How to Find a Good Contractor (And Avoid Bad Ones)

Word of mouth is still the best source. Ask neighbors, coworkers, friends, and family who they've used and whether they'd hire them again. A contractor who did great work for someone you trust is a strong starting point.

Nextdoor and local Facebook groups: search for recent posts asking for contractor recommendations in your area. Pay attention to names that come up repeatedly with positive feedback.

Your local building department: they can tell you which contractors are licensed and have a clean record. Some municipalities maintain a list of licensed contractors.

Supply houses (not big box stores): the contractors who buy their materials from plumbing supply houses, electrical wholesalers, and lumber yards tend to be established professionals. Ask the counter staff who they recommend... they know which contractors do quality work and which ones are hacks.

Avoid: door-to-door solicitors ("we're doing work in the neighborhood and noticed your roof..."), Craigslist ads with no business name, and anyone who approaches you unsolicited after a storm.

Get at least 3 estimates for any project over $1,000. This isn't just about price... it's about seeing who shows up on time, who asks good questions, and who communicates clearly.

License: verify their license is active and in good standing. Every state has an online lookup tool for contractor licenses (search "[your state] contractor license lookup"). An unlicensed contractor is an automatic disqualification for any significant project.

Insurance: ask for a certificate of insurance showing both general liability ($1 million minimum) and workers' compensation. Call the insurance company to verify it's current... some contractors let their policies lapse and show you an old certificate. If an uninsured contractor gets hurt on your property or damages your home, you're liable.

References: ask for 3-5 references from recent projects similar to yours. Actually call them. Ask: Was the work done on time? On budget? Were there any problems, and how were they handled? Would you hire them again?

Online reviews: check Google, Yelp, and the BBB. Look for patterns, not individual reviews. Every contractor has a few negative reviews... what matters is how they respond and whether the same complaints keep appearing.

How long they've been in business: longevity matters. A contractor who's been operating for 10+ years under the same business name has survived the market cycles that wipe out fly-by-night operators. New doesn't mean bad, but established means proven.

"I can start tomorrow." Good contractors are booked 2-6 weeks out. If someone can start immediately, ask yourself why they have no other work.

No written estimate. A verbal quote is worthless. If they won't put numbers on paper with a scope of work, they're either disorganized or planning to change the price later.

Asking for full payment upfront. This is the biggest red flag in contracting. Once they have your money, your leverage is gone. Standard payment structure is 10-30% deposit, progress payments, and final payment on completion.

Pressuring you to decide today. "This price is only good today" is a sales tactic, not a business practice. Legitimate contractors give you time to think and don't pressure you.

No physical business address. A P.O. box or "we work out of our truck" isn't necessarily bad for a solo tradesperson, but for a general contractor managing a major project, you want someone with a real office you can visit.

Won't pull permits. If the project requires a building permit and the contractor says "we don't need one" or "permits just add cost"... they're either cutting corners or not licensed. Unpermitted work creates liability, insurance, and resale problems.

Cash-only, no contract. This screams tax evasion and gives you zero legal protection. Always pay by check or credit card with a paper trail.

A good estimate includes: - Detailed scope of work (not just "remodel bathroom" but specifics about what's being done) - Materials list with brands, quantities, and costs - Labor costs broken out separately - Timeline with start and expected completion dates - Payment schedule - Warranty information - Permit costs (if applicable)

When comparing estimates, don't just look at the bottom line. Compare the scopes. A $15,000 estimate and a $22,000 estimate might include different things... the cheaper one might exclude disposal, permits, or finish work that the more expensive one includes.

The lowest bid isn't always the best value. If three estimates come in at $18,000, $20,000, and $12,000... that $12,000 bid should make you nervous. They're either cutting corners on materials, underestimating the work (which means change orders later), or desperate for work (which can indicate problems).

Ask each contractor: "What could go wrong, and how would you handle it?" Good contractors are upfront about potential complications. Bad contractors promise everything will go perfectly. Renovation always has surprises... you want a contractor who plans for them.

Never start work without a written contract. This is your single most important protection. The contract should include:

Scope of work: specific, detailed description of everything being done. The more detail, the better. "Install new kitchen cabinets" is too vague. "Remove existing cabinets, install 14 linear feet of Kraftmaid maple shaker cabinets in Dove White finish, including all hardware (client to select from Kraftmaid catalog)" is good.

Total price and payment schedule: the total cost, when payments are due, and what triggers each payment. Never pay more than 10-30% upfront.

Timeline: start date, expected completion date, and what happens if the contractor misses the deadline. Some contracts include a penalty clause for late completion ($100-$200/day), which is reasonable for large projects.

Change order process: how changes to the scope are handled. Any change should be documented in writing with an agreed price before the work is done. Verbal change orders are the #1 source of contractor disputes.

Warranty: what's covered, for how long, and how to make a warranty claim. Standard is 1 year on workmanship. Manufacturer warranties on materials are separate.

Dispute resolution: how disagreements will be handled (mediation, arbitration, or court). Mediation is cheapest and fastest for both parties.

Permit responsibility: who pulls the permits and who pays for them (usually the contractor on both counts).

The payment schedule is your primary leverage throughout the project. Structure it to ensure you're never too far ahead of the work completed.

Small projects (under $5,000): 50% deposit, 50% on completion. Or no deposit and full payment on completion if the contractor agrees.

Medium projects ($5,000-$25,000): 10-20% deposit, progress payments tied to milestones (demolition complete, rough-in complete, etc.), 10-15% holdback until final completion and your satisfaction.

Large projects ($25,000+): 10% deposit, monthly progress payments based on percentage of work completed, 10-15% final holdback. Consider requiring lien waivers from subcontractors and suppliers with each progress payment.

The final payment holdback is critical. This is your leverage to ensure punch list items get completed. Once you make the final payment, getting a contractor to come back for small fixes becomes... challenging.

Never pay ahead of the work. If a contractor asks for $10,000 to "order materials" on a $20,000 project, offer to pay the supplier directly or accompany them to pick up materials. Legitimate contractors have accounts with suppliers and don't need your money to buy materials.

Pay by check or credit card, never cash. You need a paper trail. Credit cards offer additional dispute protection if the contractor fails to perform.

Communication: a good contractor provides regular updates and responds to calls or messages within 24 hours. If communication drops off... that's a warning sign.

Cleanliness: professional contractors clean up at the end of each work day. If your property looks like a disaster zone with materials scattered everywhere and trash piling up, the contractor's work ethic is questionable.

Subcontractors: your general contractor will likely use subs for electrical, plumbing, and other specialties. Ask who the subs are and verify they're licensed and insured too. You have every right to know who's working on your home.

Inspections: if permits were pulled, inspections happen at specific stages. Attend the inspections if possible. The inspector is working for the building department, not the contractor... they'll tell you if something isn't right.

Document everything: take photos of the work daily. Save all communications (texts, emails, notes). Keep copies of every receipt, invoice, and change order. If a dispute arises later, documentation is everything.

Trust your gut: if something feels off... the work quality looks poor, the timeline keeps slipping with vague excuses, payments are demanded ahead of schedule... address it immediately. Problems don't get better with time in construction. They get worse and more expensive.