Summary

22 items · 45–90 minutes

Why Vetting Matters Before a Single Nail Is Driven

Hiring the wrong contractor is one of the most costly mistakes a homeowner can make. Incomplete work, code violations, and disputes over payment are all too common — and once a project goes sideways, recovering your money or fixing substandard work can be an uphill battle. Whether you're planning a bathroom remodel, a roof replacement, or a major addition, this checklist walks you through what to verify before you commit to anyone.

For ongoing upkeep projects where you regularly bring in outside help, building these habits is part of sound home maintenance practice. And if you're undertaking a significant project as part of preparing a home to sell, it's worth coordinating that work alongside your broader financial planning — see our guide on preparing your finances before house hunting for context on how renovation investments intersect with real estate decisions.

Credentials and Legal Standing

Verify the contractor holds a current, valid license for your state and the specific type of work being done. Must
Confirm the license number with your state's contractor licensing board — don't rely solely on what the contractor tells you. Must
Ask for proof of general liability insurance and confirm the policy is active and covers the scope of your project. Must
Request a certificate of workers' compensation insurance to protect yourself if a worker is injured on your property. Must
Check whether the business is registered and in good standing with your state's business registry. Should

Bids and Written Estimates

Obtain at least three written bids for the project before making any decision. Must
Ensure each bid breaks down labor, materials, and timelines separately so you can compare them accurately. Must
Ask each contractor to clarify what is and is not included in the bid to avoid surprise charges later. Must
Request a written explanation from any contractor whose bid is significantly lower than the others. Should

References and Track Record

Ask for a list of at least three recent references from comparable projects and actually call them. Must
Ask references specifically whether the work was completed on time, on budget, and to their satisfaction. Must
Search the contractor's business name on your state's licensing board site for any complaints or disciplinary actions. Must
Check the contractor's profile on the Better Business Bureau and at least one review platform for patterns of unresolved complaints. Should
If possible, visit a current or recently completed job site to observe workmanship and professionalism firsthand. Nice to have

Contract and Payment Terms

Insist on a written contract that includes a full project scope, materials list, start and completion dates, and total cost. Must
Confirm the payment schedule in writing — a common structure is thirds: at signing, at midpoint, and at completion. Must
Do not agree to pay more than 30–50% upfront under any circumstances. Must
Confirm the contract includes a written process for handling change orders so any scope changes are documented and priced before work proceeds. Should

Permits and Inspections

Determine which permits are required for your project and confirm in writing that the contractor will pull them. Must
Never allow a contractor to suggest skipping required permits — unpermitted work can create legal, insurance, and resale problems. Must
Request documentation of all passed inspections at the appropriate milestones during construction. Should

Tools and Resources You'll Need

Before you start making calls, gather these resources so the vetting process goes smoothly and you have everything documented in one place.

Required

State contractor licensing board website

Verify a contractor's license status, license type, and any history of disciplinary actions or complaints.

Required

Your state's department of insurance portal

Confirm that an insurance certificate is current and was issued by a legitimate carrier.

Required

A project notebook or folder

Keep all bids, contracts, permits, receipts, and correspondence organized in one place throughout the project.

Required

Better Business Bureau (bbb.org)

Check complaint history and business accreditation for the contractor's company.

Optional

A standard reference call script

Ensure you ask each reference the same key questions to get consistent, comparable feedback.

Red Flags to Watch For

Even after a contractor checks most of the boxes, certain behaviors during the bidding and negotiation phase should give you pause. High-pressure sales tactics — such as insisting a quoted price is only good "today" — have no place in a legitimate professional relationship. The same applies to a contractor who asks for more than 30–50% upfront, refuses to provide a written contract, or cannot produce a license number on request.

Be especially cautious of bids that come in dramatically lower than all others. While it may seem like a good deal, a bid that undercuts competitors by 30% or more often signals that corners will be cut on materials, labor, or both. Similarly, if a contractor suggests skipping permits to "save you money," walk away — unpermitted work can affect your homeowner's insurance and create serious complications when you sell the property.

Never Skip the License and Insurance Check

If a contractor is unlicensed and something goes wrong — a structural failure, an injury, or a fire caused by faulty work — you may have little legal recourse and could even be held liable for injuries on your property. Verifying credentials with your state licensing board takes only a few minutes and is the single most important step in this entire checklist. Do not accept a photocopy of a license card as verification; always cross-check the number directly with the issuing board.

Storm-Chaser and Door-to-Door Contractors

After major weather events, unlicensed or out-of-state contractors often canvass neighborhoods offering quick, discounted repairs. These operators may collect a deposit and disappear, or do substandard work that fails within months. Apply this full checklist to any contractor who approaches you unsolicited — legitimate professionals don't rely on high-pressure door-to-door sales after disasters.

Signing the Contract and Moving Forward

Once you've selected a contractor who has cleared every step of this checklist, the written contract becomes your most important protection. Review it carefully — ideally before any work begins — and make sure every verbal agreement is reflected in writing. Keep copies of all permits, inspection records, and payment receipts in a dedicated folder for the project.

For projects that involve finish work, such as tiling, it's also wise to understand what quality preparation looks like so you can evaluate the contractor's process. Our article on bathroom tile work and surface prep covers the underlying steps that determine whether finish work holds up over time.

This article is intended for general informational purposes only and does not constitute legal or financial advice. Requirements for contractor licensing, permits, and insurance vary by state and municipality — always verify the rules that apply in your area before starting any home improvement project.

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Home & Garden Editorial Team · Contributor

Home & Garden 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.

The content on this site is provided for informational purposes only and should not be considered a substitute for professional advice. While we strive to provide accurate and up-to-date information, we make no guarantees regarding its completeness or accuracy. Always consult a qualified professional for advice specific to your circumstances before making any decisions.