Questions to Ask Before Hiring a Contractor

You’re about to let someone you barely know into your home with a crew of people you haven’t met, a pile of your money, and the keys to your biggest asset. Most homeowners spend more time reading Amazon reviews for a $200 kitchen gadget than they do preparing questions for the person who’s going to handle their $60,000 renovation.

That’s not a knock on you. The process is intimidating. Contractors are the experts, and it’s natural to assume they know what they’re doing. But here’s the thing: the questions you ask before you hire a contractor are the single best tool you have to separate a pro from a problem.

This guide covers exactly what to ask — each question explained in plain English, why it matters, and what to do with the answer.

License, Insurance & Bonding

These first questions are non-negotiable. If a contractor can’t answer them clearly, the conversation stops here.

Are you licensed to work in this state?

Ask for the contractor’s full legal name and license number. Look it up on your state’s licensing board website. Confirm the license is active, not expired, and not under disciplinary action. Make sure the business name on the license matches who you’re talking to. If you want a deeper walk-through, use the contractor license and bond guide before the interview.

Some states have statewide licensing for general contractors. Others only license individual trades. And some leave it entirely to local cities and counties. Know which system applies to you and verify accordingly. If permit responsibility is part of the job, read the contractor permit rules before you sign.

A contractor who says “I don’t have the number handy” or “just trust me, I’m legit” is telling you everything you need to know. Move on.

Can you send a Certificate of Insurance?

A Certificate of Insurance (COI) is a document issued by the contractor’s insurance company that proves they carry the required coverage. Ask for one. Not a photocopy the contractor made. Not a screenshot of an email. An actual COI from the insurer that you can call to verify. The related insurance waiver guide explains what paperwork protects you before crews start.

Look for three things on the COI:

General liability insurance. This covers property damage and bodily injury. A minimum of $1 million per occurrence and $2 million aggregate is standard. Confirm the policy dates cover your entire project timeline.

Workers’ compensation insurance. This covers injuries to employees on the job. If a worker gets hurt in your home and the contractor has no workers’ comp, you could be held liable for medical bills. The only exception is a sole proprietor with no employees — in that case, ask for proof of health insurance instead.

Additional insured endorsement. Ask to be named as an “additional insured” on the policy. This means the insurance company treats you as a named party under the policy for claims arising from the contractor’s work. Any decent contractor will do this without pushback.

Are you bonded?

A bond is a separate financial guarantee. If a contractor fails to complete the job, doesn’t pay their subcontractors, or violates the building code, you can make a claim against the bond to recover your losses. Not all states require contractors to be bonded, but if a contractor is, it’s a strong sign they’re legitimate.

Ask for the bond number and the bonding company’s name. Verify it’s active and sufficient for the size of your project.

Vetting Experience & Track Record

Once the legal basics check out, it’s time to dig into whether this contractor can actually do the work you need done.

How many projects like mine have you completed?

A contractor who specializes in kitchen remodels may not be the right fit for a foundation repair. Look for someone who has done work comparable to yours in size, scope, and complexity. Ask for specific numbers — “I’ve done about 30 bathroom remodels in the last three years” is a real answer. “I can handle anything” is not.

If you are not sure whether the job needs design help before contractor interviews, decide whether to hire a designer, architect, or GC first. It will make the scope questions cleaner.

Can I call your recent references?

Ask for at least three references from projects completed in the last year that are similar to yours. Then call them. Most homeowners skip this step — don’t be most homeowners.

When you call, ask:

• Was the project completed on time and on budget?
• How did the contractor handle unexpected issues or changes?
• Did they keep the work site clean and organized?
• How was communication throughout — did they call back? Did they keep you informed?
• Did subcontractors show up on time and treat the property with respect?
• Would you hire them again without hesitation?

If a reference hesitates or gives vague answers, that’s information.

Can you show me a job in progress?

A finished project photo only tells you about the end result. A job in progress tells you about the process. If the contractor has a project nearby that’s mid-construction, ask if you can walk through it. Pay attention to how the site is managed — is it clean? Organized? Are materials protected from weather? Do the subcontractors look professional?

The conditions on an active job site tell you more about a contractor than a dozen five-star reviews.

Who will be on site every day?

Some contractors show up for the bid and then you never see them again. Ask who will be running the day-to-day work. Is it the owner? A project manager? A lead carpenter? Ask to meet that person before you sign.

Also ask how many other projects the contractor is running at the same time. If your project is one of ten, your share of attention might not be what you’re paying for.

The Contract

A handshake isn’t a contract. A text message isn’t a contract. A bid on a napkin isn’t a contract. Get everything in writing.

Will the contract include a detailed scope of work?

The scope of work is the heart of your contract. It describes exactly what the contractor will do — and equally important, what they won’t do.

A good scope is specific. “Remodel bathroom” tells you nothing. “Demo and remove existing tub, toilet, vanity, and tile; install new tub, tile surround, vanity, toilet, and fixtures per attached material schedule” — that tells you something.

The scope should include brand names, model numbers, colors, dimensions, and product grades for everything. And it should include a clear list of exclusions — the things the contractor is not providing. Most disputes come from assumptions about what’s included. Build that list from a room-by-room scope and compare it against your remodeling contract checklist.

How do you handle change orders?

Every renovation has surprises. When the wall opens up and reveals rot, or when you decide you want a different tile, the price changes. That’s normal. What matters is how that process works.

Ask for a written change order process. Each change should be documented in writing with the cost and schedule impact before work begins. Some contractors handle change orders well. Others treat them as a profit center, lowballing the original bid and making it up on changes.

A contractor who can describe their change order process clearly and confidently is usually someone who’s done this before and wants both sides protected.

What’s the payment schedule?

The golden rule: never pay the full amount upfront. A deposit of 10–30% is normal depending on the size of the project and whether the contractor needs to order custom materials. Everything beyond that should be tied to completed milestones — “25% when framing is complete and inspected,” not “25% by the end of month two.”

If a contractor asks for 50% or more before any work starts, that’s a red flag. Legitimate contractors have credit lines with suppliers. They don’t need your money to buy lumber.

Also ask how long it takes to get paid after a milestone is complete. A reputable contractor might invoice weekly or at each milestone with net-30 terms. A red flag contractor demands payment on the day the invoice is issued, before the next day’s work starts. Use a payment schedule and draw request checklist to keep the money conversation tied to completed work.

What’s the timeline?

Every contract should include a start date, an estimated completion date, and a schedule of major milestones. The timeline should account for material lead times, holidays, and weather. It should also explain what happens when the contractor runs late — is there a penalty? Is it just “time and materials as needed”?

Most contractors won’t guarantee an exact completion date with penalty clauses unless you’re building a commercial project. But they should give you a realistic estimate and a process for communicating schedule changes.

Permits & Inspections

This section deserves its own set of questions because it’s where misinformed homeowners get into the most trouble.

Will you pull the permits?

This is the single biggest red flag according to homeowners on Reddit and across every contractor review site: a contractor who asks you to pull the permits yourself.

Pulling permits is the contractor’s job. They’re the licensed professional. They know the building department. They know what the inspector is looking for. A contractor who asks you to handle permits is trying to avoid liability, skip inspections, or hide the fact that they’re not licensed.

The correct answer is: “Yes, we include permit fees in our bid and handle the entire permitting process.”

If a contractor says “You don’t need permits for this” or “Permits are just a money grab by the city,” do not hire them. Permits exist to make sure the work is safe. Skipping them can cause problems when you sell your house, and it can leave you with work that has to be torn out and redone.

Which inspections are required?

Ask the contractor to list every inspection the project will require — foundation, framing, rough-in electrical and plumbing, insulation, final. A good contractor should be able to rattle these off without checking notes. If they can’t, they may not be accustomed to pulling permits at all.

Ask who will be present for each inspection. The person who did the work should be there, not just the project manager.

What happens if an inspection fails?

This happens. An inspector finds a problem, and the work needs to be corrected. Ask how the contractor handles failed inspections — who pays for the rework, and what’s the timeline to get back on track. A good contractor will correct the issue at their own cost. A bad one will try to bill you for it.

Lien Waivers

Most homeowners have never heard of lien waivers. That’s exactly why this question matters.

Will you provide lien waivers with each payment?

A mechanics lien is a legal claim a contractor, subcontractor, or supplier can file against your property if they aren’t paid. Even if you’ve paid your general contractor in full, a subcontractor or supplier who wasn’t paid can put a lien on your house. You could end up paying for the same work twice. Read the mechanics lien guide if lien waivers are new to you.

A lien waiver is a document that prevents that. When you make a payment, the contractor — and ideally their subcontractors and suppliers — sign a waiver saying they’ve been paid and waive their right to file a lien for that period.

Ask about lien waivers before you sign the contract, not when you’re writing the final check. The process should be part of your payment schedule:

• Conditional waiver at payment request: The contractor agrees they’ll waive lien rights once the check clears.
• Unconditional waiver after payment: The contractor confirms they’ve been paid and permanently waives lien rights.

Ask for lien waivers from the top-tier subcontractors and material suppliers too. A general contractor’s waiver protects you from the GC but not from the electrician who hasn’t been paid.

If a contractor doesn’t know what a lien waiver is, or says “don’t worry about that,” that’s a major red flag. They may not be in the habit of paying their subs, which leaves you exposed.

Red Flags

Beyond the individual questions, watch for these patterns. One red flag might be explainable. Two or more means it’s time to walk. Keep the broader general contractor red flags list open while you review estimates.

The lowball bid

A bid that’s 30–40% lower than everyone else isn’t a bargain. It’s a trap. The contractor either missed something in the scope, plans to hit you with change orders, uses cheaper materials than specified, or needs the cash flow. Any of those leads to a bad project. Use the low contractor bid guide to decide whether the gap is explainable or dangerous.

Ask the low bidder to walk through their numbers. If they can’t explain how they arrived at their price compared to the other bids, the gap will come back as extras.

Pressure to sign today

“Sign today and I’ll take 10% off” or “I have another client interested in this slot” — legitimate contractors don’t use high-pressure sales tactics. They’re busy enough that they don’t need to. If someone is pushing you to decide immediately, ask yourself why. The answer is usually that they know you’ll find something better if you take time to think.

Contractor can start immediately

Good contractors are busy. If a contractor can start next week on a project that should take two months to schedule, that’s a yellow flag. It might mean they just finished another job early, but it often means they don’t have steady work. Ask why their schedule is open.

Asking for the homeowner to pull permits

This was already covered above, but it’s worth repeating: this is the most-cited red flag on Reddit and across homeowner forums. Don’t do it. Ever. If that answer sounds fuzzy, read who should pull the permit before you choose the contractor.

Ghosting after the quote

If a contractor disappears for a week after giving you a bid, imagine how hard they’ll be to reach when there’s a problem during construction. Responsiveness during the bidding process is a preview of responsiveness on the job.

No lien waiver before final payment

If a contractor hands you a bill for the final payment and can’t produce lien waivers from their subcontractors, do not pay until you have them. This is your only protection against paying for work twice. Pair that with a final walkthrough and punch list before releasing the last payment.

Large upfront demands

Anything above 30% down before work starts needs a good explanation. More than 50% is an immediate red flag. Legitimate contractors have working capital.

How to Compare Multiple Bids

Getting three bids is the standard recommendation, but comparing them is harder than it sounds. Here’s how to do it without getting confused. The companion guide on comparing contractor quotes with different scopes goes deeper on line-item differences.

Normalize the scope

The most common mistake homeowners make is comparing prices without comparing scope. One contractor might include premium tile and hardwood flooring. Another might assume basic-grade materials. Put all three bids side by side and adjust for differences in materials, finishes, and exclusions.

If Contractor A bids $50,000 and Contractor B bids $65,000, ask yourself: what does the extra $15,000 get you? Better materials? More oversight? A longer warranty? Sometimes the higher bid is the better value.

Compare communication, not just price

How did each contractor treat you during the bidding process? Did they show up on time? Did they answer your questions clearly? Did they provide a detailed written bid without being asked? The contractor who communicates best during bidding will be the contractor who communicates best during construction.

Check references for the final two

Once you’ve narrowed it down to two contractors, call their references. Don’t skip this step. A 30-minute phone call with a past client can reveal more than any number in a bid.

Trust your gut on chemistry

You’re going to spend weeks or months with this person in and out of your home. You need to be able to have honest conversations with them. If you feel intimidated, dismissed, or rushed during the bidding process, those feelings won’t get better once construction starts.

Quick Answers

Q: How many bids should I get before hiring a contractor?

Three is the standard. It gives you a sense of the price range and lets you compare scopes side by side. More than five is usually overkill and wastes everyone’s time.

Q: Is a verbal agreement with a contractor ever okay?

No. Never. Verbal agreements are a disaster waiting to happen. Memories differ, details get fuzzy, and you have zero legal protection. Get everything in writing, even for small projects.

Q: Can I negotiate the contract terms?

Yes. Everything is negotiable — the price, the payment schedule, the timeline, the scope. If a contractor refuses to negotiate anything, that’s a red flag. A good working relationship starts with finding terms that work for both sides.

Q: Should I pay for materials upfront?

Custom materials that need to be ordered specially — yes. A deposit of 10–30% for materials is normal. Off-the-shelf materials that the contractor buys regularly? No. A legitimate contractor has credit accounts with suppliers and doesn’t need your cash to buy lumber.

Q: What if the contractor is a friend or family member?

The same rules apply. Don’t skip the license check. Don’t skip the insurance verification. Don’t skip the written contract. A real friend will understand that a written agreement protects both of you. The friendship won’t survive a misunderstanding over what was “supposed to be included.”

Q: What happens if I fire the contractor mid-project?

Review your contract’s termination clause. Most contracts allow either party to terminate with written notice, but the terms vary. The contractor is typically entitled to payment for work completed to date plus a reasonable profit margin. You’ll need a detailed accounting of what’s been done and what’s left. Lien waivers become critical here — don’t make a final settlement without them.

Q: How do I verify a contractor’s license?

Go to your state’s contractor licensing board website. Most have an online lookup tool where you can search by name or license number. Confirm the license is active, not expired, and not under any disciplinary actions or complaints. Also check that the business name on the license matches the contractor you’re dealing with.

Q: What should I do if a contractor refuses to answer these questions?

Thank them for their time and move on. A contractor who won’t answer these basic questions isn’t a professional — they’re someone who’s used to working without oversight. There are plenty of great contractors who will answer every question on this list without hesitation. Hire one of them.

The bottom line

The questions you ask before hiring a contractor aren’t about being difficult. They’re about making sure you and the contractor are on the same page before work starts, money changes hands, and walls open up.

A good contractor will welcome these questions. They’ve heard them before. They have good answers. They understand that a well-informed homeowner makes for an easier project. If a contractor gets defensive or dismissive when you ask about license, insurance, permits, or lien waivers, that tells you everything you need to know.

Three bids. Written contract. Verified license and insurance. Lien waivers with every payment. Permits pulled by the contractor. Trust your gut, but verify everything you can. That’s how you find a contractor you can work with — not just one you survive.