Why These Questions Matter Before You Sign

Hiring a general contractor is one of the largest financial decisions most homeowners make outside of purchasing a home itself. Yet many people sign contracts after a single meeting, relying on a firm handshake and a reasonable-sounding estimate. That approach leaves you exposed to cost overruns, unfinished work, and legal disputes that are difficult and expensive to resolve.

The questions in this guide are not about being adversarial — they are about establishing a clear, professional working relationship. Contractors who are properly licensed, insured, and experienced expect these questions. A contractor who resists or deflects them is signaling a problem. See our renovation planning checklist for the broader preparation process before contractor interviews begin.

Core Questions to Ask Every Contractor

The following practices form a non-negotiable baseline when vetting any general contractor. Work through each one before you agree to anything in writing.

1

Verify license status independently through your state licensing board

A contractor can claim to be licensed without actually holding a current, valid license. Checking directly with the state board confirms the license is active, not suspended or expired, and covers the type of work you need done.

Example: Before signing, visit your state's official contractor licensing portal and search the contractor's license number — not just their name — to confirm its status and expiration date.
2

Request certificates of insurance for both liability and workers' compensation

Without adequate coverage, you could be held financially responsible for injuries on your property or damage to neighboring homes. A certificate of insurance (COI) should list you as an additional interested party and show current coverage dates.

Example: Ask the contractor to have their insurer send the COI directly to you rather than accepting a copy the contractor provides, which could be outdated or altered.
3

Demand a written, itemized scope of work before signing any contract

Vague language like 'remodel kitchen' leaves enormous room for dispute. A detailed scope specifies materials, finishes, quantities, demolition responsibilities, and what is explicitly excluded from the job.

Example: A thorough scope might state: 'Install 22 linear feet of pre-painted MDF baseboard, nail and caulk, in the master bedroom — excludes painting' rather than simply 'install trim.'
4

Ask who will actually perform the work and confirm subcontractor qualifications

General contractors frequently subcontract specialty work — electrical, plumbing, tile installation. If subcontractors are unlicensed or uninsured, your protection disappears even if the GC is properly credentialed.

Example: Ask the contractor to name all expected subcontractors and confirm in writing that each carries their own current license and insurance for their trade.
5

Structure payments around project milestones, not calendar dates

Front-loading payments gives contractors little financial incentive to finish the job on time or to your satisfaction. Milestone-based payments keep leverage on your side through completion.

Example: A common structure: 10–20% at contract signing, a portion at framing completion, another at rough-in inspections, and the final 10% only after punch-list sign-off.
6

Confirm who is responsible for pulling permits

Unpermitted work can create serious problems when you sell your home, file an insurance claim, or need future repairs. Licensed contractors typically pull permits themselves — a contractor who refuses or asks you to pull permits is a red flag.

Example: Ask directly: 'Will you obtain all required permits, and can I see copies once they are issued?' Include permit responsibility in the written contract.

Contractor Licensing Varies by State

Licensing requirements for general contractors differ significantly across the US — some states require statewide licensure, while others regulate at the county or city level. Always check with your state's contractor licensing board or consumer protection office to understand what credentials are legally required in your area. A contractor who is licensed in one state is not automatically licensed in another.

Reading the Contract Before You Sign

Once you have vetted the contractor, the contract itself deserves the same careful attention. Look for these elements in every agreement:

  • Start and estimated completion dates — vague timelines give contractors no accountability for delays.
  • Change order process — any deviation from the original scope should require written approval and a cost adjustment before work proceeds.
  • Lien waiver provisions — confirm the contract requires the contractor to provide lien releases from subcontractors and suppliers upon payment, protecting you from claims on your property.
  • Dispute resolution clause — understand whether disagreements go to mediation, arbitration, or court.

“A written contract is not a sign of distrust — it is the foundation of a professional relationship. Every detail left unwritten is a disagreement waiting to happen.”

— American Institute of Architects, Professional organization representing architects and construction industry standards

If any section of the contract is unclear, consider having a real estate or construction attorney review it before you sign. This is especially important for projects exceeding $25,000. For related guidance on reviewing agreements in high-stakes situations, the same principles that apply to reviewing a home purchase agreement — slowing down, reading every line, and asking for clarification — apply here too.

Take Action Before Your Next Contractor Meeting

You do not need to wait until you have a contract in hand to start protecting yourself. These steps can be taken right now.

high Look up your contractor's license number on your state licensing board's website today before your next meeting.
high Email the contractor asking for a certificate of insurance to be sent directly from their insurer to your email address.
medium Write down every material, finish, and inclusion you expect from the job and share it before contract negotiations begin.

For further context on when a project truly requires a licensed professional versus what you might handle yourself, our guide on when to call a pro versus DIY can help you frame the scope of work before interviews begin.

This article is for general informational purposes only and does not constitute legal or financial advice. For contracts involving significant sums or complex projects, consult a licensed attorney familiar with construction law in your state.