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How to Find a Good Contractor (7-Step Vetting)
The process
Define scope in writing, collect 3+ bids, verify license and insurance, call 3 references from the last year, check court records for liens, sign a fixed-price contract with milestones, hold 10% retention. Skip any step and you become the cautionary tale.
Worked example: $15,000 bath remodel bids
Bid A $11,000 (no license number, 50% deposit), Bid B $15,500 (licensed, itemized, 10% deposit, 10% retention), Bid C $19,000 (design-build, warranty). Bid B wins: the $4,000 gap to A is insurance, warranty, and permits. Cheapest bids omit exactly what protects you.
Red flags
- Demands over 10–15% deposit or cash only
- No physical address, license number, or insurance certificate
- Door-knocking after storms with today-only pricing
- Vague allowances instead of fixed specifications
- Refuses permits to save you money
Contract must-haves
Start and end dates with delay penalties, payment tied to milestones (never time-based draws), exact brands and model numbers, change-order pricing method, warranty terms in writing, and cleanup responsibility. Verbal promises are worth the paper they are printed on.
FAQ
- Where to search? State license board first, then referrals, then review sites — in that order.
- How many bids? Three minimum; five for jobs over $20,000.
- Pay in full early for discount? Never — discounts under 5% are not worth losing all leverage.
Cost reality
Vetting costs nothing but an afternoon of calls. Hiring wrong costs 2× the job to fix plus months of stress. Licensed, insured, itemized, retained — four words worth thousands.
Limits
Even perfect vetting cannot prevent every dispute — document everything in writing and photograph daily progress. For jobs over $50,000 consider a construction attorney review ($300–$500). See our repair estimators for planning ranges.
Reference calls that work
Ask references: did they start and finish on schedule, how did they handle surprises, would you hire them again, and may I see the work. Drive by two past jobs — curb views reveal finishing quality instantly. Skip references older than 2 years; crews and standards change.
Payment structure
Standard safe schedule: 10% at signing, 25% at demolition complete, 25% rough-in passed, 25% cabinets and finishes set, 10% retention at punch-list completion plus 10% final on walkthrough approval. Never let payments run ahead of visible progress.
One last rule
Everything verbal gets confirmed by text or email the same day. Nice contractors with bad paperwork still produce bad outcomes — the contract protects you both, and professionals respect clients who document.