How to hire a contractor
To hire a contractor, get at least three written bids for the same scope of work, check each one's license with your state or local licensing board, and ask for proof of liability and workers' compensation insurance. Call recent references. Sign a written contract with the scope, timeline, payment schedule tied to finished work, and who pulls permits. Avoid large upfront deposits and cash only deals.
Why it matters: Most renovation disputes trace back to a handshake deal, a large deposit and no permit.
Steps
- Write down the job so every contractor bids on the same scope.
- Get at least three written bids.
- Look up each contractor's license with your state or local licensing board.
- Ask for certificates of liability and workers' compensation insurance.
- Call two or three recent customers and ask whether the job finished on time and on budget.
- Sign a written contract with scope, materials, timeline, permits and a payment schedule tied to completed stages.
- Keep every change in writing, and get lien waivers when you pay.
Stop and call a professional if
- a contractor asks for most of the money upfront, cash only, or to skip permits: stop and hire someone else
- work involves gas lines, wiring, structure or the roof: use a licensed trade and a permit
Questions to ask the professional
- Who pulls the permits?
- What is the payment schedule, and what finished work triggers each payment?
- Who will be on site each day?
Common mistakes
- Hiring the lowest bid without checking the license.
- Paying most of the price before work starts.
- Agreeing to skip permits to save time.
- Accepting a door to door offer after a storm.
Teach this to someone
A one page sheet for showing a friend, a teenager or a parent: what to say, what to show, and one question to check it landed.
Teach: How to hire a contractor
What to say
To hire a contractor, get at least three written bids for the same scope of work, check each one's license with your state or local licensing board, and ask for proof of liability and workers' compensation insurance. Call recent references. Sign a written contract with the scope, timeline, payment schedule tied to finished work, and who pulls permits. Avoid large upfront deposits and cash only deals.
What to show
- Write down the job so every contractor bids on the same scope.
- Get at least three written bids.
- Look up each contractor's license with your state or local licensing board.
- Ask for certificates of liability and workers' compensation insurance.
- Call two or three recent customers and ask whether the job finished on time and on budget.
- Sign a written contract with scope, materials, timeline, permits and a payment schedule tied to completed stages.
- Keep every change in writing, and get lien waivers when you pay.
Where it stops
Stop and call a professional if a contractor asks for most of the money upfront, cash only, or to skip permits: stop and hire someone else.
Check question
How many written bids should you get?
Answer: At least three. Comparing bids shows fair prices and scope gaps.
Your checklist
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Quick quiz
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Related skills
Sources
- State contractor licensing board guidance for homeowners, 2025. Reviewed September 28, 2026.
Written in our own words from the sources above. It is general information, not advice for your situation; where a professional, your doctor or your lease says something different, follow them.
Last reviewed . First published .