Hiring a Contractor Without Getting Burned

Before contacting any contractor, write down exactly what you need done. Include dimensions, preferred materials, any access constraints, and your target completion date. A vague request produces vague quotes — and vague quotes invite cost overruns. The more specific your scope, the easier it is to compare bids on equal terms.

Contact a minimum of three contractors and request itemized, written estimates. A single quote gives you no frame of reference. Our guide on comparing contractor quotes beyond price explains what to examine closely — scope assumptions, material grades, and timeline commitments all matter as much as the bottom-line number.

Every state maintains a searchable database of licensed contractors. Look up each candidate by name or license number and confirm the license is active and covers the type of work you need. Then request a certificate of insurance showing current general liability and workers' compensation coverage — and call the insurer to confirm the policy is in force.

Check reviews on multiple platforms and ask the contractor for three recent references from comparable projects. Call those references and ask about timeline, communication, and how punch-list items were handled at the end.

A solid contract should include: a full description of work and materials (including brand, grade, or specifications where relevant); start and estimated completion dates; a detailed payment schedule tied to milestones; who is responsible for permits and inspections; a process for change orders; and a dispute resolution clause. If a contractor resists putting anything in writing, that is itself a red flag.

You are entitled to negotiate terms. Request changes if the payment schedule feels front-loaded or if the cleanup responsibilities are vague.

Many home improvement projects — roofing, additions, electrical, plumbing, structural changes — require permits from your local authority. Clarify in writing who will pull the permits and who is responsible if inspections fail. Unpermitted work can complicate home sales and void insurance claims. Our guide to permits and inspections covers when they are required and what the process looks like.

Pay according to the milestone schedule in the contract — not ahead of it. Withhold the final payment until all punch-list items are completed to your satisfaction and any required inspections have passed. For larger projects, ask the contractor to provide lien waivers from subcontractors and suppliers as each is paid; this prevents liens from being placed against your property for debts the general contractor failed to pay.