How to Hire a Contractor: 12-Step Checklist for Homeowners

How to Hire a Contractor Without Getting Burned

Hiring the wrong contractor can cost you thousands in bad work, delays, and legal headaches. Follow these 12 steps to find a reliable professional.

1. Define Your Project Scope

Write down exactly what you want done before contacting anyone. The clearer your scope, the more accurate your quotes will be.

2. Get 3-5 Quotes

Never hire the first contractor you talk to. Get at least 3 detailed, written estimates. Be wary of quotes significantly lower than others — it usually means corners will be cut.

3. Verify Licensing

Check your state's contractor licensing board to confirm active licensing. Most states require licenses for work over $500-$1,000.

4. Check Insurance

Require proof of general liability insurance ($1M minimum) and workers' compensation. Without it, YOU could be liable for injuries on your property.

5. Read Reviews

Check Google, Yelp, BBB, and Nextdoor. Look for patterns in negative reviews rather than isolated complaints. Ask for 3+ references and actually call them.

6. Ask About Experience

How long have they been in business? How many similar projects have they completed? Can they show photos of past work?

7. Get Everything in Writing

A proper contract should include: detailed scope of work, materials to be used, start/end dates, total price with payment schedule, warranty terms, and dispute resolution process.

8. Never Pay More Than 10-33% Upfront

A standard payment schedule: 10-33% deposit, progress payments tied to milestones, and 10% holdback until work is complete and inspected.

9. Verify Permits

The contractor should pull all required permits. Work done without permits can void insurance, complicate home sales, and result in fines.

10. Don't Make the Final Payment Until Satisfied

Walk through completed work carefully. Create a punch list of any issues. Don't release final payment until everything is resolved.

11. Keep All Documentation

Save contracts, receipts, permits, inspection reports, warranties, and photos throughout the project.

12. Trust Your Gut

If something feels off — pressure to sign quickly, unwillingness to put things in writing, cash-only demands — walk away.