Hiring the wrong general contractor can cost you tens of thousands in delays, poor workmanship, and unfinished projects. The difference between a reliable pro and a nightmare scenario often comes down to asking the right questions upfront. Here's what you need to know before you sign anything.
Verify Licensing and Insurance
Before anything else, confirm your contractor holds a valid general contractor license in your state—requirements vary widely, but most states require it for projects over a certain dollar threshold (typically $500–$2,500). Ask for their license number and verify it directly with your state's licensing board; don't rely on them telling you it's current.
Ask about insurance coverage. You need to see proof of:
- General liability insurance (minimum $1 million recommended for additions and major remodels)
- Workers' compensation insurance (required in most states if they have employees)
- Builder's risk insurance (covers the project itself during construction)
Request certificates of insurance and confirm they're active, not expired. If a contractor avoids this conversation or can't produce documentation within 24 hours, walk away.
Ask About Their Track Record on Projects Like Yours
A contractor who excels at kitchen remodels might struggle with structural additions. Ask specifically:
- How many projects similar in scope have they completed in the past 3–5 years?
- Can they provide at least three references from clients who had work done in the last 18 months?
- Do they have photos of completed work you can view (most will have a portfolio or social media)?
Call those references yourself. Ask how long the project took, whether the final cost matched the estimate, and how the contractor handled problems. Ask if they'd hire them again—that answer tells you everything.
Understand Their Estimating and Payment Process
Get written estimates from at least three contractors. A legitimate estimate should include:
- Detailed breakdown of labor and materials
- Timeline with start and end dates
- Specific products and brands (not vague descriptions)
- Permit costs and responsibility for obtaining them
- Payment schedule tied to completion milestones, not upfront lump sums
Red flags: Estimates that are significantly lower than others (quality suffers), requests for large down payments (more than 10–20%), or verbal estimates without written documentation.
For typical additions, expect to pay 30% at signing, 40% at mid-project completion, and 30% upon final inspection and sign-off. This protects both you and the contractor.
Ask About Permits and Inspections
Any reputable contractor handling additions or major remodels will pull permits. If they suggest skipping permits to "save money," that's a dealbreaker. Unpermitted work:
- Voids your homeowner's insurance
- Creates problems when you sell
- Exposes you to liability if someone is injured
Ask who's responsible for obtaining permits (usually the contractor), what the typical inspection timeline looks like, and how they handle inspector requests for corrections.
Clarify Communication and Problem-Solving
Construction never goes perfectly. Ask:
- How often will you communicate (daily, weekly check-ins)?
- Who's your primary point of contact if issues arise?
- What happens if the project uncovers unexpected problems (rot, foundation issues)?
- How do they handle change orders when scope changes mid-project?
Get clarification on whether change orders require your written approval before work proceeds. This prevents surprise bills.
Check for Red Flags During Your Conversation
- Reluctance to put anything in writing
- Pressure to decide immediately
- Unwillingness to provide references
- Vague timeline or budget answers
- Paying cash to avoid paperwork
Trust your gut. If a contractor makes you uncomfortable, there are others.
Putting It All Together
Once you've vetted candidates, compare them side-by-side: license status, insurance verification, reference feedback, and written estimates. If you're overwhelmed by the process, platforms like Mercoly help you compare and find trusted general contracting providers in one place, so you can focus on the work itself.
Frequently Asked Questions
Q: How much should I expect to pay for a home addition? Home additions typically run $100–$300 per square foot depending on location, materials, and complexity—so a 300-square-foot bedroom addition ranges from $30,000–$90,000. Get multiple quotes to understand your local market.
Q: What's a reasonable timeline for a kitchen remodel or addition? Small remodels (kitchen or bathroom) usually take 4–8 weeks; structural additions or whole-home remodels can run 3–6 months or longer depending on permit delays and unforeseen conditions.
Q: Should I sign a contract before the contractor pulls permits? Yes, but the contract should clearly state permit responsibility, timelines, and costs. Permits are the contractor's responsibility on most projects.
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