What "checking a contractor" means
Checking a contractor means looking up their background, licenses, and past work before you sign a contract or hand over money. You are looking for three things: whether they are legally licensed to do the work, whether they have been sued or had complaints filed against them, and whether previous customers had good experiences. This takes a few hours and can save you thousands of dollars and months of frustration.
A contractor is anyone you hire to do work on your home — plumbing, roofing, electrical work, renovations, painting. Some states require licenses for certain trades; others do not. Some contractors are bonded (meaning an insurance company backs their work); many are not. Checking means finding out which category your contractor falls into, and whether their history suggests they will finish the job and do it right.
Key Takeaways
- Your state's licensing board website lists which trades require licenses in your area and whether a specific contractor holds one.
- The Better Business Bureau, Google Reviews, and Yelp show complaints and ratings, but you should also ask the contractor directly for references and call them.
- Search the contractor's name in your county court records to see if they have been sued by customers or have unpaid judgments against them.
- Ask whether the contractor is bonded and insured, and contact their insurance company to verify the policy is current before work begins.
- Get at least three written estimates that break down labor and materials separately, so you can compare what each contractor is actually offering.
Check your state's licensing board
Start by finding your state's licensing board or contractor registry. Search "[your state] contractor license board" or "[your state] licensing board [trade name]" — for example, "California contractor license board" or "Texas plumbing license board." Each state runs this differently. Some have one board for all trades; others have separate boards for electrical, plumbing, HVAC, and general contracting.
On the board's website, search for the contractor's name or license number. The results will tell you whether they hold an active license, whether the license is in good standing, and sometimes whether complaints have been filed. If the contractor claims to be licensed and you cannot find them, that is a red flag. If their license expired or was suspended, do not hire them for that trade.
Some states also list whether a contractor is bonded. A bond is insurance that protects you if the contractor does not finish the job or does shoddy work — you can file a claim against the bond instead of suing the contractor directly. Not all states require bonds, and not all contractors carry them, but it is a useful safety net if it is available.
Search for lawsuits and complaints
Go to your county courthouse website and search the civil court records for the contractor's name. You are looking for lawsuits where the contractor was sued by customers, or where the contractor sued someone and lost. Many county courts let you search online for free; some charge a small fee. If you find a judgment against the contractor, that means a judge ruled in the customer's favor — a sign the contractor did not finish work, did not pay suppliers, or did poor work.
Also check the Better Business Bureau (bbb.org). Search for the contractor's business name and location. The BBB shows complaints filed by customers, how the contractor responded, and a letter grade. A low grade or many unresolved complaints is a warning sign. Keep in mind that unhappy customers are more likely to leave reviews than satisfied ones, so a few complaints does not automatically mean the contractor is bad — but a pattern of the same complaint (missed important date, incomplete work, poor quality) is meaningful.
Google Reviews, Yelp, and Angie's List also carry contractor reviews. Read the one-star and five-star reviews both. One-star reviews that mention specific problems (the contractor left the job halfway through, the work failed within months, they overcharged) are more useful than vague complaints. Similarly, five-star reviews that describe the actual work done are more credible than generic praise.
Ask for references and call them
Request a list of at least three recent customers the contractor has worked for. Ask for jobs completed in the last year or two, not jobs from five years ago. When you call, ask specific questions: Did the contractor show up on time? Did they finish when they said they would? Was the work done correctly, or did you have to ask them to fix things? Would you hire them again?
If the contractor refuses to give references, or if you call and the references do not answer or say they do not remember the work, that is suspicious. A contractor with solid work should have customers willing to vouch for them. If a reference says the contractor did good work but was slow or messy, that tells you something useful about their style — you can decide whether that matters to you.
Ask references whether the contractor was insured. If someone was injured on the job or property was damaged, the contractor's insurance should have covered it. If the contractor was not insured and something went wrong, the reference had to pay out of pocket or sue.
Verify insurance and bonding
Before you sign anything, ask the contractor for proof of current liability insurance and workers' compensation insurance. Liability insurance covers damage the contractor causes to your home or property. Workers' compensation covers medical bills if one of their employees is injured on your job. Most states require workers' comp for any contractor with employees.
Ask for the name of their insurance company and policy number. Then contact the insurance company directly to confirm the policy is active and covers the type of work you are hiring them for. Do not rely on a photocopy the contractor gives you — insurance lapses, and you need to know it is current before work starts. If the contractor cannot or will not provide proof of insurance, do not hire them.
If the contractor is bonded, get the name of the bonding company and the bond number. Verify it the same way. A bond protects you if the contractor abandons the job or does not pay suppliers — you can file a claim and get your money back without going to court.
Compare written estimates
Get written estimates from at least three contractors. Each estimate should break down the cost of labor and materials separately, list what work is included, and say when the work will start and finish. If one estimate is much lower than the others, ask why. Maybe that contractor found a cheaper way to do the work, or maybe they are cutting corners or will pressure you to add costs later.
A good estimate also lists what happens if the job takes longer than expected, whether the contractor charges for changes you request, and what happens if materials cost more than estimated. If an estimate is vague (just a total price with no breakdown), ask for more detail before you decide.
Do not choose based on price alone. A contractor who is licensed, insured, bonded, has good references, and has no lawsuits against them is worth paying more than someone who is cheap but has red flags. The cheapest option often costs the most in the end.
Red flags that mean do not hire
Walk away if the contractor asks for full payment upfront. Standard practice is to pay a deposit (usually 10 to 30 percent) when you sign the contract, more as work progresses, and the final payment when the job is done. If someone wants all the money before they start, they may not finish or may disappear.
Also walk away if the contractor has no license when one is required in your state, cannot provide proof of insurance, refuses to give references, or has multiple unresolved complaints or lawsuits. If they pressure you to decide quickly or say the price is only good today, that is a sales tactic, not a reason to rush. A good contractor will still be available next week.
If the contractor asks you to pull a permit yourself, or says they will handle the permit but you never see paperwork, that is a problem. Permits exist to make sure work meets building codes and is inspected. Skipping permits can cause problems when you sell the house or file an insurance claim. A legitimate contractor will handle permits or explain clearly why they are not needed for your specific job.
Frequently Asked Questions
What if I cannot find the contractor on the state licensing board?
Call the licensing board directly and ask whether the contractor is required to be licensed for the work you need done. Some trades do not require licenses in all states. If a license is required and the contractor does not have one, do not hire them — they are breaking the law, and you have no recourse if something goes wrong.
How much weight should I give to online reviews?
Reviews are useful for spotting patterns — if ten people say the contractor never showed up, that is meaningful. But one bad review from someone who may have had unrealistic expectations is less useful. Read recent reviews more carefully than old ones, and look for specific complaints about the type of work you need done.
Can I hire a contractor without a license if they are cheaper?
If a license is required in your state for that trade, hiring an unlicensed contractor is illegal and leaves you unprotected. If they damage your home or do poor work, you have no licensing board to complain to and no bond to claim against. The savings are not worth the risk.
What should I do if I find a lawsuit against the contractor?
Look at what the lawsuit was about. A single lawsuit from years ago may not mean much — contractors can be sued for reasons outside their control. But multiple lawsuits, or a recent judgment where the contractor lost, suggests a pattern of problems. Ask the contractor about it directly and listen to their explanation.
Do I need to check a contractor if they come recommended by a friend?
A personal recommendation is valuable, but still check. Your friend's experience may not match yours — they may have had different expectations or a different type of job. Checking takes a few hours and can prevent expensive mistakes, so it is worth doing even for a recommended contractor.