How to Choose a Contractor: 10 Steps Before You Hire

The right contractor matters more than the lowest price. A good one finishes on time, pulls permits and stands behind the work; a bad one can cost you twice. Use these ten steps before you sign anything.

1. Get recommendations

Ask neighbors, friends and local suppliers who they trust. People who see contractors' work every day — like lumber yard staff and building inspectors — often know who does it right.

2. Check the license

Most states license contractors for some or all home improvement work. look up the contractor's license on your state's official site and make sure it matches the business name on the quote.

3. Ask for proof of insurance

Ask for a certificate of general liability and workers' compensation insurance, sent directly from the insurer. Without it, an injury on your property could become your problem.

4. Read reviews and complaints

Look at recent reviews on several sites and check for complaints with the Better Business Bureau and your state attorney general.

5. Get at least three written quotes

Give each contractor the same scope so you can compare fairly — our quote request templates help. Then compare the quotes side by side.

6. Talk to references

Ask for two or three recent customers with similar projects. Ask whether the job finished on time and on budget, and how problems were handled.

7. Ask who does the work

Will the company's own crew do it, or subcontractors? Who is the on-site contact?

8. Confirm permits

A professional contractor pulls the permits. If someone asks you to pull them, or suggests skipping them, be careful.

9. Agree on a fair payment schedule

Pay a modest deposit and the rest in stages as work is finished. Some states cap deposits — California, for example, limits most home improvement down payments to $1,000 or 10% of the price, whichever is less.

10. Put everything in a written contract

Scope, materials, price, schedule, payment stages, warranty, permits, cleanup and change-order rules should all be in writing before work starts.

Download and use our contractor checklist when you interview contractors.

Frequently asked questions

Sources

• North Carolina Department of Justice — Home repair scams and hiring tips
• Cinderblock — California contractor down payment limits

Prices are national ranges for planning only. Your price depends on your home, your region and the contractor. This guide is general information, not professional, legal or insurance advice.

This guide is general information, not legal advice. Rules differ by state and city; check with your state's consumer protection office or a local attorney.