Checklist · Free
Contractor Hiring Checklist
Work through license, insurance, contract and payment checks before you sign anything.
Readiness
Not ready to hire
- Verification score8 of 23 items confirmed
- 30 / 100
- Deal-breakers outstandingDo not sign while any of these are open
- 6
- Advisable items outstandingWorth closing, but they will not sink the job on their own
- 9
- Deposit exposure17% of the price — inside the normal range
- $3,000
Do this next
Deal-breakers — close these before you sign anything
- 1
Looked the license number up on the state board's own website
Deal-breaker
A license number on a truck, a business card or a quote proves nothing. Unlicensed work is uninsurable, frequently unpermittable, and in most states leaves you without recourse.
- Do this:
- Search your state contractor board site for the number and confirm the status reads active.
- Section:
- License, insurance and record
- 2
Certificate of liability insurance sent to you by the agent
Deal-breaker
A PDF forwarded by the contractor may be expired or already cancelled. Without active coverage, damage to your house during the work is your claim and your deductible.
- Do this:
- Ask for the agent's contact and have the certificate emailed to you directly.
- Section:
- License, insurance and record
- 3
Workers' compensation confirmed for everyone who will be on site
Deal-breaker
An uninsured worker injured on your property can pursue your homeowner's policy, and in several states the property owner becomes the statutory employer.
- Do this:
- Get the comp policy number on the certificate, and ask in writing whether any subs are used.
- Section:
- License, insurance and record
- 4
Written change-order procedure requiring your approval
Deal-breaker
Without this clause, extra work gets discovered, performed and invoiced without you ever agreeing to the price. This is the most common way a residential budget doubles.
- Do this:
- Add a clause stating no additional work proceeds without your written, priced approval.
- Section:
- Contract terms
- 5
License is held in the exact legal name on the contract
Deal-breaker
A borrowed or rented license is common and it voids the protection you thought you were buying. The name on the board record and the name you write the check to must match.
- Do this:
- Compare the licensee name on the board record against the name on the contract, letter for letter.
- Section:
- License, insurance and record
- 6
Contract says who pulls the permit and whether the fee is included
Deal-breaker
Unpermitted work can void an insurance claim, must be disclosed at sale in most states, and often has to be opened back up for inspection at your cost.
- Do this:
- Have the contract name the contractor as permit applicant and state that the fee is included.
- Section:
- Contract terms
Advisable — worth closing, in this order
- 7
Exclusions written out explicitly
Advisable
What the price does not cover is where every change order comes from. A bid with no exclusions list has exclusions you have not been told about.
- Do this:
- Ask directly what is excluded, and have the answer added to the contract.
- Section:
- The bid itself
- 8
Called two references and asked about change orders and cleanup
Advisable
A reference list is curated. The useful questions are how much the final price differed from the bid and how the contractor behaved when something went wrong.
- Do this:
- Ask each reference what the job finally cost against the bid, and whether they would hire again.
- Section:
- The bid itself
- 9
Start date and substantial completion date written in
Advisable
A job with no completion date cannot be late, which means the crew can leave for a bigger job and you have no remedy.
- Do this:
- Put both dates in the contract, along with what happens if they slip materially.
- Section:
- Contract terms
- 10
Progress payments tied to completed, inspectable milestones
Advisable
Calendar-based payments mean you can be fully paid up on a job that is half built. Milestones keep the money behind the work.
- Do this:
- Rewrite the schedule so each payment names a milestone you can go and look at.
- Section:
- Payment schedule
- 11
Checked the board's complaint and disciplinary history
Advisable
A pattern of complaints or abandonment suits is a matter of public record, and it is the single best predictor of how a job ends.
- Do this:
- Search the board's disciplinary actions and your county's civil case search for the business and the owner.
- Section:
- License, insurance and record
- 12
Labor warranty term written into the contract
Advisable
A verbal warranty is unenforceable and the callback is exactly when you will need it. Manufacturer parts coverage is not labor coverage.
- Do this:
- Get the labor warranty term and what it covers stated in the contract.
- Section:
- Contract terms
- 13
Final payment due after inspection passes and the punch list closes
Advisable
The final payment is the only leverage you have left for the last 5% of the work, which is the part most likely to be skipped.
- Do this:
- Make final payment contingent on a passed inspection and a signed-off punch list.
- Section:
- Payment schedule
- 14
Seen their recent work in person, locally
Advisable
Photographs are portable and not always theirs. Local work also means they know your inspectors and your code amendments.
- Do this:
- Ask to walk a completed job of this type within driving distance.
- Section:
- The bid itself
- 15
Lien waivers provided with each progress payment
Advisable
In most states an unpaid sub or supplier can lien your home even though you paid the general contractor in full. Waivers are the standard protection and reasonable to request.
- Do this:
- Require conditional lien waivers from subs and suppliers as a condition of each payment.
- Section:
- Payment schedule
Verify the license yourself, at the source
What this assumes
- Reflects general good practice in U.S. residential contracting.
- Licensing, contract and lien rules are set by state and vary significantly.
- Not legal advice. For large projects, have a construction attorney review the contract.
Important
Verify the license number yourself on your state board's website. A license number printed on a truck or a quote proves nothing without a lookup.
Understanding the result
Verify insurance with the carrier, not the contractor
Ask for a certificate of insurance sent directly from the agent, listing you as certificate holder. It confirms coverage is active on the day work starts. A PDF forwarded by the contractor may be expired or cancelled.
Understand mechanic's liens
In most states, an unpaid subcontractor or supplier can place a lien on your home even if you paid the general contractor in full. Lien waivers with each progress payment are the standard protection, and they are reasonable to request.
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