How to Hire a Contractor: 12 Questions to Ask Before Signing

Start with the right mindset

Most contractors want to do good work, but the homeowner carries much of the risk if a project goes wrong. The FTC's home improvement guidance recommends getting several estimates, checking references, confirming licensing and insurance, and getting everything in writing. Florida's contractor fraud guidance similarly urges homeowners to verify licenses and be wary of large upfront deposits. Taking an extra week to check is almost always cheaper than fixing a bad hire.

The 12 questions to ask

1. Are you licensed for this work here? Licensing depends on the state, county or city and the type of work. Get the license number and check it yourself with the issuing authority.
2. Can I see proof of current insurance? Ask for liability coverage and, where applicable, workers' compensation. Confirm the policy is current; some homeowners ask the insurer directly.
3. Can you give me recent local references? Ask for people whose projects resemble yours and call them. Ask what went well and what they would change.
4. What exactly is included in the scope? The scope should list materials, quantities, brands and what is excluded. Vague bids are hard to compare and hard to enforce.
5. Who pulls the permits? The FTC cautions homeowners to be wary of contractors who ask them to get permits. Know who is responsible and that inspections are scheduled.
6. Will you use subcontractors? Find out who will be on site, who supervises them and how they are paid.
7. What is the schedule? Ask for a start date, an estimated completion date and what could cause delays.
8. How are payments structured? Tie payments to completed milestones rather than paying most of the price before work begins.
9. How are change orders handled? Changes should be priced and approved in writing before work on them starts.
10. What warranties apply? Separate manufacturer warranties on materials from the contractor's workmanship warranty, and get terms in writing.
11. Will you provide lien releases? Where applicable in your state, ask for documentation that subcontractors and suppliers were paid.
12. How do we resolve problems? Ask how complaints, punch lists and disputes are handled, and how to reach the person responsible.

Licensing depends on where you live

There is no single national contractor license. Some states license general contractors and specialty trades statewide, while others leave it to counties or cities, and requirements differ by type of work. Search your state or local licensing authority's website, look up the contractor's number, and check that the name and business match the bid. If you are in Florida, the Department of Financial Services' guidance links to state resources for checking contractors.

How to compare estimates

Line up bids by scope, not by total. If one bid includes permits, disposal and a specific material grade and another does not mention them, the totals are not comparable. Ask each contractor to fill gaps in writing. A much lower bid is not automatically a bargain; it may assume a smaller scope, cheaper materials or later change orders. Our cost guides for bathroom and kitchen remodels show what an itemized scope can look like.

Red flags to take seriously

• Door-to-door offers, especially after storms, with "leftover materials" or limited-time pricing.
• Pressure to sign immediately or to skip a written contract.
• Requests for cash only, or large payments before any work.
• Asking you to pull the permits yourself.
• No verifiable license, address or insurance.
• Unwillingness to put promises, warranties or schedules in writing.

These red flags draw on the FTC's list of warning signs. After severe weather, also see our guide to what to do after a storm roof leak.

Before you sign

Read the full contract. Make sure the scope, materials, price, payment schedule, start and completion dates, permit responsibility, change-order process, warranty terms and cancellation rights are included. Ask about any consumer cancellation rights that apply in your state. Keep copies of everything, including photos of the work at each stage.

Comparing ways to find a contractor? See our guides on Thumbtack and Angi, or browse all homeowner guides.

For project-specific budgeting, see our guides to roof replacement cost and window replacement cost, and compare home improvement financing options before you sign.

Where Nestlift fits

Nestlift is a new home-improvement marketplace. You can describe your project for free with no obligation to hire, and we aim to connect you with one local professional at a time. Availability varies by location and project category, and a match is not guaranteed. Whoever you end up talking to, these 12 questions still apply. Read how Nestlift works.

A hiring checklist that applies to any platform

Whichever service you use, the company you hire is the one doing the work. Before you sign, check:

• Credentials, and any state or local licensing required for your project type.
• Proof of current liability insurance, and workers' compensation where applicable.
• Recent reviews from several sources, not just one profile.
• A written scope that lists materials, permits, cleanup and exclusions.
• Itemized written estimates you can compare side by side.
• Payment milestones tied to completed work rather than large upfront sums.
• Contract terms covering change orders, timelines, warranties and cancellation.