What to Look for When Hiring a General Contractor?

Hiring a contractor is one of the most important decisions you'll make as a homeowner. Whether you're planning a kitchen remodel, adding a bathroom, or tackling a major renovation, the contractor you choose can mean the difference between a dream project and a costly nightmare. So before you sign anything or hand over a deposit, here's exactly what to look for and what to watch out for.

1. Verify Licenses and Certifications

The very first thing you should check is whether a contractor holds a valid license in your state or locality. Licensing requirements vary by state, but most jurisdictions require general contractors and specialty tradespeople (electricians, plumbers, HVAC technicians) to be licensed.

Why it matters: A licensed contractor has demonstrated a baseline of knowledge and is accountable to a licensing board. Unlicensed work can void your homeowner's insurance, complicate a home sale, and leave you with no legal recourse if something goes wrong.

How to verify: Most states have an online license lookup tool through their contractor licensing board. Don't just take their word for it - look it up yourself.

2. Confirm They Carry Insurance

Never hire a contractor who can't provide proof of insurance. There are two types you should ask for:

• General liability insurance - Covers property damage or injuries that occur during the project.
• Workers' compensation insurance - Covers injuries to workers on your property. Without it, you could be held liable if a worker gets hurt on the job.

Ask for a certificate of insurance (COI) and call the insurance company directly to confirm the policy is active. Don't skip this step - it protects you from potentially devastating financial liability.

3. Check References and Past Work

A reputable contractor will have no hesitation giving you references from past clients. Ask for at least three, and actually call them. When you speak with references, ask:

• Was the project completed on time and within budget?
• How was communication throughout the project?
• Were there any unexpected issues, and how were they handled?
• Would you hire them again?

Beyond references, look at their online reviews on Google, Yelp, Houzz, or the Better Business Bureau. A pattern of complaints - especially about incomplete work, cost overruns, or poor communication - is a red flag, no matter how polished their pitch.

4. Get Multiple Bids

It's standard practice to get at least three written bids for any significant project. This isn't just about finding the cheapest price - it gives you a basis for comparison and helps you spot outliers.

Be cautious of:

• A bid that's dramatically lower than the others (a sign of cut corners, low-quality materials, or a contractor who'll tack on costs later)
• A bid with no itemized breakdown (you should know what you're paying for)
• Pressure to accept quickly or skip the bidding process

The goal is value, not just cost. A slightly higher bid from a contractor with stellar references and clear communication is often a much better investment.

5. Understand the Contract - Every Line

Before any work begins, you should have a detailed written contract. Never rely on a handshake deal or a vague agreement. A solid contract should include:

• Scope of work - A specific description of what will (and won't) be done
• Materials - Brand names, models, grades, and quantities
• Timeline - Start date, milestones, and projected completion date
• Payment schedule - Tied to project milestones, not arbitrary dates
• Change order process - How any changes to scope or cost will be documented and approved
• Warranty information - On both labor and materials
• Dispute resolution - How disagreements will be handled

If a contractor is reluctant to put things in writing, walk away.

6. Understand the Payment Schedule

A fair payment schedule protects both you and the contractor. Be wary of anyone who demands a large upfront payment before work begins. Industry standard is typically:

• 10–15% deposit at contract signing
• Progress payments tied to completed milestones
• Final payment only after the project is complete and you're satisfied

Never pay in full upfront. Withholding the final payment until work is fully completed is your most powerful leverage point.

7. Check Their Experience with Your Type of Project

A contractor who specializes in additions may not be the best fit for a historic restoration. Ask specifically about their experience with projects similar to yours:

• How many projects like mine have you completed?
• Can I see photos or visit a completed project?
• Do you use subcontractors for any part of the work, and if so, who?

If they use subcontractors, those subs should also be licensed and insured - your main contractor is responsible for making sure of this.

8. Evaluate Communication Style Early

How a contractor communicates before you hire them is a preview of how they'll communicate during the project. Ask yourself:

• Do they return calls and emails promptly?
• Do they listen to your ideas and concerns?
• Are they transparent about potential challenges?
• Do they explain things clearly without being condescending?

Poor communication is one of the top complaints homeowners have about contractors. The best technical skills won't compensate for a contractor who disappears when problems arise.

9. Pull the Necessary Permits

Any reputable contractor will pull the required building permits for your project. Permits ensure the work is inspected and meets local building codes. Some homeowners try to skip permits to save time or money - this is a serious mistake.

Unpermitted work can:

• Result in fines and required demolition
• Create problems when selling your home
• Void your homeowner's insurance for related claims

If a contractor suggests skipping permits "to keep costs down," consider that a major red flag.

10. Trust Your Gut

After you've done your due diligence - verified licenses, checked insurance, read reviews, compared bids, and reviewed the contract - trust your instincts. If something feels off about a contractor, even if everything looks fine on paper, it's okay to keep looking. You're inviting this person into your home and entrusting them with a major investment. Comfort and trust matter.

Quick-Reference Checklist

Before signing a contract, make sure you can check off each of the following:

• License verified through state licensing board
• Proof of liability and workers' comp insurance received and confirmed
• At least 3 references checked by phone
• At least 3 written, itemized bids compared
• Detailed written contract reviewed (scope, materials, timeline, payment, warranties)
• Payment schedule tied to milestones - no large upfront payment
• Contractor has specific experience with your project type
• Building permits will be pulled by the contractor
• Communication has been prompt, clear, and professional

The Bottom Line

Hiring the right contractor requires patience, research, and a willingness to ask hard questions. The extra time you spend vetting candidates upfront will almost always save you time, money, and stress in the long run. Don't let excitement about a project - or pressure from a contractor - rush you into a decision you haven't fully thought through.

The right contractor is out there. And now you know exactly how to find them.