Key Takeaways
Summary
18 items · 45–90 minutes
Why This Verification Step Is Non-Negotiable
Hiring the wrong contractor — one who is unlicensed, uninsured, or simply unreliable — can leave you with unfinished work, structural problems, or legal liability that costs far more to resolve than the original project. Yet most homeowners focus almost entirely on price and availability, skipping the verification steps that matter most.
This checklist walks you through every checkpoint to complete before a contractor starts any work on your home. Whether you're planning a kitchen remodel, a roof replacement, or a bathroom addition, the process is the same. You'll also want to understand which projects require permits — see our guide on which home improvement projects require a permit — since confirming that your contractor will pull the proper permits is part of this process.
License & Registration
Insurance Verification
References & Track Record
Bids & Written Contract
Payments & Financial Safeguards
Tools You'll Need to Do This Right
Running these checks doesn't require any special expertise, but a few resources make the process faster and more reliable. Having these on hand before you start calling contractors will keep the process organized.
State Contractor Licensing Board Website
Used to verify license status, category, and any disciplinary history for a contractor by name or license number.
Certificate of Insurance (COI) from Contractor
Documents that the contractor carries active general liability and workers' compensation coverage.
Written Contract Template
Provides a structured framework covering scope, timeline, payment schedule, and dispute resolution to formalize the agreement.
Local Court or County Recorder Website
Allows you to search for liens, judgments, or past lawsuits filed against a contractor's business.
Better Business Bureau (BBB) Search
Offers a supplementary view of complaint history and unresolved disputes filed by past clients.
Red Flags to Watch For During the Process
Even after running through the checklist, a contractor's behavior during the bidding phase can reveal a great deal. Trust signals matter alongside documentation.
Pressure to Skip the Contract
A contractor who discourages a written contract or insists on a handshake deal is a significant red flag. Verbal agreements are difficult to enforce and leave you with no recourse if the work is substandard or abandoned. Similarly, unusually low bids — well below the other two or three you received — may indicate that key costs, permits, or materials have been left out of scope.
Large Upfront Cash Demands
Requests for half or more of the total project cost before work begins are a common pattern in contractor fraud cases. Legitimate contractors generally expect a modest deposit and structure remaining payments to project milestones. If the request for cash upfront feels uncomfortable, trust that instinct and do not proceed.
Renovation costs are another area where homeowners are often caught off guard. Once you've selected a vetted contractor, review our breakdown of the real costs behind common home renovation projects to build a more realistic budget. And if this project is part of a larger purchasing decision — say, renovating before listing a home — our pre-purchase checklist for smarter decisions can help you think through value and need before committing.
Unpermitted Work Can Create Serious Legal and Financial Consequences
If a contractor performs work that legally requires a permit and none is pulled, you — as the homeowner — may bear responsibility for code violations when you sell or refinance the property. Unpermitted structural, electrical, or plumbing work can also void your homeowner's insurance in the event of a related claim. Always confirm in writing which permits are required for your project and verify they have been applied for before work begins.