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Hiring a Contractor: Questions Every Homeowner Should Ask Before Signing

Home & Garden Editorial Team 6 min read · Mar 4, 2023
Hiring a Contractor: Questions Every Homeowner Should Ask Before Signing

Photo credit: lifestyle-insights.com

In this article
  1. Why the questions you ask upfront matter most
  2. What to do with your answers

Choosing the right contractor protects your project, timeline, and budget. Use this checklist to evaluate bids, verify credentials, and set clear expectations.

Key Takeaways

  • Always verify a contractor's license, insurance, and references before signing any contract.
  • Get at least three written bids and compare scope, materials, and payment terms line by line.
  • A detailed written contract is your main protection if something goes wrong during the project.
  • Understand your local permit requirements before work begins; unpermitted work can create costly problems at resale.
  • A large upfront deposit is a warning sign; stagger payments to project milestones instead.

Why the questions you ask upfront matter most

Hiring the wrong contractor is one of the more expensive mistakes a homeowner can make. Work done poorly, permits skipped, or payment terms left vague can turn a straightforward renovation into a months-long dispute. The good news is that most problems are avoidable when you ask the right questions before any paperwork is signed.

This checklist covers every stage of evaluating a contractor: verifying credentials, reading a bid, reviewing a contract, and setting expectations for the work itself. If you are still deciding whether to hire out a project or tackle it yourself, see our look at common DIY myths that end up costing families more before going further.

Work through these questions with each contractor you are seriously considering. Take notes. A contractor who resists answering straightforwardly is giving you useful information.

Credentials and legal standing

Ask for the contractor's state license number and verify it directly with your state licensing board before the conversation goes further. Must
Request proof of general liability insurance and workers' compensation coverage, and call the insurer to confirm the policy is active. Must
Ask whether any subcontractors will be used, and confirm that they carry their own license and insurance as well. Must
Check the contractor's name against your state attorney general's office or consumer protection database for any complaints or disciplinary actions. Should

References and past work

Request at least three references from projects completed within the past two years that are similar in scope to yours. Must
Contact each reference and ask whether the project finished on time, on budget, and whether they would hire this contractor again. Must
Ask references specifically whether the contractor communicated problems promptly or left them to discover issues on their own. Should
Request photos or an in-person visit to a comparable finished project if the scope of your work is large. Nice to have

Bids and scope of work

Collect written bids from at least three contractors using the same written description of your project so the quotes are genuinely comparable. Must
Review each bid line by line and ask the contractor to clarify any item that is vague, bundled, or listed as an allowance. Must
Ask what is explicitly not included in the bid so you can anticipate where change orders are likely to appear. Should
Ask how the contractor handles unexpected conditions, such as water damage or structural issues found during work, and get the change-order process in writing. Should

Permits and inspections

Ask directly which permits your project requires and confirm that the contractor will pull them in their own name, not yours. Must
Verify with your local building department independently what permits are required, since some contractors may underestimate to speed up the job. Must
Ask how inspections are scheduled and who is responsible for being present when an inspector visits the site. Should

Contract terms and payment

Confirm that the contract includes a detailed project description, materials list, start date, estimated completion date, and total cost. Must
Tie all payment installments to specific, verifiable project milestones rather than calendar dates or verbal requests. Must
Ask what warranty the contractor offers on labor and confirm it appears in the written contract with a specific duration. Must
Ask how disputes are handled and whether the contract includes a mediation or arbitration clause before any litigation clause. Should

Project logistics

Ask who your primary point of contact will be during the project and how quickly they respond to calls or messages during work hours. Must
Clarify daily work hours, site cleanup expectations, and how the contractor will protect areas of your home not involved in the project. Should
Ask what the contractor's policy is if the project falls significantly behind schedule, and get any schedule commitments written into the contract. Nice to have

What to do with your answers

Once you have completed this checklist with two or three contractors, compare your notes side by side. Bid price matters, but it is rarely the only thing that matters. A lower number built on vague scope, unlicensed subcontractors, or a lump-sum payment structure can cost more in the end than a higher bid with clear terms.

Watch out for pressure to decide quickly

A contractor who pushes you to sign the same day, offers a discount that expires immediately, or says the price will go up if you wait is using tactics that work against your interests. Legitimate contractors expect homeowners to compare bids and review contracts carefully. Take the time you need, and treat any urgency pressure as a signal to slow down rather than speed up.

Before you sign, read the contract once more with fresh eyes. Check that every verbal commitment from the sales conversation appears in writing. If a contractor promised a specific start date, a particular material, or a warranty on labor, those details belong in the contract. If they are missing, ask for them to be added before you sign.

Payment structure is worth one more look. A common guideline used by consumer protection offices is to limit an initial deposit to no more than 10 to 30 percent of the total project cost, with remaining payments tied to completed milestones. Paying in full before work is done removes your most direct form of leverage.

Thinking carefully before committing money to a major project is the same discipline that applies to any large household expense. Our household spending decision checklist walks through a useful set of questions for any purchase where the stakes are significant.

Home & Garden Editorial Team

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Home & Garden Editorial Team

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.

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