manufacturer warranty applies?
- Are appliances, cosmetic defects, small cracks or relocation expenses excluded?
- Who investigates a claim, who pays for diagnosis and what remedy is available?
Read the actual warranty rather than assuming that “warranted” means every defect is covered. Keep manufacturer warranties and installation records with the builder warranty.
Recognize pressure and scam signals
Pause the decision when a contractor pressures you to sign immediately, refuses to provide license or insurance information, demands full payment up front, accepts only cash, presents a blank contract or insists on a contractor-arranged loan. These warning signs come from FTC consumer guidance; they are reasons to verify and slow down, not by themselves proof of a legal violation (FTC home-improvement scam advice).
Door-to-door offers and claims that a temporary “special price” will disappear today deserve the same caution. Take time to check credentials, obtain competing written estimates and read the agreement. The FTC describes a three-business-day cancellation right in certain off-premises sales situations, but that right does not apply universally to every construction contract; confirm the rule for your transaction and location.
If the work is late, defective or incomplete
Use the contract’s notice and correction process first. Describe the problem in writing, identify the relevant scope or change order, attach photographs and request a specific correction date. Keep copies of every message, invoice, inspection report and payment record. Do not authorize additional work verbally while a dispute is unresolved.
A practical escalation sequence
- Document the condition and compare it with the contract, plans and approved changes.
- Send a written notice that states the correction requested and a reasonable response date.
- Meet or call the contractor, then confirm the agreed actions in writing.
- Use any mediation, arbitration or dispute procedure in the contract.
- Contact the relevant state or local licensing, building or consumer-protection authority for guidance on available remedies.
Before withholding a payment, terminating the contract or hiring another contractor, obtain advice on your jurisdiction’s rules and the contract’s notice requirements. An improvised step can affect warranty rights, liens or your ability to recover costs.
Final hiring checklist
Proceed only when you can answer “yes” to the following:
Quick Recap
- I verified the contractor’s license where required and checked insurance documentation.
- I called recent references and reviewed relevant complaint information.
- I compared multiple estimates based on the same scope and materials.
- The contract identifies work, exclusions, allowances, dates, permits, payments and change orders.
- I know who supervises the site and how delays or defects will be reported.
- Payments are traceable, tied to completed work and not the full price in advance.
- I read the warranty and understand its exclusions and claim process.
- I have signed copies of every document and have not signed blanks or unread financing papers.
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