How to Hire a Contractor: The Complete Homeowner Guide

Hiring the wrong contractor is one of the most expensive mistakes a homeowner can make. Shoddy work, abandoned projects, and outright scams cost Americans billions of dollars every year. The good news? Most of these disasters are completely preventable if you know what to look for before you sign anything.

This guide walks you through every step — from the first phone call to the final payment.

Before you reach out to a single contractor, write down exactly what you need done. The more specific you are, the more accurate your quotes will be — and the easier it is to compare apples to apples.

Your scope of work should include:

• What needs to be done (e.g., "replace 200 sq ft of hardwood flooring in the living room")
• Materials you prefer (brand, grade, color if applicable)
• Timeline (when you need it started and finished)
• Access requirements (will the contractor need a key? Are there pets or kids to work around?)

A vague request like "fix my bathroom" will get you wildly different quotes. A specific one — "retile the shower floor, replace the vanity, and repaint" — gets you comparable bids.

Never hire the first contractor you call. Getting three quotes is the industry standard for good reason: it gives you a realistic sense of market pricing and reveals outliers on both ends.

Watch out for:

• Quotes that are dramatically lower than the others (often a sign of cut corners or hidden costs)
• Quotes with no itemized breakdown (you can't tell what you're actually paying for)
• Contractors who pressure you to decide on the spot

A legitimate pro will give you a written, itemized estimate and be happy to answer questions about it.

This is non-negotiable. Before you go any further, confirm:

Licensing: Most states require contractors to be licensed for work above a certain dollar amount. Ask for their license number and verify it on your state's contractor licensing board website. It takes two minutes and can save you thousands.

Insurance: Your contractor should carry two types:

1. General liability insurance — covers damage to your property
2. Workers' compensation — covers injuries to workers on your property

Ask for certificates of insurance and call the insurer to confirm the policies are active. If a worker gets hurt on your property and the contractor has no workers' comp, you could be liable.

Ask every contractor for three references from jobs completed in the last 12 months. Then actually call them. Most homeowners skip this step — don't be one of them.

Questions to ask references:

• Did the project finish on time and on budget?
• Were there any surprises, and how did the contractor handle them?
• Would you hire them again?
• Is there anything you wish you'd known before hiring them?

Also check online reviews on Google, Yelp, and platforms like TrustedPro USA. Look for patterns — one bad review might be a fluke, but five complaints about the same issue is a warning sign.

A solid contract protects both you and the contractor. Never start work without one. Your contract should include:

• Detailed scope of work — exactly what will be done
• Materials list — brands, grades, quantities
• Payment schedule — tied to project milestones, not arbitrary dates
• Start and completion dates
• Change order process — how additional work will be priced and approved
• Warranty information — what's covered and for how long
• Lien waiver clause — protects you if the contractor doesn't pay their suppliers

Payment red flags: Never pay more than 10–15% upfront. Legitimate contractors don't need a large deposit to get started. If someone asks for 50% or more before work begins, walk away.

Hiring a good contractor doesn't mean disappearing until the job is done. Check in regularly, ask questions, and address concerns early. Small issues are easy to fix mid-project; they become expensive disputes after the fact.

Keep a project log with photos dated throughout the work. This protects you if there's ever a dispute about what was done or when.

Before you make your final payment, do a thorough walkthrough with the contractor. Make a punch list of anything that needs to be corrected or completed. Don't release final payment until:

• All work is complete to your satisfaction
• The site is cleaned up
• You have all warranties, manuals, and permits
• You've received lien waivers from the contractor and any subcontractors

Hiring a great contractor comes down to doing your homework upfront. Verify credentials, get multiple bids, read the contract, and stay engaged. The extra hour you spend vetting a pro before the job starts can save you weeks of headaches — and thousands of dollars — after it ends.

Ready to find a vetted, license-verified pro in your area? Browse the TrustedPro USA directory to get started.

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