The Complete Hiring Checklist for Home Renovation Projects

Before You Contact Any Contractor

Before you reach out to a single contractor, take time to define your project clearly. Write down exactly what work you want done, what materials you prefer, your budget range, and your ideal timeline. The more specific you are, the more accurate and comparable your bids will be — and the harder it is for a contractor to add charges later by claiming the scope was unclear.

Research your state's licensing requirements so you know what to ask for. Does your state require a general contractor license? What about specialty licenses for electrical, plumbing, or HVAC work? What is the financial threshold for requiring a license? You can find this information in our state-specific verification guides or on your state licensing board website. Understanding the rules before you start shopping gives you a significant advantage in evaluating contractors.

Getting and Comparing Bids

Get at least three written bids from different contractors for any project over $5,000. Each bid should break down costs for labor, materials, permits, and any other charges. Be cautious of bids that are significantly higher or lower than the others — outliers in either direction are a warning sign.

When comparing bids, make sure each contractor is bidding on the same scope of work. A lower bid may simply mean the contractor is excluding work that the other bids include. Ask specific questions about what is and is not included: permits, debris removal, final cleaning, paint touchups, and warranty coverage are common items that may differ between bids.

While you are collecting bids, verify each contractor's license on LicensedCheck. A quick search takes less than a minute and immediately tells you whether the contractor is licensed, what type of license they hold, and whether there are any issues on their record. This step alone eliminates a large percentage of potential problems.

The Verification Checklist

Before signing a contract with any contractor, verify each of the following. License status: search the contractor on LicensedCheck or your state licensing board website and confirm the license is active and the classification matches your project. Insurance: request a current certificate of general liability insurance and verify it directly with the insurer. Workers' compensation: confirm the contractor carries workers' comp if they have employees, or get written confirmation that they are a sole proprietor with no employees. Bonding: verify the contractor's surety bond is current and note the bond amount. References: contact at least two recent clients and ask specifically about communication, timeline adherence, quality, and how the contractor handled any problems. Complaint history: check your state licensing board's complaint database and the BBB for any disciplinary actions or unresolved complaints.

This verification takes about 30 minutes total and can save you thousands of dollars and months of headaches. Consider it a non-negotiable part of the hiring process for any project.

What Your Contract Should Include

A proper contractor agreement should include the contractor's full legal business name, physical address, and license number. A detailed scope of work describing exactly what will be done, what materials will be used (including brands and grades where relevant), and what is explicitly excluded. The total contract price with a breakdown of costs. A payment schedule tied to specific completion milestones — never a schedule based on dates alone. The project start date and estimated completion date, with provisions for delays. Warranty terms covering both labor and materials. A clear change-order process that requires written approval and pricing before any additional work begins. The permit responsibilities specifying that the contractor will pull all required permits. Cleanup and debris removal responsibilities. And a dispute resolution clause.

Read the entire contract before signing. Do not let a contractor rush you through the signing process. If anything is unclear, ask for clarification in writing. A contractor who objects to putting things in writing is a contractor you should not hire.

During the Project: Protecting Yourself

Your due diligence does not end when the contract is signed. Throughout the project, maintain regular communication with the contractor and visit the job site frequently. Verify that the work matches the contract specifications — both in scope and materials. Confirm that required inspections are being scheduled and passed at each stage.

Make payments only according to the schedule in your contract and only after verifying that the corresponding work has been completed satisfactorily. Never let payments get ahead of the work — this is the most common way homeowners lose money when a contractor abandons a project.

Keep a project file with all documents: the contract, change orders, payment receipts, inspection results, photos of work in progress, and all communications. If any problems arise during the project, address them in writing immediately. A paper trail is your strongest asset if a dispute escalates.

Withhold the final payment until all work is completed to your satisfaction, all required inspections have passed, you have received lien waivers from the contractor and all subcontractors, and the contractor has cleaned up the job site. The final payment is your last point of leverage — use it wisely.