How to Choose a Contractor: Questions to Ask Before You Hire

The difference between a good contractor and a bad one rarely shows up in the first meeting — it shows up three weeks into the project, when the schedule slips or a change order shows up with no explanation. The best time to catch a bad fit is before you sign anything, using questions that are hard to fake a good answer to.

Verify licensing and insurance yourself — don't take their word for it

Every state and most municipalities require a license for general contracting work above a certain dollar threshold, and separate licenses for electrical and plumbing trades. Ask for the contractor's license number and look it up yourself on your state's licensing board website — this takes about two minutes and tells you whether the license is active, whether it's actually in the business name they're quoting you under, and whether there are any disciplinary actions on file.

Then ask for a certificate of insurance (COI) showing general liability coverage, and ideally workers' compensation if they have employees. A legitimate contractor can email you a COI directly from their insurance broker within a day. Reluctance or delay here is one of the clearest red flags in the entire vetting process — it usually means the coverage lapsed, is minimal, or doesn't exist.

Questions worth asking every bidder

• "What's your typical timeline for a project like mine, and what would make it run longer?" A contractor who gives an honest range and names specific risk factors (permit delays, material lead times) is more trustworthy than one who promises an unrealistically fast, no-caveat timeline just to win the bid.
• "Can I get three references from projects finished in the last year?" Call them. Ask specifically whether the final price matched the quote, and whether the contractor was easy to reach once the project was underway — that second question surfaces more real information than "were you happy with the work."
• "Who's actually doing the plumbing and electrical — your crew or a sub?" Either answer can be fine, but you want to know, and you want the sub to carry their own license and insurance, not just work under the general contractor's.
• "What's your payment schedule?" A schedule tied to project milestones (deposit, rough-in complete, drywall complete, final) is standard. A demand for most or all of the payment upfront is not.
• "What happens if we find something unexpected once demo starts?" You want to hear a process — how they'll document it, price it, and get your sign-off — not a vague "we'll figure it out."

Red flags in how a contractor answers

Watch the way a contractor responds as much as what they say. A contractor who can't clearly explain what's included in their number versus what would be a change order hasn't scoped the job carefully enough to price it accurately. One who pressures you to sign the same day, or offers a discount specifically for signing immediately, is using a sales tactic that has nothing to do with the quality of their work. And a quote that arrives without any breakdown — just one number for "kitchen remodel" — makes it impossible to compare against other bids or know where your money is actually going.

Get it all in writing

Once you've picked a contractor, the scope of work, materials, timeline, and payment schedule should all be in a signed written contract before any work or deposit changes hands. Verbal agreements about "we'll throw that in" have no value once a dispute starts — if it's not in the contract, don't assume it's included.