How to Find and Vet Contractors

What it is

Choosing the right contractor is often the difference between a project that adds value and one that becomes a costly headache. Vetting a contractor means confirming they're licensed, insured, and reputable before you sign — and structuring the deal so you're protected if things go wrong. This is standard consumer-protection guidance that applies to almost any home project.

The checklist

Before you hire

• Get multiple written bids — at least three. Comparing bids reveals the fair market price and exposes outliers that are suspiciously high or low.
• Verify the license. Confirm the contractor holds the license your state or locality requires for the work, and that it's current.
• Confirm insurance. Ask for proof of liability insurance and workers' compensation. Without it, you can be exposed if someone is injured or property is damaged.
• Check references and past work. Ask for recent clients and, where possible, see completed jobs. Look up reviews and any complaint history.
• Confirm they'll pull permits where required — and that permits are in the contractor's name, not yours.

The contract

• Get everything in writing: full scope, materials, timeline, total price, and payment schedule.
• Define change orders (written changes to the agreed scope or price). Any change to scope or price should be written and signed before work proceeds — this is your main defense against scope creep.
• Include a lien waiver (a signed document preventing unpaid subcontractors from making a claim against your home) so you're protected against claims from unpaid subcontractors or suppliers.

Red flags to avoid

• Large upfront payments. Be wary of anyone demanding a big share of the total before work begins. Tie payments to milestones, with a meaningful amount held until the job is complete and inspected.
• Cash-only or "no permit needed" pitches. Both often signal an unlicensed or uninsured operator.
• Pressure to decide now or "today-only" pricing.
• No written contract or vague, verbal-only terms.
• No verifiable license, insurance, or references.

How to think about it

• Cheapest isn't safest. A lowball bid can mean cut corners, missing insurance, or a change-order ambush later.
• Structure payments to keep leverage. Milestone-based payments keep the contractor motivated to finish well.
• Keep records. Save bids, the contract, permits, receipts, and lien waivers — they matter for warranty claims, disputes, and resale. Trusted vendors you've vetted can be saved to your vendor list for next time.