By the time most homeowners realize they hired the wrong contractor, they've already handed over a deposit. The work has stalled, calls go unanswered, and the dispute resolution process is slow. This guide walks through eight questions to ask a contractor before hiring, drawn from consumer protection guidance published by the FTC and multiple state attorneys general, so that the conversation happens before anyone signs anything.
These aren't soft screening questions. Each one is designed to verify something concrete: that the contractor is licensed, insured, experienced with comparable work, and willing to put every commitment in writing. A contractor who's done this professionally can answer all eight without hesitation.
One prerequisite before the first interview: have at least three candidates lined up with written estimates in hand. The New York AG specifies getting written estimates from each. The lowest estimate is not automatically the best one. The North Dakota AG warns that unusually low bids can reflect corner-cutting, not efficiency.
How to use these questions in a contractor interview
The eight questions below work best as a structured process. Run through them in order with each candidate and take notes using the prompts at the end of each section. The goal isn't to catch anyone in a lie; it's to create a paper trail of commitments you can hold a contractor to later.
A few practical rules before you start:
Verify independently. Don't take a contractor's word on license status or insurance coverage. Look up both through your state licensing board and request current policy documentation before the interview goes further.
Compare across bids. When you have three completed interviews, compare the written estimates line by line, not just the bottom number. Scope, materials, and timeline terms matter as much as cost.
Call the references. Collecting a reference list is easy; following up is where most homeowners leave value on the table. Two calls per candidate minimum.
Check permit requirements yourself. Before any interview, contact your local building department to confirm what your project requires. This prevents a contractor from claiming no permit is needed when one is, as the New York AG advises.
Once you've done that groundwork, the interviews themselves go faster, and you'll know what an evasive answer looks like.
Questions 1–2 (Credentials): are you licensed, registered, and insured, and can you prove it right now?
This is the filter. Credentials that can't be verified on the spot don't count.
Question 1: Are you licensed and registered for this type of work in this state?
Licensing thresholds vary, but the obligation runs consistently across states. In Arkansas, any home improvement work over $2,000 requires the contractor to be licensed and bonded; homeowners can call the state board directly to check license status and review filed complaints. North Dakota's threshold is $4,000, with out-of-area contractors also required to hold a Transient Merchant License. Look up your state's rules before the first call.
The license number should appear on any written contract. If a contractor can't provide one immediately, verify nothing further until they can.
What a solid answer looks like: The contractor provides a license number on the spot. Verify it independently through your state licensing board before the process goes any further.
Question 2: Are you fully insured, and will you provide proof of current coverage?
This isn't just the contractor's concern. If a worker is injured on your property and the contractor carries no coverage, liability can fall on the homeowner, as the New York AG makes clear. The Rhode Island CRLB lists refusal to show proof of registration and insurance as a primary disqualifying red flag.
What a solid answer looks like: The contractor names their insurance carrier and provides a current policy number for both general liability and workers' compensation.
Stop here if: The contractor hesitates, deflects, or suggests you simply trust their word. No credentials, no further conversation.
Your notes for Q1–Q2: License number: ___ / State board verified: Y/N / Insurance carrier: ___ / Policy current: Y/N
Once the paperwork checks out, the next question is whether they've done your kind of job before.
Questions 3–4 (Qualifications): have you done work like mine, and can I speak to someone you did it for?
Relevant experience is not the same as years in business. References only matter if you actually call them.
Question 3: Have you completed projects similar in size and scope to mine?
Experience with comparable work is the meaningful filter. The Rhode Island CRLB specifically advises confirming that a contractor has done work comparable in scale and type to your project before moving forward. Ask for specifics: what was the project, how large was it, what materials were involved? Vague answers here are a signal, not a minor omission.
What a solid answer looks like: The contractor describes two or three comparable projects by scope, not just general trade history.
Question 4: Can you give me references I can contact directly, people who hired you for similar work?
Collecting a reference list is standard. Actually calling those references is where most homeowners leave value on the table. The New York AG is explicit: speak directly to former customers, not just glance at a list. When you call, ask whether the job finished on time, whether the final cost matched the estimate, how the contractor handled problems when they came up, and whether they'd hire them again.
What a solid answer looks like: The contractor provides two or three reachable references who can speak to a comparable job, not just satisfied customers from unrelated work.
Stop here if: References are vague, unavailable, or clearly unrelated to your project. Any contractor who has done the work you're asking for has no reason to be evasive about it.
Your notes for Q3–Q4: Similar projects described: Y/N / References provided: ___ / References contacted: Y/N / Red flags from calls: ___
Verified credentials and relevant experience narrow the field. The next two questions separate contractors who manage projects from those who just do the work.
Questions 5–6 (Timeline and permits): what are the exact dates, and who handles the paperwork?
Vague timelines are not commitments. Permit avoidance is a documented scam signal.
Question 5: What are the specific start and completion dates for this project?
Dates belong in writing, not in general conversation. Contracts must include both a start date and a target completion date. "We'll get to it soon" is not a schedule.
If the project runs in phases, ask for a milestone schedule with dates attached to each one. The written contract should reflect all of it.
What a solid answer looks like: Specific calendar dates, or a clear milestone schedule, with stated willingness to put those dates in writing.
Question 6: Who is responsible for pulling permits and scheduling inspections?
The FTC identifies asking homeowners to pull their own permits as a tactic used by scammers, and the North Dakota AG recommends that permit responsibility be explicitly assigned in the written contract. A contractor who suggests permits are optional or the homeowner's responsibility is a major red flag; verify your project's permit requirements directly with your local building department before drawing any conclusions.
What a solid answer looks like: The contractor states clearly that they handle permit applications as part of the job. No hedging, no suggestion that it falls to the homeowner.
Stop here if: Any contractor suggests permits are optional, unnecessary, or your responsibility to obtain. Verify with your local building department and proceed with caution.
Your notes for Q5–Q6: Start date: ___ / Completion date: ___ / Permits required (per local building dept): ___ / Contractor pulls permits: Y/N
Questions 7–8 (Money and the contract): what are your payment terms, and what goes into writing?
Payment structure and contract gaps are where renovation disputes most commonly originate. These two questions deserve the most careful attention.
Question 7: How do you structure payments, and what is your deposit requirement?
Never pay the full project cost upfront. The FTC advises withholding final payment until work is complete and satisfactory, and the Arkansas AG reinforces the same standard. That protection only works if you don't hand it over early.
Deposit size is a legitimate screening point. While deposit caps aren't universal, the Rhode Island CRLB recommends 10–30% of total project cost as a practical guideline even where no legal cap exists. A contractor demanding more than half upfront, especially in cash, matches the high-risk payment patterns identified by both the FTC and the North Dakota AG.
One additional watch point: if a contractor offers to arrange financing through a lender they recommend, compare terms independently before agreeing to anything. The FTC specifically cautions against contractor-arranged loans without independent comparison shopping.
What a solid answer looks like: A reasonable deposit tied to materials or project kickoff, milestone-based progress payments with clear triggers, and final payment held until completion. All of it in writing.
Question 8: Walk me through exactly what will be in the written contract.
A contractor is bound only by what appears in the signed document. Every verbal promise made during the interview, however specific, is unenforceable unless it's written into the contract, as the New York AG makes clear. Contract requirements vary by state, but the FTC recommends demanding a written agreement regardless of whether your state legally requires one. Rhode Island law mandates a written contract for any job over $1,000.
What the contract must include:
Full scope of work with specific materials type, grade, and quantity
Start and completion dates, or a milestone schedule
Payment schedule tied to project milestones
Warranty or guarantee terms for labor and materials
A change-order clause requiring your written approval before any scope or cost change takes effect
The contractor's name, address, phone number, and license number
Names and license numbers of any subcontractors, and how they will be paid
A written statement of your right to cancel within three business days, if the contract was signed at your home or at any location other than the contractor's permanent place of business
No blank spaces left unfilled at signing
What a solid answer looks like: The contractor can describe all of the above without prompting. Any contractor who has done this work professionally has answered this question before.
Stop here if: There is any resistance to a detailed written contract, any suggestion that the written version is "just a formality," or any contract presented with blank fields. Do not sign an incomplete document.
Your notes for Q7–Q8: Deposit amount requested: ___ / Payment schedule tied to milestones: Y/N / Contract reviewed in full: Y/N / Blanks at signing: Y/N / Cancellation clause present: Y/N
Red flags that should end the process regardless of price
These behaviors appear across multiple independent government sources because they reflect real, recurring patterns.
Each one below is disqualifying on its own. No bid is low enough to justify continuing past them:
Unsolicited door-to-door approach, or a claim of having leftover materials from a nearby job. The North Dakota AG documents a specific asphalt-paving variant: a traveling crew offers a low-price deal based on surplus materials, collects cash payment, and is gone before the inferior work fails. The FTC identifies the same pattern.
Pressure for an immediate decision, a "limited-time" offer, or a "model home" discount
Cash-only payment, or demand for full payment before work begins
Refusal to provide a license number, proof of insurance, or a written contract
Asking the homeowner to pull permits, or claiming permits are unnecessary
Contractor hiring checklist: from shortlist to signed contract
The sequence below pulls the entire process into a single step-by-step reference.
Identify at least three candidates and check their BBB accreditation status, per the New York AG.
Verify license and insurance independently before the interview through your state licensing board and by requesting current policy documentation.
Confirm what permits your project requires with your local building department.
Conduct the interview using all eight questions and fill in the note-taking prompts.
Call at least two references per candidate. Ask specifically about timeline, cost accuracy, and how the contractor handled problems.
Compare written estimates line by line, not just the total. Scope, materials, and timeline terms all affect value.
Sign only a complete contract: no blank fields, no verbal side agreements, payment schedule tied to milestones.
Holding the last payment until work is complete and meets expectations is one of the few concrete protections a homeowner controls throughout the project.
If a problem arises after work begins and the contractor won't address it, escalate in order: attempt direct resolution first. Follow any phone call with a letter sent by certified mail and request a return receipt, so there's proof of delivery. If direct resolution fails, contact your state attorney general or local consumer protection office. Formal complaint pathways are ideal for exactly this situation.
These questions aren't adversarial. What they actually do is force a contractor to document how they work before a single dollar changes hands. That's the whole point.
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