Who this tool is for
- Homeowners about to hire a general contractor or specific trade.
- Anyone comparing multiple bids and wanting a consistent way to evaluate them.
- Property owners preparing a brief or scope for a contractor for the first time.
Before you start
- Licensing, registration and insurance requirements for contractors vary by jurisdiction. Confirm what is required where the project is.
- This checklist is not legal advice. For larger projects, consider a qualified local lawyer to review the contract.
- Verify any licenses and registrations with the issuing authority, not only with the contractor's website.
- Structural, electrical, plumbing, gas and code-related work should be performed by qualified, licensed trades and inspected as required.
The checklist
Scope clarity
- Bring a written one-page scope to the first conversation.
- Define rooms in scope and out of scope.
- Define finish level and any allowances for unspecified items.
- Confirm assumptions about the existing condition of the building.
- Clarify what is owner-supplied vs. contractor-supplied.
Written estimate / agreement
- Request a written estimate with inclusions and exclusions.
- Request explicit allowances for items not yet specified.
- Confirm assumptions tied to the price.
- Confirm validity period of the estimate.
- Use a written contract — never a verbal commitment — for the work.
References and past work
- Ask for references on similar projects in similar buildings.
- Contact references and ask about communication, schedule and problem handling.
- Ask for photos or a portfolio of completed work where available.
- Where possible, view a completed project in person.
Licensing and registration
- Confirm whether the trade and the jurisdiction require licensing.
- Verify license status with the issuing authority.
- Confirm the license covers the type and scale of work being performed.
Insurance
- Confirm general liability insurance and current policy dates.
- Confirm workers' compensation cover where required.
- Confirm the insurer can verify the policy directly.
- Confirm any sub-contractors are also appropriately insured.
Timeline and communication
- Confirm a written start date and an expected completion date.
- Confirm the project supervisor and the day-to-day point of contact.
- Confirm response-time expectations for emails or calls.
- Confirm how site visits and decision points will be handled.
Change order expectations
- Confirm what triggers a written change order.
- Confirm the pricing model for change orders.
- Confirm how change orders affect the schedule.
- Confirm both parties sign before extra work proceeds.
Payment schedule caution
- Tie payments to milestones, not to the calendar.
- Be cautious of very large up-front deposits.
- Confirm whether the jurisdiction caps deposits by law.
- Use traceable payment methods rather than cash.
- Keep all invoices, lien waivers and receipts in the project file.
Red flags
- Pressure to sign quickly or to pay a large unrefundable deposit.
- Reluctance to provide a written scope, estimate or contract.
- No verifiable license or insurance where the jurisdiction requires them.
- Inability or unwillingness to provide references on similar work.
- Verbal-only change requests once work has started.
- Significant unexplained price gaps between this and other bids.
These check boxes are decorative. The tool is intentionally static — print or save the page, or transfer items into your own project tracker. For how this tool was produced, see the Content Methodology.
Questions to ask a professional
- Are you and any sub-contractors licensed and insured for this scope of work in this jurisdiction?
- Can we see written references from at least two similar recent projects?
- What is your written change-order process and pricing model?
- What is your payment schedule, and how do milestones map to deposits and progress payments?
- How are punch list, defects-liability and warranty terms handled?
- Who pulls and tracks any required permits for this scope?
Common mistakes
- Hiring on the lowest number without comparing scope and assumptions.
- Skipping reference checks because the contractor seems friendly.
- Paying large up-front deposits with no milestone protection.
- Approving change orders verbally and reconstructing them later.
- Treating a one-page proposal as a contract.
- Ignoring jurisdictional licensing or registration requirements.
Limitations
- This is a due-diligence aid, not legal advice.
- Licensing, registration and consumer-protection rules vary by jurisdiction.
- Specific contract language should be reviewed by a qualified local professional, especially on larger projects.
Sources and further reading
Where this tool draws context from
External links open the publishing organization directly. These sources provide background context — not project-specific rules. Always confirm specifics with the local building authority or qualified professionals.
U.S. Federal Trade Commission
FTC consumer advice
General consumer due-diligence and contract-handling guidance. Jurisdiction-specific rules apply outside the U.S.
consumer.ftc.gov(opens in a new tab)U.S. Occupational Safety and Health Administration
OSHA
Related context for workplace safety and contractor practices on active job sites in the U.S.
www.osha.gov(opens in a new tab)
Frequently asked questions
Questions readers ask about this tool
Is the lowest bid usually the right choice?
Not on its own. A low bid may exclude items another bid includes, use lower-grade materials, or carry less contingency. Compare assumptions, scope and references — not just price.
How many bids should I get?
Three is a common starting point. The value of multiple bids depends on each being priced against the same written scope. One careful bid against a clear scope can beat three bids against a fuzzy one.
Is it OK to pay a large deposit up front?
There is no universal answer, and some jurisdictions cap deposits by law. The principle is that payments should track work performed and materials delivered. Discuss the schedule of values before signing.
Do I need a written contract for a small job with a local trade?
A written agreement protects both sides — scope, price, schedule, change-order rules, warranties. Even small jobs benefit from written terms. Local laws may also require them.
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