The exact questions to ask a contractor before hiring: license and insurance checks, payment red flags, and warranty terms to get in writing.
Key takeaways
- Ask for the license number and call your state board yourself—don't just look at a card or a truck decal.
- Get certificates of insurance for general liability and workers' comp mailed or emailed directly from the contractor's insurance agent, not a photo of a document.
- A commonly cited rule of thumb: deposits over roughly one-third of the job are a red flag. Some states (California, Nevada) cap it by law at 10% of the job or $1,000, whichever is less, unless the job needs custom-ordered materials—check your own state.
- Ask who is actually doing the work—your crew or a subcontractor—and get that subcontractor's license and insurance too.
- Get the warranty on labor in writing, separate from the manufacturer's warranty on materials, before you sign anything.
- A contractor who won't answer these questions in writing, or rushes you to sign, is answering the biggest question on its own.
The questions to ask a contractor before hiring them fall into five groups: license and insurance verification, the specific scope and timeline for your job, the payment schedule, the warranty on their work, and who is actually going to be on your property doing it. Ask all five before you sign anything—not after a deposit changes hands. The Federal Trade Commission’s guidance on hiring a contractor is direct about the two biggest mistakes homeowners make: skipping license and insurance verification, and paying too much up front. This page is the proactive checklist—the questions you ask before you sign a contract. If you’re already dealing with a contractor who’s missed deadlines, gone silent, or done bad work, that’s a different problem with its own warning signs, not a pre-hire question list. Start with the warranties and costs hub for the rest of this cluster, including what a home warranty covers and how to track appliance coverage once the job is done.
The five questions that matter most, at a glance
| Category | Ask this | Why it matters |
|---|---|---|
| License & insurance | “What’s your license number, and can I see a current certificate of insurance?” | Confirms they’re legally allowed to do the work and that you’re not liable if someone gets hurt on your property |
| Scope & timeline | “What exactly is included, what’s excluded, and what’s the start and finish date?” | Turns a verbal estimate into a document you can hold them to |
| Payment schedule | “What’s the deposit, and when are the remaining payments due?” | A deposit above roughly 10% of the job, or a schedule that’s front-loaded, is the clearest early red flag |
| Warranty on work | “What’s your warranty on labor, separate from the manufacturer’s warranty on materials?” | Materials and labor are covered differently—both need to be in writing |
| Subcontractors | “Who is actually doing the work—your employees or a subcontractor?” | Subcontractors need their own license and insurance; you need to know who’s on-site |
License and insurance verification questions
Ask these before you get a quote, not after you like one.
| Question | What to do with the answer |
|---|---|
| “What’s your contractor license number?” | Look it up yourself on your state’s licensing board website—don’t take a business card or a truck decal as proof |
| “Is the license active, and does it cover this type of work?” | Some states issue trade-specific licenses (electrical, plumbing, general); confirm the license matches your project |
| “Can you send me a certificate of insurance for general liability and workers’ compensation?” | Ask that it come directly from the contractor’s insurance agent or carrier, and call the carrier to confirm it’s current—BBB guidance says to verify coverage directly with the insurer, not just read the document |
| “What happens if a worker is injured on my property?” | Without workers’ comp coverage on the contractor’s side, you could be held liable for medical costs from an injury during the job |
| “Can I have two or three references from jobs like mine in the last year?” | Call them. Ask if the final price matched the quote and if the crew showed up on schedule |
A license confirms minimum competency and legal standing in your state; it does not guarantee insurance, workmanship, or financial stability, which is why the FTC and most state boards treat license and insurance as two separate checks, not one.
Scope and timeline questions for the specific job
A generic “yes, we can do that” is not a scope. Get the contractor to answer these in terms of your project, not a general capability pitch.
| Question | Why it’s worth asking specifically |
|---|---|
| “What exactly is included in this price, line by line?” | Vague quotes (“kitchen remodel—$25,000”) hide what’s excluded until a change order shows up |
| “What’s explicitly excluded—permits, disposal, fixtures I’m supplying?” | Exclusions are where surprise costs live; get them named, not assumed |
| “What’s the realistic start date, and what could push it back?” | Material lead times and permit approval are common, legitimate delays—ask what the contractor is already anticipating |
| “What’s the target finish date, and is that in the contract?” | A date the contractor will put in writing is a different commitment than one said out loud during the sales visit |
| “Who pulls the permit, and is that cost in the quote?” | Confirms whether permit responsibility and cost sit with you or the contractor before work starts |
| “What happens if you find something unexpected once the walls are open?” | Rot, old wiring, or asbestos-era materials change the job—ask how change orders get priced and approved before they happen |
Payment schedule questions and deposit red flags
This is where most costly contractor mistakes start—not with bad work, but with money handed over before any work exists to inspect.
| Question | What a reasonable answer looks like (2026) |
|---|---|
| “What’s the deposit, and what does it cover?” | FTC guidance says never pay the full amount upfront; a commonly cited consumer rule of thumb caps it around one-third of the job, though some states set a lower legal maximum (see below) |
| “What triggers each subsequent payment?” | Payments tied to inspected milestones (“framing complete,” “rough-in passed inspection”)—not calendar dates unrelated to progress |
| “What’s the final payment, and when is it due?” | Held until the work is complete and you’ve inspected it; never pay in full before the job is finished |
| “Is there a cap on my state’s legal maximum deposit?” | Some states set a statutory cap by law (California’s Business and Professions Code, for example, limits down payments on home improvement contracts to 10% of the contract price or $1,000, whichever is less)—check your own state contractor licensing board, since limits vary |
| “How do I pay, and is there a paper trail?” | Check or card, not cash, and get a receipt for every payment—cash-only requests are a common red flag |
Warranty-on-work questions
Materials and labor are covered by two different warranties, and homeowners frequently assume one covers both.
| Question | What to listen for |
|---|---|
| “What’s your warranty on your own labor?” | A specific length (commonly one to two years) and what it covers—not “we stand behind our work” with no term attached |
| “Is that warranty in writing, separate from the manufacturer’s warranty?” | Manufacturer warranties (on shingles, a water heater, an appliance) are registered separately and typically don’t cover installation errors |
| “What voids the labor warranty?” | DIY changes, missed maintenance, or using another company for related repairs can void it—ask what specifically applies |
| “How do I file a warranty claim if something fails?” | Get the process in writing now, not after the contractor is unreachable |
| “Who registers the manufacturer’s warranty on materials—you or me?” | Some manufacturer warranties require registration within a set window after installation to stay valid |
Subcontractor and crew questions
The person who quotes the job is not always the person who shows up to do it.
| Question | Why it matters |
|---|---|
| “Will you use subcontractors on this job, and for which parts?” | Electrical, plumbing, and specialty work are commonly subcontracted even by a general contractor you hired directly |
| “Are your subcontractors licensed and insured for their trade?” | The FTC’s guidance is explicit: verify subcontractors have current insurance and licenses too, the same as the general contractor |
| “Will the same crew be on-site the whole job, or does it rotate?” | Rotating or unfamiliar crews are harder to hold accountable for a specific mistake |
| “Who do I call if a subcontractor’s work has a problem?” | Confirm the general contractor stays responsible, rather than pointing you to the subcontractor directly |
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Frequently asked questions
What questions should I ask a contractor before hiring them?
Ask for their license number and call the state board to confirm it’s active and matches their business name. Ask for a certificate of insurance showing current general liability and workers’ compensation coverage. Ask for a written, itemized quote with a start and finish date, a payment schedule tied to completed work, who will actually perform the work (their crew or subcontractors), and what warranty covers their labor separately from the manufacturer’s warranty on materials.
How much deposit is normal for a contractor?
The FTC advises never paying the full amount upfront; a commonly cited consumer rule of thumb is a deposit no larger than roughly one-third of the job. Some states go further and cap it by law—California and Nevada, for example, limit deposits to 10% of the total job cost or $1,000, whichever is less, except when the job requires custom-made or special-order materials. Check your own state contractor licensing board for its specific cap before you agree to a larger number.
Should I ask a contractor for references?
Yes. Ask for two or three references from jobs similar in size and scope to yours, completed within the last year, and actually call them. Ask the reference whether the final price matched the quote, whether the crew showed up on schedule, and whether they’d hire the contractor again for a similar job.
What should be in a contractor’s written warranty?
A contractor’s written warranty should state how long they stand behind their own labor (commonly one to two years), what it covers, and how to make a claim if something fails. This is separate from the manufacturer’s warranty on materials like shingles, water heaters, or appliances, which is registered with the manufacturer directly. Ask for both in writing before work starts.
Is it a red flag if a contractor won’t put answers in writing?
Yes. A verbal promise about a start date, a payment schedule, or a warranty isn’t enforceable if a dispute comes up later. A contractor who is reluctant to put the scope, price, schedule, and warranty terms into a signed contract—or who pressures you to sign on the spot—is telling you something important before the job even starts.