Why This Conversation Matters Before You Sign

Hiring a contractor is one of the biggest financial decisions a homeowner makes — yet many people skip the vetting stage entirely, trusting a referral or a polished website without asking a single probing question. That gap between "they seem trustworthy" and "I have it in writing" is where disputes, cost overruns, and unfinished projects are born.

This checklist gives you the specific questions to ask — and the answers to listen for — before you commit to anyone. If you're still deciding which projects to hand off versus tackle yourself, our guide to DIY vs. professional home improvement is a useful starting point. And if you're newer to homeownership, our primer for first-time homeowners can help you build a clearer renovation plan before you reach out to anyone.

Use the checklist below during your initial contractor conversations — ideally while collecting at least three bids.

Credentials & Legal Standing

Ask for the contractor's full business name, license number, and the state in which they are licensed. Must
Request proof of general liability insurance and workers' compensation coverage — and verify those policies are current. Must
Confirm whether they hold any trade-specific licenses required for your project type (electrical, plumbing, HVAC). Must
Ask whether they have any unresolved complaints filed with your state licensing board or the Better Business Bureau. Should

Scope, Subcontractors & Team

Clarify exactly who will perform the work — the contractor's own crew, subcontractors, or a mix of both. Must
Ask whether subcontractors are licensed and insured, and request that this be confirmed in the contract. Must
Find out who your single point of contact will be during the project and how quickly they respond to questions. Should
Ask how many other projects will be running simultaneously and how that affects availability on your job. Should

Permits & Inspections

Ask which permits your project requires and confirm in writing who is responsible for obtaining them. Must
Clarify who will be present for required inspections and what happens if work fails an inspection. Must
Ask whether permit fees are included in the quoted price or billed separately. Should

Timeline & Project Management

Request a written project schedule with start date, key milestones, and estimated completion date. Must
Ask what circumstances might cause delays and how they will communicate schedule changes to you. Should
Confirm whether your project will be worked on daily or intermittently alongside other jobs. Should

Payment Terms & Contract

Get a fully itemized written quote that separates labor, materials, and any other fees. Must
Agree on a milestone-based payment schedule in writing — never pay the full amount upfront. Must
Ask how change orders are handled: who initiates them, how they are priced, and whether they require your written approval. Must
Confirm what warranty or guarantee is offered on both labor and materials, and get the terms in writing. Should

References & Track Record

Ask for at least three references from projects similar in scope and type to yours, completed within the past two years. Must
Request to see examples of completed work, either in photos or via an in-person site visit if the contractor can arrange it. Should
Ask references directly whether the final cost matched the original quote and how disputes were handled. Nice to have

What to Do With Their Answers

Collecting answers is only useful if you know what a good answer looks like. Here's what to watch for:

  • Licensing: A contractor should be able to give you their license number on the spot. Verify it independently through your state's contractor licensing board — don't rely solely on what they tell you.
  • Insurance: Ask for a certificate of insurance, not just verbal confirmation. Your homeowner's insurance may not cover accidents caused by an unlicensed or uninsured worker on your property.
  • Permits: If a contractor suggests skipping permits to save money or time, treat that as a serious warning sign. Unpermitted work can complicate future home sales and create liability. Learn more about what renovation permits actually cover before you agree to anything.
  • Payment terms: A standard structure might be a modest deposit (commonly 10–30% depending on project size), progress payments tied to milestones, and a final payment only after the work passes inspection and you've reviewed it.
  • References: Follow through and actually call them. Ask specifically whether the project finished on time, on budget, and whether any issues were resolved promptly.

Red Flags to Watch For

Be cautious of any contractor who asks for more than 30–50% of the total cost upfront, pressures you to decide the same day, or is reluctant to provide a written contract. Unusually low bids can signal that a contractor plans to cut corners on materials or labor. If something feels rushed or unclear, take more time — a reputable contractor won't disappear because you asked a follow-up question.

Once you've compared bids and checked references, ask for a written contract that captures everything discussed. Verbal agreements leave you with little recourse if something goes wrong.