Lifestyle

6 Questions to Ask Before Hiring a Home Contractor

By Erica Coleman · June 23, 2026

The home improvement industry generates approximately $600 billion per year in the United States. A significant portion of contractor complaints filed with state consumer protection offices involve the same handful of mistakes — all of which are preventable by asking the right questions before signing a contract.

1. Are you licensed, bonded, and insured — and can I see proof?

Licensing requirements vary by state, but in most states a general contractor performing work above a certain dollar threshold must hold a valid license. Bonding protects you if the contractor fails to complete the work. Insurance — specifically general liability and workers’ compensation — protects you if a worker is injured on your property or if the work causes damage. The FTC recommends verifying a contractor’s license independently through your state or county government, and asking for proof of insurance before any work begins. Any contractor who resists providing this documentation is a contractor you should not hire.

2. Can you provide three references from jobs completed in the last 12 months?

Not three references from the contractor’s best projects five years ago — three from the last year. Call each one and ask specifically: Did the project come in on budget? Did it finish on time? Were there any surprises? Would you hire them again? The answers to those four questions from recent clients tell you more than any website, review, or sales pitch.

3. What exactly is included in this written estimate — and what isn’t?

A verbal estimate is worthless. A written estimate that says “bathroom remodel — $15,000” is barely better. The estimate should itemize materials, labor, permits, demolition, disposal, and any subcontractor work. It should specify what is NOT included — because the most common source of contractor disputes is work the homeowner assumed was included and the contractor says was extra. If the estimate doesn’t specify it, it isn’t included.

4. What is the payment schedule — and do you require more than a third upfront?

The standard payment structure for reputable contractors is one-third at signing, one-third at the midpoint, and one-third upon completion. The FTC warns that any contractor who asks you to pay for everything up front is a red flag — and that the final payment should never be made until the work is complete and you are satisfied with it. Any contractor who demands full payment before starting work is a red flag you should not ignore.

5. How do you handle change orders?

Every renovation encounters something unexpected — a wall that contains wiring nobody knew about, a subfloor that needs replacing, a material that’s backordered. The question isn’t whether changes will happen — it’s how they’re handled when they do. A professional contractor will explain their change order process: how changes are documented, how additional costs are communicated, and how your approval is obtained before any extra work begins. If the answer is vague, the bill at the end will be surprising.

6. What does your warranty cover and for how long?

Reputable contractors stand behind their work — typically for one to two years on labor and longer on materials that carry manufacturer warranties. Ask what happens if something fails within the warranty period. Ask whether the warranty is in writing. Ask whether it covers both materials and labor or only one. A contractor who won’t put their warranty terms in writing is a contractor who doesn’t plan to honor them.

Get three estimates for any project over $5,000. Compare them on the same specifications. Choose the contractor who gives you the clearest answers to these six questions — not necessarily the one with the lowest price.