Why Vetting a Contractor Matters

Hiring a contractor is one of the most consequential decisions a homeowner can make. Whether you're replacing a roof, remodeling a bathroom, or adding a deck, the person you hire will have significant access to your home and your budget. A poorly chosen contractor can leave a project unfinished, deliver substandard work, or create legal liability — and recovering from those situations is expensive and stressful.

The checklist below organizes the questions you should ask before you sign anything. Take notes during conversations with each candidate, and don't let pressure or urgency rush the process. For projects involving structural, electrical, plumbing, or gas work, always confirm that licensed professionals are involved. See our companion guide on permits and inspections to understand when local authorities need to be involved in your project.

Credentials and Legal Standing

Ask for the contractor's license number and verify it with your state or local licensing board before any further conversation. Must
Request proof of general liability insurance and confirm the policy is current and covers your project type. Must
Ask whether the contractor carries workers' compensation insurance for their employees and any subcontractors. Must
Confirm whether the contractor is bonded, which provides an additional layer of financial protection if they fail to complete the work. Should

Experience and References

Ask how many years the contractor has been in business and how many projects similar to yours they have completed. Must
Request at least three references from past clients with similar project types and follow up by contacting them directly. Must
Ask if you can visit a recently completed job site or view photos of comparable finished work. Should
Search the contractor's business name on your state's licensing board website and the Better Business Bureau for complaints. Should

Project Scope and Subcontractors

Ask the contractor to provide a detailed written scope of work that specifies materials, methods, dimensions, and finishes. Must
Confirm who will be on-site doing the actual work — employees, subcontractors, or a combination. Must
If subcontractors are involved, ask for their names and verify that they are also licensed and insured. Should
Ask how the contractor handles changes to the scope mid-project, and request that a formal change-order process be included in the contract. Must

Timeline and Communication

Ask for a written project timeline with start date, key milestones, and anticipated completion date. Must
Clarify who your primary point of contact will be and how quickly they typically respond to calls or messages. Should
Ask how many other projects the contractor is running concurrently and whether that could affect your schedule. Nice to have

Payment Terms and Contract Details

Request a written contract that covers scope, timeline, payment schedule, warranties, and dispute resolution before signing anything. Must
Confirm the payment schedule — a reasonable deposit is typically 10–30% upfront; be wary of contractors who demand more than half before work begins. Must
Ask what warranties are offered on both labor and materials, and get them documented in writing. Should

Permits and Inspections

Ask who is responsible for obtaining all required building permits and confirm this is spelled out in the contract. Must
Verify that the contractor will coordinate required inspections with local authorities at each phase of the project. Must
Ask what happens if an inspection reveals a problem — understand who is financially responsible for corrections. Should

Tools and Resources for This Process

Gathering the right documents and using reliable verification tools makes the vetting process faster and more reliable. Here's what to have on hand as you work through your questions.

Required

State Contractor Licensing Board Website

Used to verify a contractor's license status, look up complaint history, and confirm any required specialty licenses for the project type.

Required

Certificate of Insurance (COI)

A document provided by the contractor's insurer confirming current liability and workers' comp coverage — request one directly from the insurer to verify authenticity.

Required

Written Bid Comparison Spreadsheet

A simple side-by-side document to compare scope, materials, timeline, and cost across multiple contractor bids.

Required

Better Business Bureau (BBB) Lookup

A free resource for checking a contractor's complaint record and accreditation status before making a hiring decision.

Optional

Lien Waiver Template

A document that protects homeowners from subcontractor or supplier liens after they've paid the general contractor — ask your attorney for an appropriate version.

Required

Local Building Department Contact

Used to confirm which permits your specific project requires and to verify that pulled permits are actually on file during the project.

Before You Sign: Final Considerations

Once you've worked through the checklist, compare your notes across all the bids you received. The lowest price isn't always the best value — a vague scope of work or missing insurance can cost far more than you'd save. Look for a contractor who communicates clearly, provides complete documentation without being asked, and doesn't pressure you to decide quickly.

If a renovation is part of a larger financial plan — perhaps tied to a home purchase or refinancing — it's worth reviewing your overall financial readiness separately. Our credit health checklist can help you assess your position before taking on debt for a major project.

Never Skip the Written Contract

A verbal agreement offers virtually no legal protection if a dispute arises. Every project — regardless of size or cost — should have a signed written contract that details scope, payment schedule, timeline, warranties, and how changes will be handled. If a contractor resists putting terms in writing, treat it as a serious red flag. Consider having a real estate or construction attorney review any contract for a large or complex project before you sign.

Trust your instincts. If a contractor is reluctant to answer any of the questions in this checklist, that hesitation is itself useful information. A reputable professional will expect thorough questions and welcome the opportunity to demonstrate their credentials.

This article is for general informational purposes only and does not constitute legal or financial advice. Requirements for permits, licensing, and insurance vary by state and municipality. Consult a qualified local professional for guidance specific to your project and location.