Common Mistakes to Avoid When Hiring a Contractor

Nov 24, 2025

Failing to Check Credentials and Licenses

One of the most common mistakes homeowners make when hiring a contractor is neglecting to verify credentials and licenses. It's crucial to ensure that the contractor has the necessary qualifications and is legally permitted to perform the work. Checking licenses not only confirms their legitimacy but also protects you from potential liabilities.

Always ask for proof of licensing and check with local authorities if needed. Remember, a reputable contractor will have no issue providing this information.

contractor license

Overlooking Insurance Coverage

Insurance is another critical factor that should not be overlooked. Contractors should have both liability insurance and workers' compensation insurance. Liability insurance protects you in case of property damage caused by the contractor's work, while workers' compensation covers any injuries sustained by workers while on your property.

Request copies of insurance certificates and verify their validity with the insurance provider. This step is vital to avoid any legal or financial complications down the line.

Not Getting Everything in Writing

A handshake or verbal agreement is not enough when it comes to contracting work. Always get a detailed contract in writing, which includes the scope of work, timelines, payment schedules, and any other specific terms agreed upon. This ensures that both parties are clear about expectations and responsibilities.

contract signing

Ensure that any changes to the project are also documented in writing. Having everything in writing serves as a reference and can be crucial if disputes arise.

Choosing Based on Price Alone

While sticking to a budget is important, selecting a contractor based solely on the lowest bid can lead to problems. A very low bid may indicate that the contractor is cutting corners or using substandard materials. Instead, consider the overall value, which includes experience, reputation, and quality of materials.

It's advisable to obtain multiple quotes and compare them carefully. Evaluate the contractor's previous work and ask for references to ensure you're making a well-informed decision.

budget planning

Ignoring Communication Skills

Effective communication is essential for the success of any project. If a contractor is difficult to reach or doesn't respond promptly to your inquiries, it could be a red flag. Good communication ensures that the project runs smoothly and that any issues are addressed promptly.

During the initial meetings, assess how the contractor communicates and whether they listen to your concerns. A contractor who values open communication is likely to be more reliable and easier to work with.

Not Checking References and Reviews

Before making a final decision, it’s important to check references and read reviews from previous clients. This provides insight into the contractor's work ethic, reliability, and quality of work. A reputable contractor will have positive feedback and won't hesitate to provide references.

client feedback

Utilize online platforms to read reviews and ratings. This due diligence helps ensure you hire a contractor who meets your expectations and delivers on their promises.