How Do You Vet a Contractor Before You Sign Anything?

Vetting a contractor means confirming four things before you sign: they hold the license your job legally requires, they carry current liability and workers' compensation insurance, real customers with similar jobs were happy, and the contract protects your money as well as theirs. Most of it takes under an hour with a phone and a browser, and it filters out the large majority of the problems homeowners later describe as bad luck.

How do you check a contractor's license?

Ask for the license number in writing, then look it up yourself on your state or provincial licensing board's website rather than trusting a photo of a card. Confirm the name on the license matches the business on the quote, the classification covers your work (a general building license does not always cover electrical or plumbing), the status is active, and there are no open disciplinary actions. Some trades are licensed by the city or county instead, so call the local building department if the state site shows nothing.

What insurance should a contractor carry?

• General liability insurance pays for damage the crew causes to your house or a neighbor's property.
• Workers' compensation covers a worker hurt on your property. Without it, an injured worker may be able to claim against your homeowner's policy.
• Ask for a certificate of insurance sent directly from the insurance agent to you, with you named as the certificate holder. A certificate the contractor emails you can be old or altered.
• Check the policy dates cover the whole project, not just the week you sign.

Which reference questions actually reveal problems?

Ask for three customers from the last 12 months whose jobs were similar in size and type to yours. Generic praise tells you little, so ask specific questions and listen for hesitation.

1. Did the job finish within a few weeks of the promised date, and how did they explain delays?
2. Were there change orders, and were they priced in writing before the work was done?
3. Did the same crew show up most days, or did subcontractors rotate in and out?
4. How did they handle the punch list and any problems after the final payment?
5. Would you hire them again for a bigger job?

If you can, look at one finished job in person. Tight caulk lines, level tile and clean trim edges say more than any photo gallery. Also search the business name with words like complaint or lawsuit, and check your local court records site if your area publishes them.

Should the contractor pull the permit?

Yes. The licensed contractor doing the work should apply for the permit in their name. A contractor who asks you to pull an owner-builder permit is shifting legal responsibility for code compliance onto you. Permits also bring inspections at key stages, which is free quality control on framing, wiring, plumbing and insulation that will be hidden behind drywall.

What payment terms are reasonable?

Ask for lien waivers from the contractor and major suppliers as you pay. In many places an unpaid supplier or subcontractor can put a lien on your house even after you have paid the general contractor in full.

What belongs in the written contract?

• The full scope of work, including materials by brand, model and finish where it matters.
• Start date, an estimated finish date, and what happens if either side causes a delay.
• Who handles permits, inspections, debris removal and daily clean-up.
• How change orders are requested, priced and approved, always in writing before the work.
• The payment schedule, warranty terms and the contractor's license number.

What are the red flags that mean walk away?

• Door-to-door offers after a storm with pressure to sign today.
• No physical business address, or a phone number that only reaches voicemail.
• A bid far below every other bid, with vague line items.
• Reluctance to put anything in writing or to provide insurance from the agent.
• Suggestions to skip the permit to save money or time.

How do you compare bids fairly?

Line the quotes up side by side and check that each one prices the same scope. One bid may include permits, debris haul-away and final paint while another leaves them out, which makes it look cheaper than it is. Ask each contractor to break out labor, materials, allowances and any subcontracted trades. Allowances deserve a close look: a low cabinet or tile allowance keeps the headline price down, but you pay the difference when you choose real products.