How to vet a contractor without a spreadsheet

You do not need a spreadsheet to hire a contractor. You need three checks, one honest conversation, and a contract that says what everyone agreed to. The checks are not complicated: a license, insurance, and proof that the company has done this kind of work nearby. The conversation tells you how the company handles problems. The contract is what you have left when the job is half finished and the person who answered the phone is no longer returning calls.

Much contractor trouble is visible before the first payment. It is just easier to see when you know where to look.

Check one: the license

Ask for the license number and the legal name it is issued to. Then look it up yourself. Many states have a board or registry for at least some trades, and many cities and counties license contractors separately. A number on a truck door is advertising. A record on a government site is verification.

On the record, check four things:

• Is the license active, or is it expired, suspended, or revoked?
• Does the name match the company and the person you are talking to?
• Does the license cover the work you are asking for? A general contractor, a roofing contractor, and a plumber may hold different licenses.
• Is there a complaint history that suggests a pattern, not just one bad job?

If the company says it is not required to hold a license for your type of work, ask the local building department to confirm that. Do not take the answer from the person who benefits from it.

Check two: the insurance

Ask for a certificate of insurance and read the dates. Then call the insurer listed on the certificate and ask whether the policy is current. A certificate can be old, altered, or issued for a policy that has since lapsed. The call takes a few minutes and is worth it.

You are looking for two kinds of coverage:

• General liability, which covers damage to your property or someone else's if the work causes it.
• Workers' compensation, which covers the people working on your house if they are injured.

If the company says every worker is an independent contractor, ask who is responsible if one of them is hurt on your property. The answer should be clear, not a shrug. Ask whether the subcontractors carry their own coverage and whether the company collects certificates from them.

This is also a good time to ask for a written contract. If the company cannot produce a certificate, that is not a reason to argue. It is a reason to keep looking.

Check three: recent local work

Ask for three recent jobs in your area, ideally jobs similar to yours. Ask for a phone number or an address you can verify, not just a photo on a website. Then call the references and ask specific questions:

• What was the job, and how long did it take?
• Did the crew show up when they said they would?
• How did they handle the inevitable surprise?
• Was the final bill close to the estimate?
• Would you use them again, and why?

The last question matters more than the score. Anyone can have a good job. You want to know how the company behaves when something goes wrong, because something usually does.

If the contractor cannot provide local references, ask why. A new company may have a good explanation. A company that has worked in your town for years and cannot name a recent customer is a different problem.

The conversation that tells you the most

The references give you history. The conversation gives you a preview of how the job will go. Ask these questions in person or on the phone, and listen for specifics.

Who will be on site?

Ask for the name of the person who will run the job and whether that person is an employee or a subcontractor. Ask how many crews the company runs and who supervises them. A salesperson who disappears after the deposit is a common story, and it is preventable with one question.

Who pulls the permit?

The answer should be the contractor, in most cases. A permit is a public record, and it triggers inspections at the stages that matter. Ask for the permit number when the work starts and confirm with the building department that it is open. At the end, ask for the final inspection to be closed out.

A contractor who suggests skipping the permit to save time is asking you to carry the risk. That risk shows up when you sell the house, when an insurer asks about the work, or when a later contractor opens the wall.

How are changes handled?

Every job has surprises. The question is whether the surprise becomes a conversation or a bill. Ask for the change-order process in writing: who can approve a change, how the price is set, and whether work stops until you sign.

What is not included?

Ask for the exclusions by name. Drywall repair, painting, landscaping, hauling, permit fees, and temporary heat are commonly separate. A contract that lists exclusions is more trustworthy than one that implies everything is covered.

What do you need from me?

Access, parking, power, water, a place to store materials, and a decision schedule. A contractor who asks these questions early is planning the job. One who does not is planning to improvise.

The paper trail

A written contract should include the scope, the materials, the schedule, the payment terms, the change-order process, the warranty, and who is responsible for permits and cleanup. Read it before you sign, and ask for anything unclear to be added in plain language.

A few terms deserve special attention:

• Payment schedule. Never pay the full job up front. Progress payments should be tied to completed milestones, and the final payment should come after the punch list is done.
• Deposit. A deposit for materials is normal. A deposit that covers most of the job is not.
• Lien waivers. Ask for conditional lien waivers from the contractor and major suppliers as payments are made. They protect you from paying twice if a supplier is not paid.
• Warranty. Get the workmanship warranty in writing, including how long it lasts and who honors it. Manufacturer warranties are separate.
• Cleanup and disposal. Confirm who hauls away the old materials and who cleans the site at the end of each day.

If the contract is a one-page proposal with a price and a signature line, ask for a fuller version. If the company resists, that is information.

A simple scorecard

You can keep this in your head. You do not need a file for it.

When the job is large

For a remodeling or addition project, consider a separate home inspection at rough-in and before close-up. An inspector who works for you, not the contractor, can catch problems while they are still cheap to fix. For a roofing or exterior job, ask whether the company will provide a manufacturer certification and what it requires.

Get two estimates for anything beyond a small repair, and compare the scope before the total. The guide on how to read a service estimate explains what the sections should contain. The guide on what to ask before you book covers the booking call.

The red flags worth taking seriously

• Pressure to sign today for a discount that will disappear.
• A request for cash, or a price that drops when you pay in cash.
• No local address, no license number, or a number that goes to a call center.
• A demand for full payment before materials arrive.
• A refusal to put the scope or the warranty in writing.
• A crew that arrives in an unmarked truck with no company name.
• A contractor who says the permit is not needed, or that the inspection will slow things down.
• A promise to "take care of" damage without involving your insurer when the damage is significant.

One of these can be explained. A pattern cannot. Trust the pattern.

The bottom line

Hire the contractor who can show you a license, a current insurance certificate, and three recent local jobs, and who is willing to put the scope and the payment terms in writing. That will not make a perfect job. It is a much better bet than a friendly handshake and a low number, and it gives you something to point to if the job goes sideways.