Hiring the right contractor is the single most important decision in any home improvement project. A good contractor delivers quality work on time and on budget; a bad one causes delays, cost overruns, and shoddy workmanship.
10 steps across 1 sections
1. Steps Guide
- Define your project scope — Before contacting contractors, clearly define what you want done, your budget range, and your timeline. The more specific you are, the more accurate the bids will be.
- Get referrals and research — Ask friends, family, neighbors, and coworkers for recommendations. Check online reviews on Google, BBB, Houzz, Angi, and Yelp. Your local NAHB chapter and state contrac...
- Verify licensing — Confirm the contractor holds a valid, current license for the type of work you need. Check with your state's licensing board online. Licensing requirements vary by state and muni...
- Verify insurance — Request a Certificate of Insurance (COI) showing general liability insurance ($1M+ recommended) and workers' compensation. Call the insurance company to confirm the policy is act...
- Get 3-5 written estimates — Detailed bids should itemize labor, materials, permits, and any allowances. If one bid is significantly lower than others (25%+), investigate why — they may be cutting c...
- Check references — Call at least 3 recent clients. Ask about quality, timeline adherence, communication, handling of problems, final cost vs. estimate, and whether they would hire the contractor ag...
- Review the contract thoroughly — A comprehensive contract should include: detailed scope of work, total cost with payment schedule, start and completion dates, change order process, warranty terms,...
- Establish a payment schedule — Never pay more than 10-15% upfront. A typical schedule: 10% deposit, 25% at start of work, 25% at midpoint, 25% at rough completion, 15% upon final completion and ins...
- Set communication expectations — Agree on how often you will receive updates (daily, weekly), who your point of contact is, how change orders will be handled, and the process for addressing concerns.
- Document everything — Keep copies of the contract, all change orders, payments (pay by check or card, never cash), inspection reports, photos of work in progress, and all communications.
Common Mistakes
- Hiring based on the lowest bid
- Not getting everything in writing
- Paying too much upfront
- Skipping the license and insurance check
- Not having a written change order process
Pro Tips
- Use your state's contractor verification website
- Include a "time is of the essence" clause
- Withhold final payment until satisfied
- Get lien waivers
- Check the BBB but don't rely on it alone