Hiring a General Contractor: Questions Worth Asking Before You Sign Anything
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Licensing, insurance, payment schedules, and project timelines — what experienced homeowners learn to ask before handing over a renovation to a contractor.
Key Takeaways
- Always verify a contractor's license and insurance before any work begins or money changes hands.
- A detailed written contract protects both parties — verbal agreements are not reliable protection.
- Payment schedules tied to project milestones reduce your financial risk significantly.
- Permits are typically the contractor's responsibility but always the homeowner's long-term liability.
- Three competing bids give you enough information to evaluate scope, not just price.
Why These Questions Matter Before You Sign
Hiring a general contractor is one of the most consequential decisions a homeowner can make. A qualified professional can transform a renovation into a smooth, well-managed process. The wrong hire can leave you with unfinished work, unexpected costs, and legal headaches that outlast the project itself.
The good news is that most problems are preventable — and they're prevented in the conversation phase, before a contract is signed and a deposit is paid. This checklist walks you through the questions that experienced homeowners, inspectors, and renovation veterans consistently say they wish they had asked earlier.
Before diving into specific questions, it helps to understand the broader landscape of a major project. See our pre-renovation planning checklist for scope and permit considerations that set the stage for contractor conversations. And once you have bids in hand, our guide to reading a contractor bid will help you decode every line item before agreeing to anything.
Credentials and Legal Standing
Project Experience and References
Contracts, Bids, and Scope
Payment Schedule
Permits and Inspections
Timeline and Communication
How to Use This Checklist
Treat this as a working document, not a memory test. Print it out or pull it up on your phone before each contractor interview. Not every question will apply equally to every project — a bathroom refresh has different stakes than a full kitchen gut or an addition — but the licensing, insurance, and payment questions apply universally.
State contractor licensing board website
Verify a contractor's license status, license type, and any disciplinary history directly with your state's official licensing authority.
Certificate of insurance (COI)
A document provided by the contractor's insurer confirming current coverage — request this directly from their insurance agent, not just from the contractor.
Printed or digital copy of this checklist
Use during each contractor interview to ensure you cover every question consistently across candidates.
Blank contract review notebook or app
Record contractor responses, bid discrepancies, and follow-up questions during and after each interview.
Local building department contact information
Verify which permits are required for your specific project type and jurisdiction before finalizing your contract.
When you collect bids, aim for at least three. This isn't primarily about finding the lowest number; it's about having enough information to identify outliers — both suspiciously low bids that may signal cut corners, and unusually high ones that may lack justification. Budget planning goes hand-in-hand with this process, so our renovation budget planning guide is worth reading alongside this checklist.
Verbal Agreements Offer No Real Protection
Every commitment a contractor makes — scope, timeline, price, materials, and payment terms — must be in the written contract. Verbal promises are nearly impossible to enforce if a dispute arises. Do not sign a contract that contradicts what you were told verbally, and do not proceed if the contractor resists putting agreed terms in writing. That resistance itself is a warning sign.
Permits are a frequent flashpoint between homeowners and contractors. Skipping them saves time upfront but can create serious problems at resale, during refinancing, or if something goes wrong on the job. For a full breakdown of when permits are required and what inspectors check, see our overview of permits, inspections, and building code.
Unpermitted Work Creates Long-Term Liability
Even if your contractor suggests skipping permits to save time or money, the legal and financial risk falls on you as the homeowner. Unpermitted work can complicate home sales, void homeowner's insurance claims, and require costly demolition and rework if discovered. Always insist that required permits are obtained — and confirm they've actually been issued before work in that area begins.
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Home & Garden Editorial Team
Home & Garden Editorial Team is the collective byline for our editorial team and contributor network. Articles published under this byline or an editorial pen name are researched, written, and reviewed according to our editorial standards for clarity, consistency, and independence before publication.
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