Before You Sign With A Contractor, Check These 10 Things

A contractor with a friendly smile and a pickup truck can feel like the answer to every prayer when your roof leaks or your kitchen is a decade out of date. That is exactly when it pays to slow down.

Several bright yellow hard hats lined up in a row, representing the contractors a homeowner should vet before signing

The Federal Trade Commission’s consumer advice article, How To Avoid a Home Improvement Scam, first published in 2022, lays out what to check before you hire anyone. Its companion Pass It On flyer boils it down to a simple motto: stop and check it out.

Here are 10 things to check before you put your name on the dotted line. None of them requires a law degree, only a pen, a phone and a little patience.

The best time to ask these questions is before you have fallen in love with a design or a price. Once you are emotionally invested, it gets harder to walk away.

Check That The Contractor Is Licensed And Insured

The FTC says to consider only contractors who are licensed and insured. You can confirm the license with your state or county, and you should ask for proof of insurance.

Licensing rules differ from state to state, so call the agency where you live. A real professional will not mind the questions.

Check With People You Know And Trust

The FTC advises getting contractor recommendations from people you know and trust. A neighbor who just finished a similar project can tell you things no brochure will.

Ask what went well and what went wrong. How a contractor handles a problem tells you plenty.

Check The Reviews With A Critical Eye

The FTC says to read reviews with a critical eye. Check customer reviews and rating sites you trust.

A long list of glowing five-star reviews posted in the same week deserves a second look. So does a page with no reviews at all.

Check For Complaints Before You Sign

The agency suggests asking your local Home Builders Association and consumer protection officials whether they have complaints about the company. It also says to search the company’s name along with words such as scam, review or complaint.

It takes about five minutes at the computer. If a problem has come up before, you want to hear about it now.

Check Several Estimates, Not Just One

The FTC says to get multiple estimates and compare them. Its Pass It On flyer puts the number at three written estimates.

The FTC also says not to automatically choose the lowest bidder. If the bids differ widely, ask the contractors to explain why.

Check That The Estimate Spells Out The Work

According to the FTC, a written estimate should include a description of the work to be done, the materials, the completion date and the price. That is the foundation of any fair job.

If a bid is just a number on a scrap of paper, ask for more detail. A contractor who is serious will happily provide it.

Check Every Line Of The Contract

The FTC says to read the contract carefully, noting that requirements vary by state. It should list the contractor’s name, address, phone number and license number, plus an estimated start and completion date.

The agency says to include any promises made in conversations or calls, and to make sure all the blanks are filled in before you sign. Even if your state does not require a written agreement, the FTC says to ask for one.

Its Pass It On flyer adds a simple rule: do not start work until you have a signed contract.

Check How And When You Pay

The FTC says not to pay the full amount for the project up front. Some states cap how much a contractor can request as a down payment, so check with your state or local consumer agency.

The agency says to make the final payment only after the work is done and you are satisfied. It lists a demand for full payment up front, or a cash-only request, as a warning sign, and the Pass It On flyer says not to pay by cash or wire transfer.

Check Your Right To Cancel

The FTC says the contract should include a written statement of your right to cancel. If you signed at your home or somewhere other than the seller’s permanent place of business, you have three business days to cancel.

Keep your copy of that notice somewhere safe. Mark the deadline on the calendar so you do not miss it.

Check Any Loan Before You Sign It

If the contractor offers financing, the FTC says to compare loan terms before accepting. Make sure you understand the terms and can afford the payments.

The FTC also warns not to sign documents you have not read, that you do not understand, or that have blank spaces, and not to let anyone pressure you into signing. The agency adds that you should consult an attorney or someone you trust before transferring your deed to anyone.

If you suspect a scam, the Pass It On flyer says to report it to the FTC at ftc.gov/complaint.

Print this list and keep it in a folder with your notes, estimates and receipts. Having everything in one place makes your decisions calmer and clearer.

A good contractor welcomes these questions, and a bad one hates them. That alone tells you which one to hire.

Willow and Hearth