How to Hire a Contractor: 7 Steps to Protect Yourself and Your Home

Step 1: Define Your Project Clearly

Before contacting any contractors, write down exactly what you want done. The more specific you are, the more accurate your bids will be and the easier it is to compare them. Include materials you want used, the scope of work, and your desired timeline.

Step 2: Get at Least Three Bids

Never hire the first contractor you talk to. Get written bids from at least three qualified contractors. This gives you a sense of market pricing and allows you to evaluate professionalism and communication, not just cost.

Step 3: Verify Licensing and Insurance

Ask every contractor for their license number and verify it is current with your state licensing board. Confirm they carry general liability insurance and workers compensation. A contractor who cannot or will not provide these documents should be disqualified immediately.

Step 4: Check References and Reviews

Ask for references from recent jobs similar to yours and actually call them. Ask: Was the work completed on time and on budget? Would you hire them again? Also check Google, Yelp, and the Better Business Bureau for patterns in reviews.

Step 5: Review the Contract Carefully

Never start work without a written contract. It should include a detailed scope of work, materials specifications, start and completion dates, payment schedule, and change order procedures. Be wary of contractors who want large upfront payments.

Step 6: Understand the Payment Schedule

Tie payments to project milestones, not to dates. Pay only for completed, inspected work. Hold back 10–15% until the job is fully complete and you are satisfied.

Step 7: Get All Required Permits

Major renovation work typically requires permits. The contractor should pull permits — not you. Permitted work is inspected by the city, giving you an extra layer of quality assurance.