How to Hire the Right Contractor

Finding a reliable contractor is key to a successful project. Follow these tips to hire with confidence.

The Hiring Process

1

Get Multiple Quotes

Always get at least 3-5 written quotes from different contractors. This helps you understand the market rate and compare approaches.

A good quote should include:

  • - Detailed scope of work
  • - Material specifications and quantities
  • - Labor costs broken out separately
  • - Timeline and payment schedule
  • - What's NOT included
2

Verify Credentials

Don't just take their word for it. Verify everything independently.

Must-Haves:

  • - Valid contractor license
  • - General liability insurance
  • - Workers compensation insurance
  • - Bonded (for larger projects)

Where to Check:

  • - State licensing board website
  • - Better Business Bureau
  • - Ask for insurance certificates
  • - Call to verify coverage is current
3

Check References

Ask for and actually call 3-5 recent references. Visit completed projects if possible.

Questions to Ask References:

  • - Did they finish on time and on budget?
  • - How did they handle problems or changes?
  • - Was the work site kept clean?
  • - Did they communicate well throughout?
  • - Would you hire them again?
4

Get It In Writing

Never start work without a detailed written contract. Verbal agreements aren't enough.

Contract Must Include:

  • - Full scope of work
  • - All materials specified
  • - Total price and payment schedule
  • - Start and completion dates
  • - Permit responsibilities
  • - Change order process
  • - Warranty information
  • - Insurance requirements
  • - Dispute resolution process
  • - Cancellation terms

Red Flags to Watch For

These warning signs could indicate an unreliable or dishonest contractor.

Demands Large Upfront Payment

Never pay more than 10-30% upfront. Large deposits before work starts is a major red flag.

Cash-Only Deals

Legitimate contractors accept checks or cards. Cash-only often means tax evasion or scams.

No Physical Address

P.O. boxes or no address at all makes it hard to find them if problems arise.

Pressure Tactics

"This price is only good today" or high-pressure sales are warning signs.

Way Below Market Price

If a bid is 30%+ lower than others, expect cut corners, hidden fees, or unfinished work.

Unwilling to Pull Permits

Skipping permits creates liability issues and problems when you sell your home.

Smart Payment Practices

Typical Payment Schedule

10-30% deposit, progress payments tied to milestones, final 10-15% upon completion and inspection.

Pay for Completed Work

Only pay for work that's actually done. Inspect each phase before releasing payment.

Get Lien Waivers

For larger projects, get signed lien waivers from subcontractors and suppliers with each payment.

Document Everything

Keep all receipts, contracts, and communications. Take photos before, during, and after.