How to Vet a Contractor Before You Hire: A Practical Checklist

Most home projects go well. The ones that don't usually share a pattern: the homeowner skipped a few basic checks because the contractor seemed friendly and the price seemed fair. Vetting takes an hour or two, and it is the cheapest insurance you will ever buy. Here is a checklist you can follow for almost any trade, from plumbing to roofing.

1. Confirm the license (where one is required)

Licensing rules vary by state, trade, and sometimes by city. Electricians and plumbers are licensed almost everywhere. General contractors, roofers, HVAC technicians, and others are licensed in many places but not all. Handyman work under a certain dollar amount is often exempt.

• Search for your state's contractor licensing board and look up the license number the contractor gives you.
• Check that the name on the license matches the business name on the estimate.
• Look at the status (active, expired, suspended) and whether there are complaints or disciplinary actions on record.
• Confirm the license covers the type of work you are asking for.

If a contractor tells you a license "isn't needed" for a job that normally requires one, treat that as a warning sign. An unlicensed contractor can leave you responsible for failed inspections and unpermitted work.

2. Ask for proof of insurance

Two kinds of coverage matter. General liability insurance covers damage the contractor causes to your property. Workers' compensation covers injuries to the contractor's employees on your property. Without it, a serious injury on your job can become your problem.

Ask for a certificate of insurance and, for larger jobs, ask your contractor to have their insurer send it to you directly. The certificate should show coverage dates that include your project dates. Don't be shy about this; professionals expect the question.

3. Talk to recent customers

Reviews are helpful, but a phone call tells you more. Ask for two or three references from jobs similar to yours in the last year or two. Useful questions:

• Did the crew show up when they said they would?
• Was the final price close to the estimate? If not, why?
• How did they handle surprises or mistakes?
• Was the site kept clean and safe?
• Would you hire them again?

If you can, look at finished work in person or in detailed photos. Be wary of portfolios made up only of stock-looking images.

4. Get a written estimate

A verbal price is not an estimate. A good written estimate includes the scope of work, materials (with brand or grade where it matters), labor, who pulls permits, the timeline, and what is not included. Compare estimates line by line, not just by total.

When estimates differ a lot, ask why. Sometimes one contractor is including something the others forgot. Sometimes one is cutting corners. Our guide on why quotes differ explains how to tell the difference.

5. Understand the payment schedule

Be cautious about large upfront payments. For bigger projects, a common structure is a modest deposit, scheduled payments tied to completed milestones, and a final payment after you have inspected the work. Rules on maximum deposits vary by state, so check yours.

Pay by check, card, or another traceable method rather than cash, and keep receipts. Never pay the final installment until the work is finished, cleaned up, and any inspection has passed.

6. Make sure permits are handled

Structural, electrical, plumbing, and many HVAC and roofing projects need permits. The contractor should normally pull them in their own name. Permits protect you: they trigger inspections by a neutral third party. If a contractor suggests skipping a permit "to save you money," that saving can become expensive when you sell the house or file an insurance claim.

7. Put the agreement in writing

Before work starts, you should have a signed contract or work order that lists the scope, price, payment schedule, start and completion dates, warranty terms, and how changes will be handled. Change orders should also be in writing, with the price agreed before the extra work begins.

Red flags worth walking away from

• Pressure to decide today ("this price is only good now").
• Door-to-door solicitation after a storm, combined with a request for a big deposit.
• No physical address, no business name on the vehicle or paperwork, or a reluctance to provide a license number.
• A price far below every other estimate with no explanation.
• Refusing to put things in writing.

A quick pre-hire checklist

1. License verified with the licensing authority.
2. Insurance certificate received and current.
3. Two or three references actually called.
4. Written estimate with clear scope and exclusions.
5. Payment schedule tied to progress.
6. Permits identified and assigned.
7. Signed contract before work begins.

None of this guarantees a perfect project, but it removes most of the avoidable risks. On HireHelpers, pros can list license and insurance details on their profile, but treat that as a starting point and verify for yourself before you sign anything.