Hiring a contractor

Before you call anyone

Write the job down before anyone prices it: what you want done, about how big it is, and anything you'll choose yourself, like a faucet, a tile or a paint color. Give the same list to every contractor, so every bid covers the same work. Each job page lists what a fair bid should include and what's usually extra; start from that.

Know the size. Measure the room, count the fixtures, note the length of the fence. A bid priced on a different size can't be compared with the others.

If Pricewright prices your job, look up the fair range for your zip before the first visit. It tells you roughly where honest bids land, with the contractor's overhead and margin included.

Get three written bids for the same job

Get written estimates from at least three contractors for the same work. One bid gives you nothing to measure it against. A written estimate should describe the work, the materials, when it will be finished and the price.^1,2,3

• Ask for each bid itemized: materials, labor, permit, haul-away, and anything optional on a line of its own.
• Check that each bid names the materials (product line, grade or model) and how much of the job it covers.
• Ask how long the price holds, when work can start and how long it will take.
• Ask what happens if they find hidden damage once the job is open, and how a price change would be approved.

Don't take the lowest bid just because it's lowest. Compare scope before price: a low bid often leaves something out, like removal, a permit or a part the others include. A bid far above the rest may cover work you didn't ask for. Put bids side by side with Compare bids, or check one against the fair range with Check a quote.³

Check references from recent jobs like yours, and search the company's name online along with words like "complaint" and "review". Ask the references whether the crew showed up when they said, whether the price changed, and whether they'd hire them again.^3,2

Check the license, insurance and bond

Check the contractor's license with your state, and your county or city if it licenses contractors. The rules vary a lot. Illinois has no state license for general contractors but licenses roofers and plumbers. Pennsylvania doesn't license most contractors but makes most home improvement contractors register with its Attorney General. New York doesn't license them at the state level, though some cities and counties do. Connecticut requires every home improvement contractor to register.^3,4,5,6,7,8

A license number on a bid doesn't prove the license is valid; look it up. In California, the Contractors State License Board's online lookup shows a license's status, its bond and workers' compensation coverage, and pending and past legal actions. California requires a licensed contractor for any job of $1,000 or more in labor and materials, and for any job, whatever the price, that needs a permit or uses workers. The limit was $500 until January 1, 2025.^9,10,11,12

Ask for a certificate of insurance and call the insurance agency named on it to confirm the coverage is current. General liability insurance pays for damage to your home. Workers' compensation covers a worker hurt on your property; in California a contractor with employees must carry it, and without it you could be on the hook for the injury.^9,8

Some states also require a license bond. California's is $25,000, which can be too little to cover a large job or several claims, so it's no substitute for paying in step with the work.^13,9

If your home was built before 1978 and the work will disturb paint, federal rules require a Lead-Safe Certified firm, and the contractor must give you the EPA's Renovate Right pamphlet before work starts. Very small paint jobs are exempt, but replacing windows never counts as small. You can search the EPA's list of certified firms.^14,15,16

Get it in writing

Get a written contract even where your state doesn't require one, and don't let work start until you've read and signed it. California requires one for home improvement work over $500. The contract should include:^3,1,17

• the contractor's name, address, phone number and license number
• the work to be done and the materials, and the price
• when work will start and when it should be finished
• any promises the contractor made out loud
• who pulls the permits, and whether permit fees are in the price
• your right to cancel, if you signed at home^3,17

Also get the payment schedule, the warranty on the work, how changes will be approved and priced, and cleanup in writing. Once you've signed, any change goes in writing as a change order, with its price, before the extra work is done.

Never sign a contract with blanks in it, or anything you haven't read. Keep a copy.^18,3

You may be able to cancel. Under the FTC's Cooling-Off Rule, a sale of $25 or more made at your home can be canceled until midnight of the third business day (Saturday counts; Sunday and federal holidays don't). The seller must tell you about that right and give you two copies of a cancellation form. The rule doesn't cover repairs you invited the seller to your home to do, though extra goods or services sold during that visit are covered.¹⁹

States can add their own rules. In California, you have three business days to cancel a home improvement contract sold at your home, or five if you're 65 or older, and since January 1, 2026 the contract must give the contractor's email address so you can cancel by email. A service-and-repair contract for an emergency you called about is the exception.^17,20,11

Deposits and payment schedules

Don't pay for the whole job up front. Keep your payments behind the work: a small deposit, payments as stages are finished, and the final payment only when the work is done and you're satisfied.^3,2

Some states limit the deposit. In California the down payment on a home improvement contract can't be more than $1,000 or 10% of the price, whichever is less, with no exception for special-order materials, and a contractor can't collect for work not yet done or materials not yet delivered. New York takes another approach: contractors must put progress payments in an escrow account or post a bond.^21,17,7

• Pay by check or credit card. Never pay in cash, by wire transfer, gift card, payment app or cryptocurrency.
• Paying by credit card gives you a way to dispute a charge for work that wasn't delivered as agreed: write to the card issuer so the letter arrives within 60 days of the statement. For a dispute over poor work, the purchase generally has to be over $50 and you must first try to settle it with the contractor.
• Shop around for financing yourself before taking the contractor's lender. A home equity loan uses your home as collateral; on your main home you have three business days to cancel one.
• Read "no interest if paid in full" offers closely: miss the deadline and the interest is charged back to the day of purchase. PACE loans, repaid through your property tax bill, can also put your home at risk.^{18,22,23,24,25,26}

Watch for liens. A subcontractor, supplier or worker who isn't paid can put a lien on your home even if you paid your contractor in full, and you could end up paying twice. California's protections show what to ask for: before each payment, a conditional lien release from anyone who could file a lien, and an unconditional one after you've paid; checks made out jointly to the contractor and the supplier or sub; and, since 2026, the names and license numbers of the subcontractors, which the contractor must give you on request. Lien laws differ by state; ask how yours works.^17,27,20

Permits and inspections

A permit means the building department checks the work against the code: the wiring, the gas, the venting, the structure. Skipping a required permit can bring fines and penalties. Check what your job needs with your city or county building department; each job page gives a rough guide.^17,7

Get the contractor to confirm in writing that they will get every permit the job needs. A contractor who asks you to get the permit is a warning sign: in California, pulling it yourself as an "owner-builder" makes you responsible for the whole project, possibly including injuries to the workers.^11,3,28

Red flags

Slow down, or walk away, when a contractor:^3,1,18,29

• knocks on your door unasked, says they're "in the area", or offers a cut price on roofing, painting or paving
• says they have materials left over from another job
• pushes you to decide now, or offers a discount only if you sign today
• wants the whole price up front, or cash only
• asks you to get the building permit
• says the work doesn't need a licensed contractor
• steers you to a lender they know
• asks you to sign a contract with blanks, or to sign your insurance check over to them

After a storm or flood, scammers follow the damage. Get bids from contractors you can check, and never sign an insurance check over to a contractor; ask your bank or credit union about a certificate of completion arrangement, so the contractor is paid as the work gets done. FEMA doesn't charge to apply for help or for an inspection. In California, contracting without a license in a declared disaster area is a felony.^18,30,31

If something goes wrong

Talk to the contractor first, then put the problem and what you want done in writing. Keep notes and copies of the contract, change orders, receipts, letters and photos.³

• Contact your state attorney general or your local consumer protection office; USA.gov lists them by state.
• File a complaint with your state's contractor licensing board, if it has one. In California you have four years to file with the CSLB, which also runs mediation and arbitration for smaller disputes. It can't promise you'll get money back.
• Claim against the contractor's license bond, where your state requires one, through the bond company named on the license record.
• Use small claims court for smaller money disputes without a lawyer. California's limit is $12,500 for individuals; other states' limits differ.
• If you paid by credit card, dispute the charge with your card issuer.
• Report a scam to the Federal Trade Commission at ReportFraud.ftc.gov. The FTC doesn't resolve individual cases, but your report goes into a database law enforcement uses.^{3,32,10,17,33,34,22,35}