Free Checklist

The Contractor Vetting Checklist: 10 Checks Before You Sign Anything

The license, insurance, reference and contract checks that separate a great hire from a horror story. Run any contractor through this list in about an hour — all of it free.

Sound familiar?
✕The contractor seemed great — until the deposit cleared and the schedule slipped.
✕"Licensed and insured" was in the ad, but nobody ever saw the paperwork.
✕The final bill came in thousands over the number you shook hands on.
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The 10-Point Contractor Vetting Checklist
1

Look up the license yourself

Get the license number and check it on your state contractor board's website — active status, matching business name, right classification for your project, no discipline history. Never take "licensed" on faith; the lookup is free and takes two minutes.

2

Get the insurance certificate sent to you

Ask for a certificate of insurance — general liability AND workers' comp — emailed directly from their insurance agent. If an uninsured worker is hurt on your property, the claim can become your problem.

3

Call two references and ask what went wrong

"Was he great?" gets you nothing. Ask: what went wrong and how did he handle it? Did the final price match the contract? Would you hire him again for something bigger? Listen for the pause.

4

Search the record

Business name plus "complaint," "lawsuit," and "lien." Check reviews on at least two sites and read the three-star ones — that's where the honest detail lives. One bad review means nothing; a pattern means everything.

5

Confirm who actually does the work

Is it their crew or subcontractors? Subs are normal — but ask how long they've worked together and who supervises daily. You're hiring the person on your site, not the person at your kitchen table.

6

Demand a written, itemized bid

Scope, exclusions, allowances, timeline, payment schedule — in writing. A single number on a text message is not a bid, it's a guess you'll argue about later. Vague at bid time never improves after signing.

7

Check the deposit against your state's limit

Many states cap home improvement deposits at 10% or a fixed amount. Search "[your state] contractor deposit limit." A demand for half up front is a red flag with its own chapter in every horror story.

8

Make sure the contractor pulls the permits

A contractor who asks you to pull your own permit is often avoiding inspector scrutiny of their work — or isn't licensed to pull it. Permits protect you at resale, in insurance claims, and in disputes.

9

Tie every payment to finished work

Milestone payments you can verify with your own eyes — never dates on a calendar. Hold roughly 10% until the punch list is done and a lien waiver is signed. Money is your only leverage; spend it slowly.

10

Get the change order rule in writing

Every change — theirs or yours — gets written up with a price and signed before the work happens. This single sentence in your contract prevents the most common way budgets die: verbal "small extras."

Want the documents that back up this checklist?

The Homeowner Protection Kit gives you the 12 contract must-haves, change order defense templates, the red flag cheat sheet, and three real project budgets — the paper trail that makes every check on this list enforceable.

Get the Protection Kit — $37
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