How to Hire a Contractor: A Practical Checklist
The best way to protect a project is to hire well. Most disputes come from vague scopes, missing paperwork and payments that run ahead of the work. This checklist covers what to do before you sign.
1. Define the job first
Write down what you want built, with measurements. Use our calculators to put real numbers on it — square footage, cubic yards of concrete, number of stairs. Contractors can quote faster and more accurately when every bidder is pricing the same scope.
2. Get at least three quotes
Three quotes show you the market price and highlight anything one bidder missed. Compare line by line: materials, labour, permits, disposal, and who is responsible for cleanup. The lowest number is not automatically the best value if it leaves things out. You can request up to three quotes through our free quote form.
3. Verify licence and insurance
- Check the contractor's licence or registration with your state, provincial or local authority, where licensing applies.
- Ask for a certificate of liability insurance and, where applicable, workers' compensation coverage. Confirm it with the insurer.
- Ask who will pull permits. In most places, the person doing the work should.
4. Check references and past work
Ask for two or three recent customers with similar projects and call them. Ask whether the job finished on time and on budget, and how problems were handled.
5. Get a written contract
It should include the full scope, materials and brands, start and completion dates, total price, payment schedule, change-order process, warranty terms and cleanup responsibilities.
6. Keep payments behind progress
A modest deposit is normal; large up-front payments are a risk. Tie later payments to completed milestones, and hold back the final payment until the work passes inspection and the punch list is done.
Red flags
- Cash only, or pressure to sign today
- No written estimate or contract
- Asking you to pull the permits for their work
- A price far below the other quotes with no explanation
- No verifiable business address
Questions
How much deposit is normal?
It varies by location and project, and some jurisdictions cap deposits by law. A modest deposit tied to material ordering is common; be wary of large up-front payments.