How to Vet a Contractor: The Complete DIY Checklist
Updated July 4, 2026 · 8 min read
Hiring the wrong contractor is expensive and hard to undo once work has started. The good news is that vetting a contractor properly is a repeatable process, not a guessing game — the same handful of checks separate a safe hire from a costly mistake. This guide walks through each check in order, with exactly where to look and what a red flag looks like, so you can run it yourself before you sign anything or hand over a deposit.
1. Verify the license — active, unexpired, and for the right trade
Every state licenses contractors through a state board, though the name varies — a Contractors State License Board, a Department of Business and Professional Regulation, or a similar agency. Search for your state name plus "contractor license lookup" to find the right board's public search tool.
- 1Find your state's licensing board and use its public license lookup tool.
- 2Search by the contractor's business name or license number (ask for it before the search if they haven't given it).
- 3Confirm the license status shows active, not expired, suspended, or revoked.
- 4Confirm the license classification matches the actual job — a plumbing license does not cover roofing, and a general contractor license does not always cover electrical work. The trade on the license needs to match the trade you're hiring for.
- 5Note the license issue date. A very recently issued license isn't automatically a problem, but it's worth asking how long they've operated under a previous entity or license.
2. Verify insurance — general liability and workers' comp, both current
Ask every contractor for a Certificate of Insurance (COI) before they set foot on your property. This is a standard document their insurer issues in minutes — a legitimate, established contractor will not hesitate to provide one.
- Confirm general liability insurance is listed and currently in force — this covers damage to your home or property during the job.
- Confirm workers' compensation is listed and currently in force — this covers injury to any worker on your property. This is the one homeowners most often skip.
- Check the effective and expiration dates on the certificate itself — don't just take their word that coverage is active.
- For any job of meaningful size or duration, ask to be added as a certificate holder. This means the insurer notifies you directly if the policy lapses or is cancelled mid-job.
3. Audit reviews and complaint history for patterns
Star averages alone tell you very little. The useful signal is in the details, and it takes a bit more digging than reading the top review.
- 1Read the 1-3 star reviews specifically, not just the 5-star ones — this is where real problems surface.
- 2Check the Better Business Bureau (BBB) for a company profile, complaint count, and how complaints were resolved.
- 3Check your state's consumer protection or attorney general complaint database for any formal complaints on file.
- 4Look for repeating patterns across multiple sources: no-shows, surprise charges added mid-job, unfinished or abandoned work, or pressure to pay upfront.
- 5Pay close attention to how the company responded to negative reviews or complaints — a professional, specific response to a legitimate issue is a good sign; defensiveness, denial, or no response at all is not.
4. Check responsiveness before you check craftsmanship
How a contractor behaves before you hire them is a strong preview of how they'll behave once they have your deposit.
- Do they return your first call or message within a reasonable time, or does it take days of chasing?
- Do they give you a real, specific arrival window for the estimate visit — and show up in it?
- Is the person who gives you the quote the same person (or same crew) who will actually do the work?
- Do they answer direct questions about license, insurance, and timeline plainly, or do they deflect?
5. Get everything in writing before work starts
A verbal agreement protects no one. Before any work begins, get a written, itemized estimate that spells out exactly what you're paying for.
- An itemized scope of work — materials, labor, and specific tasks, not a single lump-sum line.
- Any warranties on materials and workmanship, in writing, with duration and what's covered.
- Who is responsible for pulling permits — this should be the contractor for most structural, electrical, and plumbing work, and it should be stated explicitly.
- A written timeline with a start date and estimated completion date.
6. Protect the money — deposits, payment stages, and red flags
How a contractor structures payment tells you a lot about their financial stability and their intentions.
- A deposit should be reasonable relative to the job size — be wary of any contractor demanding a large upfront payment before any work or materials are committed.
- Payments should be tied to completed stages of the job, not an arbitrary schedule.
- Hold the final payment until after you've inspected the completed work.
- Treat pressure tactics as a red flag: demands for full payment upfront, cash-only insistence, urgency to sign today, or reluctance to put anything in writing.
| Check | Where to verify | Red flag |
|---|---|---|
| License | Your state's licensing board lookup | Expired, suspended, or wrong trade classification |
| Insurance | Certificate of Insurance from the contractor | No workers' comp, or dates don't cover your job |
| Reviews/complaints | BBB and state consumer-complaint database | Repeated no-shows or unfinished-work complaints |
| Responsiveness | Your own first-contact experience | Slow callbacks, vague arrival windows |
| Contract | Written itemized estimate | Lump-sum only, no permit or warranty language |
| Payment | Proposed deposit and payment schedule | Large upfront payment demanded before work begins |
Or skip the legwork entirely
This six-step process works, but it takes real time to do properly for every contractor you're considering — pulling license records, requesting and checking a COI, reading complaint databases, and comparing quotes. This is exactly what HomeDependable does for you, free, before we ever connect you with a contractor. We follow our vetting standard: license verified for your state and trade, insurance verified for both general liability and workers' comp, review and complaint history audited for patterns, and responsiveness confirmed — before any contractor gets your number. We're not a lead marketplace that sells your information to the highest bidder (see is Angi legit for how that model works); we're a free concierge that coordinates the right contractor for your job and gives you one number to call: ours. Read the full our vetting standard methodology, or skip straight to having us do the vetting for you.
Let us vet them for you — free
Frequently asked questions
- How do I check if a contractor's license is active?
- Go to your state's contractor licensing board website — search your state name plus "contractor license lookup" — and search by the contractor's name or license number. The result should show the license status (active, expired, suspended) and the specific trade classification it covers.
- What's the difference between general liability and workers' comp insurance?
- General liability covers damage to your property during the job — for example, a wall or fixture damaged by the crew. Workers' compensation covers medical costs if a worker is injured on your property. You need both current and active, and a Certificate of Insurance will list each separately with its own effective dates.
- How much of a deposit is reasonable for a contractor to ask for?
- There's no single number that applies to every job, but the deposit should be modest relative to the total cost, and the bulk of payment should be tied to completed stages of work with the final payment held until after inspection. Be cautious of any contractor asking for most or all of the payment before work begins.
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