How to hire a contractor without getting burned
The difference between a smooth project and a horror story is mostly decided before any work begins, in how you vet and hire. A good contractor is licensed, insured, specific in writing, and in no rush to take your money. Here is how to find that contractor and screen out the rest.
Key takeaways
- Verify a license and current insurance (both liability and workers' compensation) before a contractor sets foot on your property.
- Get at least three itemized written bids for the same scope, so you are comparing like for like.
- Never pay for the whole job up front; tie payments to milestones and hold a final payment until the work passes inspection.
- A written contract should name the scope, materials, timeline, payment schedule, and how change orders are handled.
- The biggest red flags are a large cash deposit, a door-to-door pitch, no written contract, and a price far below every other bid.
Check the basics first
- License: confirm the contractor holds the license your state or city requires for the trade, and that it is current. Most states have a free online lookup.
- Insurance: ask for proof of general liability and workers' compensation. If a worker is hurt on an uninsured job, the liability can land on you.
- References and recent work: ask for a few jobs from the last year and actually call them. How the contractor handled problems matters more than photos of finished work.
- Reputation: read reviews for patterns, not single ratings; how a contractor responds to a complaint tells you more than a five-star average.
Get comparable bids
Collect at least three written bids for the identical scope of work. If one bid is dramatically lower, it usually means something was left out: cheaper materials, no tear-off, no permit, or a plan to make it up in change orders later. A fair bid is itemized, so you can see materials, labor, and allowances separately.
Get it in writing
- Scope of work in detail, including the materials and model numbers, not just 'new roof' or 'new bathroom.'
- A payment schedule tied to milestones, with a modest deposit and a final payment due only after the work is complete and inspected.
- Start and substantial-completion dates, and who pulls the permit (a licensed pro should pull it, never you).
- How change orders are priced and approved, in writing, before any extra work happens.
- The manufacturer and workmanship warranties, and a lien waiver from the contractor and any subcontractors at final payment.
Walk away from these red flags
- A demand for a large up-front payment or cash only. Many states cap the deposit a contractor can take, so an oversized one is a warning.
- A high-pressure, sign-today pitch, or a deal that is only good if you commit on the spot.
- No written contract, no license number, or reluctance to show insurance.
- A bid far below all the others, or a contractor who shows up door to door after a storm.
Frequently asked questions
How many quotes should I get for a home project?
How much should I pay a contractor up front?
Should the contractor pull the permit?
See the numbers for your town
These guides are national. Open the explorer to see real cost ranges modeled for your town across every project.
Cost figures in this guide are modeled national ranges for general planning, not quotes. Local pricing varies, always get an on-site assessment from a licensed pro before you commit. Evergreen guide