Hiring the wrong contractor is one of the most expensive mistakes a homeowner can make. After hearing too many horror stories on this forum and in my own neighborhood, I put together a checklist that I use every single time before signing a contract.
Before You Even Call Them:
- Check their license status on your state or province’s licensing board website
- Look them up on the Better Business Bureau — not just the rating, but the actual complaints
- Search their company name + “reviews” and read past the first page of Google results
- Ask neighbors, friends, or local Facebook groups for honest recommendations
During the First Conversation:
- Ask for proof of liability insurance AND workers’ compensation coverage
- Ask for at least 3 references from jobs completed in the last 12 months — and actually call them
- Ask about their timeline honestly. If they say they can start “next week” and they’re good, that might be a red flag — good contractors are usually booked out
- Get everything in writing: scope of work, materials, payment schedule, start date, and estimated completion
Red Flags to Walk Away From:
- They want more than 10-15% deposit upfront
- They refuse to put the agreement in writing
- They pressure you to “decide today” because of a “limited time deal”
- They can’t or won’t provide a physical business address
- Their online reviews look suspiciously perfect or were all posted within a short period
Payment Best Practices:
- Never pay in full upfront. A typical payment schedule might be 10% deposit, 30% at rough-in, 30% at substantial completion, and 30% on final walkthrough
- Pay by check or credit card — never cash with no receipt
- Hold back a reasonable amount until every punch list item is done
Feel free to save this or share it with anyone you know who’s about to hire a contractor. And if you’ve got your own tips to add, drop them below — the more knowledge we share, the fewer people get burned.