Hiring a Contractor: What to Ask, What to Check, and What to Put in Writing

Start With Licensing and Insurance

Before you evaluate a single estimate, confirm that any contractor you're considering holds a valid license for the type of work involved and carries both general liability insurance and workers' compensation coverage. Licensing requirements vary by state and trade, so check with your state's contractor licensing board directly — most maintain searchable online databases.

Why does this matter so much? If an unlicensed contractor makes an error that causes structural damage, you may have little legal recourse. And if an uninsured worker is injured on your property, you could face liability for their medical costs. Ask to see certificates of insurance, and consider calling the insurer to confirm the policy is active before work begins.

Not every project requires the same credentials. Electrical, plumbing, and structural work almost always require licensed professionals. For context on where the DIY-to-professional line falls, see our guide on where DIY ends and a licensed contractor begins.

The Right Questions to Ask Before You Hire

An initial conversation with a contractor tells you a lot — if you know what to ask. These aren't trick questions; a qualified professional will answer them without hesitation.

Beyond these questions, get at least three written estimates for any significant project. A wide range of estimates often signals misaligned understandings of scope — not necessarily that one contractor is better or worse. Ask each to explain what's included and what isn't.

What Your Written Contract Must Include

A verbal agreement is not a contract. Every project — even a modest one — should be backed by a signed written document before a single tool is picked up. A solid contract should include:

• Detailed scope of work: What exactly will be done, including materials, finishes, and dimensions.
• Payment schedule: Tied to project milestones, not arbitrary dates. A deposit of 10–30% is common; paying in full upfront is a red flag.
• Start and estimated completion dates: With provisions for reasonable delays.
• Permit responsibility: Confirm who pulls and pays for required permits — typically the contractor.
• Change order process: Any deviation from the original scope should be documented and signed before work continues.
• Warranty terms: Both for labor and materials.
• Lien waiver provisions: These protect you from subcontractors filing liens on your property if the general contractor doesn't pay them.

If a contractor is reluctant to put terms in writing, treat that as a serious warning sign.

Spotting Red Flags and Protecting Yourself

Even after doing your homework, some situations warrant extra caution. Common red flags include: demanding full payment before work begins, no verifiable physical business address, pressure to make a quick decision, offering to skip permits to save money, or being unable to provide references from recent comparable projects.

Skipping permits is particularly risky. Unpermitted work can complicate home sales, void homeowner's insurance claims, or require costly removal and redo. Your local building department can confirm what's required for your specific project.

If you're still deciding whether to hire out or tackle a task yourself, our practical breakdown on DIY home maintenance vs. hiring a professional can help clarify the decision. For projects like decks that sit in a gray area, see DIY deck building considerations for what's genuinely involved.