Contractor Hiring Checklist

Get 3-5 recommendations from neighbors, friends, or online reviews

Tip: Google Business Profile reviews are the most reliable. Look for contractors with 50+ reviews and 4.5+ stars. Be cautious of companies with only 5-star reviews.

Verify state contractor license (PA HIC or NJ HIC registration)

Tip: PA: Check at attorneygeneral.gov. NJ: Check at njconsumeraffairs.gov. An unlicensed contractor means zero legal protection for you.

Confirm general liability insurance ($1M+ coverage)

Tip: Ask for a Certificate of Insurance. Call the insurance company directly to verify it's active. Policies can lapse without your knowledge.

Verify workers' compensation insurance coverage

Tip: If a worker is injured on your property and the contractor has no workers' comp, YOUR homeowner's insurance may be responsible.

Schedule in-person meetings at your home with each contractor

Tip: A good contractor needs to see the actual conditions before quoting. Phone-only estimates are a red flag for residential work.

Ask for 3+ recent references and actually call them

Tip: Ask references: Was the project on budget? On time? How were change orders handled? Would you hire them again? Did anything go wrong?

Request detailed written estimates (not ballpark numbers)

Tip: A proper estimate breaks down labor, materials, permits, and contingency. Vague 'lump sum' estimates make it impossible to compare contractors.

Ask to see their recent completed projects (photos or in person)

Tip: Quality contractors are proud of their work and happy to show it. If they can't show recent projects in your area, that's concerning.

Review the contract thoroughly before signing (scope, timeline, payment terms, warranty)

Tip: The contract should list every item being done, materials being used, start and completion dates, and a specific payment schedule tied to milestones.

Ensure the payment schedule is tied to milestones (never 50%+ upfront)

Tip: Standard: 10-20% deposit, then payments at framing, rough-in, finish, and final completion. A contractor asking for 50%+ upfront is a major red flag.

Confirm who pulls permits and who is responsible for inspections

Tip: Your contractor should pull all necessary permits in their name. Permits pulled in YOUR name could shift liability to you if work fails inspection.

Understand the change order process before work begins

Tip: Change orders should be written, signed by both parties, and include the cost impact BEFORE the extra work starts. Verbal agreements lead to disputes.