Home & Living

Questions to Ask Before Hiring a Home Contractor

Updated Jun 9, 2023 5 min read
Homeowner and contractor reviewing renovation documents together at a kitchen table

In This Article

Key Takeaways

  • Always verify a contractor's license and insurance before signing anything.
  • Get at least three written bids and compare scope, not just price.
  • A detailed written contract protects both parties and sets clear expectations.
  • Never pay more than 10–30% upfront; tie remaining payments to project milestones.
  • Check references and online reviews from recently completed projects.
20–40 min

Summary

18 items · 20–40 minutes

Why the Hiring Conversation Matters as Much as the Work Itself

Renovation projects gone wrong are rarely the result of bad luck. More often, they trace back to a hiring decision that skipped important vetting steps — a contractor without proper licensing, a vague contract that left room for disputes, or a payment schedule that front-loaded all the financial leverage on the wrong side.

The questions you ask before a single nail is driven can determine whether your project finishes on time, on budget, and to a standard you're satisfied with. This checklist gives you a structured framework to evaluate any contractor — whether you're planning a kitchen remodel, a bathroom addition, or a roof replacement.

For context on common misconceptions that can derail renovation planning, see home renovation myths that lead to costly decisions before you get started. And if you're also thinking about how a renovation might affect your home insurance coverage, it's worth reviewing your insurance policy before work begins.

Credentials & Legal Standing

Ask for the contractor's state license number and verify it directly with your state licensing board. Must
Confirm they carry general liability insurance and request a certificate of insurance naming you as an additional insured. Must
Ask whether they carry workers' compensation coverage for all employees and subcontractors on your project. Must
Check whether the contractor has any unresolved complaints with your state contractor board or the Better Business Bureau. Should

Experience & References

Ask how many projects similar to yours they've completed in the past two years, and request to see photos. Must
Request at least three references from recent, comparable projects and actually call them. Must
Ask references specifically whether the project finished on time, on budget, and how disputes were handled. Should
Search for the contractor's name and business online to find independent reviews beyond the references they provide. Should

Bids, Contracts & Payment

Obtain at least three written bids that itemize labor, materials, and any subcontractor work separately. Must
Ensure the contract specifies the full project scope, materials to be used, start and end dates, and cleanup responsibilities. Must
Negotiate a payment schedule tied to project milestones, not time elapsed — avoid paying more than 10–30% upfront. Must
Confirm that any change orders must be approved by you in writing before additional work proceeds. Should
Ask how cost overruns are handled and whether the bid is fixed-price or an estimate. Should

Permits, Subcontractors & Timeline

Ask who is responsible for pulling required permits — this is legally the contractor's responsibility in most jurisdictions. Must
Find out whether any work will be subcontracted and verify those subcontractors are also licensed and insured. Must
Ask for a written project schedule with key milestones and an expected completion date. Should
Clarify how many other active projects the contractor is managing simultaneously and how often they'll be on-site. Should
Ask what happens if the project runs over the agreed timeline — will there be any remedy or compensation? Nice to have

What to Have Ready Before You Start Interviewing Contractors

Before you pick up the phone, spend some time defining your project scope in writing — even a rough outline helps contractors give you more accurate bids. Know your approximate budget range, your desired timeline, and any materials or finishes you've already decided on.

Required

State Contractor Licensing Board Website

Verify a contractor's license status, check for disciplinary actions, and confirm coverage requirements in your state.

Required

Written Project Scope Document

A clear description of your project helps contractors give accurate bids and reduces the risk of scope disputes later.

Optional

Contractor Comparison Spreadsheet

Track bids, references, insurance status, and notes side-by-side across multiple contractors to support a fair evaluation.

Required

Certificate of Insurance Request Template

A standard form you can send to any contractor asking them to have their insurer confirm coverage details in writing.

Plan to interview at least three contractors. This isn't just about price comparison — it's about assessing communication style, professionalism, and whether each contractor actually listens to your priorities. Bids that come in significantly lower than the others deserve extra scrutiny, not automatic preference.

Unusually Low Bids Are a Red Flag

A bid that comes in dramatically below the others often signals that a contractor plans to cut corners on materials, is underinsured, or may walk away mid-project if costs rise. Always ask a low bidder to explain exactly where their pricing differs before assuming it's a good deal.

Never Pay in Full Upfront

Paying the full project cost before work begins removes nearly all financial leverage you have as a homeowner. If a contractor insists on full payment upfront, consider that a significant warning sign and walk away.

Keep your hiring process organized alongside your broader household finances. The budgeting basics hub offers practical frameworks for tracking renovation costs against your overall spending plan.

For anyone managing a household more broadly, the household management hub is a useful resource for staying organized across home projects. And if you're also considering other types of outside help at home, what to know before hiring a house cleaner walks through a similar vetting process for cleaning services.

Unpermitted Work Can Cost You Later

Work done without required permits can create serious problems when you sell your home, file an insurance claim, or face a code violation inspection. Always confirm that your contractor will pull the appropriate permits before work begins, and verify that required inspections are completed. Consult your local building department if you're unsure what your project requires.

Home & Living Editorial Team is the collective byline for our editorial team and contributor network. Articles published under this byline or an editorial pen name are researched, written, and reviewed according to our editorial standards for clarity, consistency, and independence before publication.

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