How to vet a contractor before you sign

Check the licence, the insurance, the record and the references, and read the contract. Do it before you pay a deposit.

Verify the basics

• Licence: confirm with the licensing board where required, and check it covers the work type.
• Business registration and address.
• Insurance certificates, sent from the insurer or broker.
• Complaints or disciplinary history with the licensing body or consumer office.

Ask for evidence of experience

Ask for recent comparable projects, with owners you can contact. Ask what went wrong on a past project and how it was handled. Visit a job in progress if you can.

Talk to references

Ask about schedule, communication, cost changes, cleanup, and whether the owner would hire them again. Ask a subcontractor or supplier too.

Check finances and capacity

Ask how many projects are running now and who would manage yours. Ask about supplier payment history. See supplier due diligence.

Warning signs

• Large deposits before any work or permit.
• Pressure to skip permits.
• No written contract or vague scope.
• Cash-only demands.
• No insurance proof.

Pair this with a careful contract, lien protection and insurance checks.

Quick answers

• Where do I check a licence? With the state, provincial or local licensing board for the trade.
• Is a low price a warning sign? It can be if the scope is incomplete. Level the bids.
• Should I pay a deposit? Keep it modest and tied to defined milestones, and follow local limits.

Rules differ by country, state and city. Confirm requirements with your local authority having jurisdiction and with the licensed professionals on your project; nothing here is legal, engineering or financial advice.

Questions people ask

Where do I check a licence?

With the state, provincial or local licensing board for the trade.

Is a low price a warning sign?

It can be if the scope is incomplete. Level the bids.

Should I pay a deposit?

Keep it modest and tied to defined milestones, and follow local limits.

Sources and further reading

• Federal Trade Commission consumer advice
• NAHB

Text Digital Oro

Digital Oro International advertises on The Company Chronicle. This guide was written by our editorial team from public sources and general professional practice; it does not describe a guarantee, quote or offer from Digital Oro International. Confirm current terms, prices and availability with the operator before you decide.