Questions to Ask a Contractor Before Signing Anything

Home & Garden Editorial Team Staff Writer · Aug 18, 2024 · 5 min read

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A solid contractor interview covers licensing, timelines, payment schedules, and dispute processes. Use this list before any agreement is signed.

Key Takeaways

Always verify a contractor's license, insurance, and bonding status before any agreement is signed.
A detailed written contract protects both parties — verbal agreements are difficult to enforce.
Payment schedules tied to project milestones are safer than large upfront lump-sum payments.
Understand who pulls permits and who is responsible if inspections fail or code issues arise.
Clarify subcontractor arrangements and how disputes or change orders will be handled in writing.

Why This Conversation Matters Before You Sign

Hiring a contractor for a home improvement project is one of the largest financial commitments many homeowners make outside of buying the home itself. A poorly vetted contractor can mean stalled timelines, surprise costs, substandard work, or — in the worst cases — legal disputes and safety hazards. The questions you ask before signing a contract are your best line of defense.

This checklist is designed to give you a structured way to interview contractors, compare bids fairly, and enter any agreement with clear expectations on both sides. It applies whether you're hiring for a kitchen renovation, a roof replacement, a bathroom addition, or any other significant project. For a deeper look at what line items in an estimate actually mean, see our guide to reading a contractor's bid.

Use this checklist with every contractor you're considering — not just the one you're leaning toward. The answers reveal as much about professionalism and communication style as they do about credentials.

Credentials and Legal Standing

Ask for the contractor's state license number and verify it through your state's licensing board before moving forward. Must

Confirm they carry general liability insurance and ask for a certificate of insurance naming you as an additional insured for the project duration. Must

Ask whether they carry workers' compensation insurance covering all workers on your property. Must

Ask if they are bonded, which provides an additional layer of financial protection if the contractor fails to complete the work. Should

Request references from at least three recent projects similar in scope to yours and actually contact them. Must

Permits and Code Compliance

Ask which permits your project requires and confirm who is responsible for pulling them — it should almost always be the contractor. Must

Clarify who is responsible for scheduling and passing all required inspections throughout the project. Must

Ask what happens and who pays if work fails an inspection or must be corrected to meet local code. Must

Subcontractors and On-Site Team

Ask whether any portion of the work will be subcontracted and, if so, which trades and who manages them. Must

Confirm that subcontractors are also licensed and insured for the work they'll perform. Must

Ask who the day-to-day point of contact on-site will be and how often the primary contractor will be present. Should

Timeline and Scheduling

Ask for a written project schedule with start date, major milestones, and an estimated completion date. Must

Ask how many other projects they are running simultaneously and how that could affect your timeline. Should

Ask what conditions — weather, material delays, permit hold-ups — could extend the schedule and how those situations are communicated. Should

Payment Structure

Ask for a payment schedule tied to project milestones rather than arbitrary dates, and confirm what percentage is due at each stage. Must

Be cautious of any contractor requesting more than 30–33% of the total project cost as a deposit before work begins. Must

Confirm what forms of payment are accepted and whether a final payment holdback is standard practice until the punch list is complete. Should

Contract Terms and Dispute Resolution

Ask how change orders are handled and insist that any scope or cost changes be documented in writing before work proceeds. Must

Ask what warranty they provide on their workmanship and how warranty claims are submitted and resolved. Must

Ask what the process is if a dispute arises — mediation, arbitration, or litigation — and make sure it's outlined in the contract. Should

Ask whether the contract includes a lien waiver clause and confirm how supplier or subcontractor liens are handled if they arise. Nice to have

What to Do After You Have the Answers

Once you've worked through these questions with each candidate, compare their answers side by side. Red flags include vague answers about licensing, pressure to skip permits, requests for more than a third of the total cost upfront, or reluctance to put anything in writing. Any of these warrant serious caution.

Never Rely Solely on Verbal Agreements

A contractor's word, no matter how trustworthy they seem, is not a substitute for a written contract. If something isn't in the signed agreement, it is extremely difficult to enforce if a dispute arises. Every scope item, payment term, timeline expectation, and warranty condition should appear in the written contract before any work or payment changes hands.

Permits deserve special attention. Unpermitted work can create problems when you sell your home, file an insurance claim, or need future repairs. Our companion article explains what a building permit actually covers and why skipping one can cost you later.

Once you've chosen a contractor, make sure every verbal agreement finds its way into the written contract before you sign. Change orders, timeline adjustments, and material substitutions should all be documented in writing as they arise — not resolved by memory after the fact. Approaching major contracts with this kind of deliberateness is a habit that pays off in every context, similar to the mindset behind asking the right questions before any major purchase.

Watch Out for Pressure to Skip Permits

If a contractor suggests skipping permits to save time or money, treat it as a serious red flag. Unpermitted work may need to be torn out and redone at your expense, can complicate home sales, and may void your homeowner's insurance for related claims. Always insist that required permits are obtained — even if it adds a few days to the project start.

Home & Garden Editorial Team

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Questions to Ask a Contractor Before Signing Anything

Why This Conversation Matters Before You Sign

What to Do After You Have the Answers

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