Hiring a contractor is a trust decision backed by paperwork. The best contractor in your town can still produce a bad outcome if the scope is vague, the schedule is unrealistic or the payment plan is unbalanced. The worst one can disappear with your deposit. The difference is usually the process, not luck.
This guide is written from the client side of the table. It covers how to compare bids, what a contract should contain, and the red flags that are worth walking away from even when you are tired of waiting.
Start with the scope, not the price
Write down what you want before you call anyone: the rooms, the work, the finishes and the things that must not change. A clear scope lets contractors bid the same job. Without it, one bid includes painting and another does not, and the cheapest number is meaningless.
Ask each contractor to itemise the bid by trade and by phase. A single lump sum hides the assumptions. You want to see demolition, framing, electrical, plumbing, drywall, finishes and cleanup as separate lines, with an allowance for materials that are not yet chosen.
- Drawings or a written scope for every room.
- Itemised labour and materials.
- Clear allowances for tiles, fixtures and finishes.
- A stated schedule and a payment schedule.
- Who pulls the permits and who pays for them.
Verify before you sign
Check the licence, the insurance and the workers compensation coverage. Ask for the certificate of insurance and call the insurer to confirm it is current. If a contractor cannot produce these documents, stop. An uninsured worker injured on your property is a problem you do not want to own.
Ask for three recent references from projects similar to yours, and call them. Ask whether the contractor showed up, whether the budget held, and whether they would hire the same person again. A reference who only says "great job" is less useful than one who describes a problem and how it was solved.
A contractor who is uncomfortable with a written contract is telling you something. Believe them the first time.
What the contract must include
The contract should name the parties, describe the scope, list the materials and allowances, state the price and payment schedule, define the start and completion dates, and explain how changes are handled. It should also cover permits, insurance, cleanup, warranty and dispute resolution.
Payment should follow progress, not a calendar. A large deposit before work begins is a red flag, and a final payment before completion is another. A common structure is a modest deposit, progress payments at defined milestones, and a retention held until punch-list items are complete.
- Names, addresses and licence numbers.
- Scope and exclusions in plain language.
- Price, allowances and payment milestones.
- Start date, completion date and weather or permit delays.
- Change-order procedure.
- Warranty and cleanup terms.
Red flags worth walking away from
Be cautious with a contractor who asks for a large cash deposit, refuses to put the scope in writing, or pressures you to sign on the spot. Be cautious with a bid that is dramatically lower than the others; it usually means something is missing or will be added later as a change order.
Other warnings: no physical address, no licence number, no insurance certificate, a phone that only takes calls, and a schedule that starts tomorrow for a job that should be booked out for weeks. None of these is proof of fraud, but together they are a reason to keep looking.
Managing the job
Agree on a communication routine: a weekly update, a single point of contact, and a process for questions. Keep a shared folder with the contract, drawings, permits, receipts, change orders and photos. Visit the site regularly, but do not micromanage the trades.
When something changes, write it down before the work happens. A change order should state what is changing, the price, and the effect on the schedule. Verbal agreements are how budgets drift. A contractor who resists a written change order is a contractor who will argue about the bill later.
Before the first day
- Confirm the permit is posted and the inspection schedule is known.
- Clear the work area and protect the route.
- Agree on working hours, parking and waste removal.
- Exchange emergency contacts.
- Photograph the existing conditions.
If the project is a kitchen or a bathroom, read our budget and mistake guides before you finalise the scope: kitchen remodel budget and bathroom remodel mistakes. The better your scope, the better every bid you receive.
