Hiring the wrong general contractor can turn a straightforward renovation into a months-long nightmare. Knowing exactly what to ask — and what to walk away from — puts you in control before a single nail is driven.
Start With Credentials and Licensing
Every state has different licensing requirements for general contractors, but you should always verify that any contractor you're considering holds a valid license in your state. Ask for the license number and look it up directly on your state contractor board's website — don't just take their word for it.
Beyond licensing, confirm they carry two types of insurance:
- General liability insurance (at least $1 million per occurrence is standard)
- Workers' compensation insurance (covers their crew if someone gets injured on your property)
If a contractor hesitates to provide proof of either, move on immediately.
Questions Worth Asking Every Candidate
A good contractor will welcome detailed questions. A bad one will dodge them. Use these as your baseline:
- How long have you been in business? Look for at least 3–5 years of operating history under the same business name.
- Do you have experience with this type of project? A contractor who specializes in kitchen remodels may not be the right fit for a full home addition.
- Who are your subcontractors? General contractors often hire out electrical, plumbing, and HVAC work. Ask who those subs are and whether they're licensed too.
- What does your payment schedule look like? A standard structure is roughly 10–15% upfront, milestone-based draws during construction, and the final 10% held until completion. Never pay more than 30% before work begins.
- Can you provide a detailed written estimate? Line-item bids make it easier to compare contractors and spot inflated costs.
- What's the project timeline, and how do you handle delays? Get the projected start and end date in writing.
- Do you pull the necessary permits? If a contractor suggests skipping permits to save money, that's a serious red flag — not a favor.
How to Vet References and Reviews
References aren't formalities — treat them like job interviews. When you call past clients, ask:
- Did the project finish on time and on budget?
- Were there surprise costs, and how were they handled?
- How did the contractor communicate throughout the job?
- Would you hire them again?
Online reviews on Google, Houzz, and the Better Business Bureau can supplement references, but focus on patterns rather than individual one-star outliers. A contractor with 50 reviews averaging 4.5 stars is generally more reliable than one with three glowing testimonials.
You can use Mercoly to compare vetted general contractors side by side, making it much easier to evaluate credentials, specialties, and reviews in one place rather than hunting across a dozen websites.
Red Flags That Should Stop You Cold
Even experienced homeowners get burned because they ignore early warning signs. Watch out for:
- Unusually low bids — If one bid comes in 30–40% below the others, it often signals cut corners, low-quality materials, or a contractor who will hit you with change orders later.
- Cash-only requests — Legitimate contractors accept checks and sometimes credit cards. Cash-only arrangements make disputes nearly impossible to resolve.
- No physical business address — A contractor who only operates from a P.O. box or personal cell number is harder to track down if something goes wrong.
- Pressure to sign immediately — Quality contractors have steady work. Anyone pushing you to sign a contract on the spot is using a sales tactic, not building a relationship.
- Vague contracts — A contract should specify materials, brand names, quantities, start and end dates, payment schedule, and what happens in a dispute. If it's two paragraphs, it's not enough.
Get Everything in Writing
A verbal agreement is worth nothing when a dispute arises. Your contract should include:
- Full project scope and specifications
- Materials list with brand, model, and grade where applicable
- Total cost and payment schedule
- Start date, estimated completion date, and delay provisions
- Warranty terms (one year on labor is typical; materials vary by manufacturer)
- A clause outlining the process for change orders
Change orders — modifications to the original scope — should always require your written approval before any additional work begins. This one habit alone can save you thousands.
The Bottom Line
Learning how to hire a general contractor comes down to doing the legwork upfront: verifying licenses, asking hard questions, checking references, and insisting on a detailed written contract. The time you invest before signing protects you far more than any warranty after the fact.
Start comparing trusted general contractors in your area today and get your project off to the right foundation.