Hiring Contractors: Quick Checklist

Before you hire

• Get 2–4 quotes with the same scope.
• Ask what’s excluded (permits, disposal, repairs).
• Verify licensing (where applicable) and insurance.
• Get a written timeline and payment schedule.
• Confirm warranty terms and change-order process.

How to compare bids (apples-to-apples)

• Use the same scope: what’s included, what’s excluded, and who supplies materials
• Confirm product/finish level (paint line, cabinet grade, shingle type, etc.)
• Compare allowances (if cabinets/counters/fixtures are allowances, ask the $ amount)
• Ask for a change-order process (how extras are approved and priced)
• Request a start date, duration estimate, and what causes delays

Need a reusable side-by-side worksheet? Use the Contractor Search bid comparison tool to compare scope, warranty, exclusions, and price context before you decide.

What to verify

• Insurance: ask for proof of liability + workers’ comp (if they have employees)
• License (where applicable): verify status with your state/city
• References: call 1–2 recent customers and ask about communication + change orders
• Experience with your project type and materials
• Who is actually doing the work (crew vs subcontractors)

Contract + payments (reduce risk)

• Get a written contract with scope, materials, timeline, and warranty
• Use milestone payments tied to progress (not calendar dates)
• Avoid paying the full amount up front
• For larger jobs, ask about lien waivers and permit responsibility

Why bids vary — and what it means

A $4,000 gap between two bids on the same project doesn't mean one contractor is padding the quote. It usually means they're including different things. Here's what typically explains the difference:

Scope differences

One contractor may include full surface prep and two coats; another may quote one coat with minimal prep. Both quotes are internally consistent — but you'll get very different results. Ask each bidder to describe exactly what's included.

Material grade

A contractor using premium paint, grade-A lumber, or high-end roofing shingles will quote higher than one using builder-grade materials. Make sure you know which tier you're comparing across bids.

Overhead and insurance

Legitimate contractors carry liability insurance, workers' comp (where applicable), and normal operating costs. The lowest bid often comes from someone without adequate coverage — which shifts the risk to you if something goes wrong on your property.

Red flags

• Vague bid with no scope details
• Pressure tactics (“today only”) or refusal to put details in writing
• Cash-only demands or unusually large deposits
• Quote is dramatically lower than others with no clear explanation
• No proof of insurance

Frequently asked questions

How many bids should I get?

Two to four bids is the practical range for most projects. One bid gives you no comparison baseline. More than four can become hard to manage. Start with two, add a third if the first two are far apart or if the scope is large.

Should I always hire the lowest bidder?

Not automatically. The lowest bid may exclude prep work, use lower-quality materials, or come from a contractor without adequate insurance. A bid 20–30% below the others warrants a direct question: what's included that the others don't include, and what's excluded? If the answer is unclear, treat it as a red flag.

Do I need a written contract for a small project?

Yes. Even for a $1,500 job, a written agreement covering scope, timeline, payment, and warranty protects both parties. It reduces disputes about what was promised and gives you recourse if something isn't completed correctly. Contractors who resist putting things in writing are a risk regardless of project size.

How much should I pay upfront?

10–30% is a reasonable deposit for most residential projects to cover materials and scheduling. For larger jobs, milestone-based payments tied to project progress are better than calendar-based payments. Never pay the full amount upfront, and hold 5–10% for final completion sign-off.

What happens if a worker gets injured on my property?

If the contractor carries workers' compensation insurance, injuries to their employees are covered by that policy. Without it, a homeowner can potentially be liable for medical costs. This is why verifying insurance — not just taking the contractor's word for it — matters before any work starts.

Use a calculator before you get bids

Running a cost estimate before collecting bids gives you a realistic baseline — and helps you spot when a quote is suspiciously low or high. Start with the project type you're planning:

• Roofing cost calculator — estimate by material type (asphalt, metal, tile, flat), complexity, and ZIP.
• Landscaping cost calculator — estimate by scope (softscape, mixed, hardscape, full redesign) and area.
• All project calculators →

Ready to request quotes? → Submit your project details and get matched with local contractors.