Essential Questions to Ask Before Hiring a Repair Contractor

Hiring the wrong contractor is one of the most reliably expensive mistakes a homeowner can make. The Federal Trade Commission estimates that home repair fraud costs consumers hundreds of millions of dollars annually — and the damage isn't always financial. Shoddy electrical work fails inspections. Unlicensed plumbers void warranties. Roofing jobs done without permits can complicate a property sale years later. The questions asked before signing anything are what separate a project that goes smoothly from one that ends in a dispute, a lien, or a hazmat situation.

None of this requires legal expertise. It requires knowing which questions cut through the noise.

Is the Contractor Licensed for This Specific Trade in This State?

Licensing requirements vary dramatically by state and by trade. Electricians, plumbers, and HVAC technicians face stricter licensing thresholds than general handymen in most jurisdictions, but the specifics depend on state law. The National Conference of State Legislatures tracks this variation — some states license at the state level, others delegate to counties or municipalities.

Asking for a license number isn't enough. The next step is verifying it through the relevant state licensing board. An expired or suspended license looks identical on a business card to a valid one. USA.gov recommends confirming license status directly with the issuing authority before any work begins.

Are They Bonded and Insured — and for How Much?

Bonding and insurance are not the same thing, and conflating them is a common homeowner error. A bond protects against incomplete or dishonest work. Liability insurance covers property damage or injuries that occur on-site. Workers' compensation coverage protects the homeowner if a worker is injured on the property — without it, that liability can fall on the property owner.

Ask for certificates of insurance, then call the insurer directly to confirm the policy is active. Coverage limits matter: a contractor doing a $40,000 kitchen renovation carrying only $100,000 in general liability coverage may be underinsured for the scope of the job (according to industry underwriting standards cited by the FTC).

Do They Have the Required EPA Certification for Older Homes?

Any home built before 1978 introduces lead paint as a potential variable. Under the EPA's Renovation, Repair and Painting (RRP) Rule, contractors disturbing more than 6 square feet of painted surface indoors — or more than 20 square feet outdoors — in pre-1978 housing must be certified in lead-safe work practices. The certification comes from the EPA or an EPA-authorized state program.

This isn't a technicality. Improper lead disturbance during a renovation is a documented health hazard, particularly for children under 6. Asking for EPA RRP certification documentation before any demo or surface work begins in an older home is a basic protective step, not an unusual demand.

Can They Provide a Written, Itemized Estimate?

A verbal quote is not a contract. An estimate scrawled on a receipt is barely better. A proper written estimate should break out labor costs, material costs, permit fees, and the project timeline as distinct line items. This level of detail does two things: it enables accurate comparison shopping across at least 3 bids (a threshold recommended by HUD), and it creates a paper trail if work quality or scope becomes disputed later.

Watch for unusually low bids. A bid that comes in 40% below the field average typically reflects one of three things: missing scope, inferior materials, or a contractor planning to renegotiate mid-project. Any of those outcomes costs more than the apparent savings.

What Does the Contract Actually Cover?

Before signing, the contract should specify the exact scope of work, the materials to be used (including brand and grade where relevant), the payment schedule, the project start and estimated completion dates, and the process for handling change orders. It should also name who is responsible for pulling permits.

Permits matter. Work done without required permits can trigger OSHA-adjacent safety concerns and may require demolition and redo at the homeowner's expense if discovered during a later sale or insurance claim. The contractor pulling permits is standard practice — a contractor who asks the homeowner to pull their own permits is, in most cases, not licensed to do so themselves.

What Do References and Complaint Records Show?

References from completed projects should be recent — within the past 18 months — and ideally involve work similar in scope to the current job. A contractor who has tiled 30 bathrooms but never managed a full kitchen renovation is a different risk profile than their portfolio might suggest.

The Better Business Bureau maintains complaint records that are publicly searchable. A contractor with 2 unresolved complaints in 3 years tells a different story than one with 2 complaints that were resolved promptly. The pattern matters as much as the count.

Cooperative extension programs affiliated with land-grant universities in 27 states also publish contractor-vetting guides tailored to regional trades and local licensing norms — a resource that often goes overlooked in favor of review platforms with weaker verification standards.

FAQ

What happens if a contractor does work without pulling the required permits?

Unpermitted work can result in fines from the local municipality, mandatory demolition of the completed work, and complications during a property sale or insurance claim. The homeowner — not the contractor — typically bears these consequences.

Is a low bid always a red flag?

Not automatically, but a bid significantly below market rate warrants scrutiny. Asking the contractor to explain where the cost difference originates is a reasonable and professional question.

How many bids should be collected before choosing a contractor?

HUD guidance recommends a minimum of 3 written bids for any significant repair or renovation project.

Does licensing in one state carry over to another?

Generally, no. Contractor licensing is state-specific, and reciprocity agreements between states are limited. Verification must be done through the state where the work is being performed.

References

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)