Get at least three written bids for the same scope. Check each contractor's license with your state or local licensing board and ask for certificates of liability and workers' compensation insurance. Make sure the contractor pulls required permits. Sign a written contract with scope, materials, schedule, a payment plan tied to progress and change-order terms, and collect lien waivers as you pay.
Most remodeling problems start with an unclear contract. These checks prevent the common ones.
Before you call
Write down the scope: rooms, finishes, appliances and fixtures. The clearer the scope, the more comparable the bids.
Vetting
| Check | How |
|---|---|
| License | Search your state or local licensing board |
| Insurance | Request certificates for liability and workers’ compensation |
| References | Recent jobs of similar size |
| Reviews and complaints | Consumer protection office, online reviews |
| Permits | Confirm they will pull them |
The contract
A good contract includes:
- Detailed scope and materials, including brands and models where possible.
- Allowances for items not yet chosen, with amounts.
- Start date, schedule and what happens if it slips.
- Payment schedule tied to completed stages.
- Change-order process in writing, with pricing.
- Warranty on workmanship.
- Cleanup and disposal.
Payments
Keep the deposit modest and within your state’s limits. Pay as stages are completed and inspected. Collect lien waivers from the contractor and major suppliers.
During the job
Keep a written log of changes and decisions. Inspections at framing, plumbing and electrical stages protect you; do not skip them.
Before choosing materials, see flooring compared, countertops, windows and roofing.
Browse planning and budgets.
Common questions
How much should a contractor's deposit be?
Many states cap deposits for home improvement work. Check your state's rule and avoid paying most of the price before work begins.
Who pulls the permit?
Usually the contractor. A contractor who asks you to pull permits in your name may be avoiding licensing requirements.
What is a lien waiver?
A document from the contractor or a supplier confirming they have been paid, so they cannot place a lien on your home for that amount.
How do I compare bids?
Make sure each bid covers the same scope and materials, with allowances spelled out. The lowest price often leaves items out.