Before You Call a Contractor, Read This Checklist (or Risk Getting Burned)

TL;DR

• Write a one-page scope before you start calling anyone: what the job is, where it’s happening, when you need it done, and what “done” looks like.
• Verify active license status (if licensing is required where you live), and ask contractors for proof of insurance, before scheduling the work. (consumer.ftc.gov)
• Get at least three written estimates that lay out materials to be used, your timeline, and the total price—and compare them line-by-line, not just by seeing who gives you the lowest bottom line. (consumer.ftc.gov)
• Insist on a written contract that spells out start and finish dates, payment schedules, when and how change orders will be processed, warranties, and cancellation terms. (consumer.ftc.gov)
• Avoid contracts that demand full payment up front. Instead, you should pay a portion for the job on start day and again throughout the work; keep clear records. Many states have limits on how much contractors can collect as a deposit. Know the rules where you live. (consumer.ftc.gov)
• Don’t pull building permits for your contractor; do confirm what permits you’ll need with your local building department just in case. Take care that inspection sign-offs are done before you pay the contractor. (consumer.ftc.gov)

“Most horrible contractor stories don’t start with obvious horrible people in office, yelling at them from minute one. They all start with vague expectation,” “acting out of fear or ignorance,” “signing a contract in a hurry,” and “lack of paperwork.” This checklist will protect your money, your schedule, and your sanity by slowing this process down just enough to avoid rushing into another drama.

The biggest mistake homeowners make: calling people before they know what the job is. If you can’t carefully define what the job is, you can’t make an apples-to-apples comparison between bids you’ll receive—and you can’t hold a contractor to a contract later. Scammy and sloppy operators love blurry edges because it’s easier to notch up the price, short-cut corners, or say “that wasn’t included.” You’re not looking to be a master builder overnight, just an expert in defining what you’re buying.

Checklist Part 1: Prep before you call anyone (30–60 minutes)

1. Write a one page scope: rooms / areas included; what’s coming out; what’s going away; what’s getting left alone.
2. Define “Done”: “Paint includes ceilings, two coats, patched nail holes, caulk at trim, end of job”.
3. List constraints: HOA rules, quiet hours, pets, work from home hours, any dates to avoid.
4. Gather visuals: 10­–20 photos/video of site, plus inspiration photos if any.
5. Decide your decision criteria; cheapest, fastest, specific materials, warranty length, brand name, communication quality?
6. Pick a realistic target timeline, including ordering lead times (for tile, cabinets, windows etc.) and a buffer for surprises.
7. Pick a scope range, and a hard ceiling (the number you can’t exceed without stopping the project and re-approving).

Checklist Part 2: Vet the contractor (license, insurance, real-world track record)

Make sure the contractor is actually allowed to do what you are hiring them for. The FTC recommends only considering licensed and insured contractors (and confirming licensure with your state/county). (consumer.ftc.gov) NAHB also advises that professionals should be insured and able to prove it. (nahb.org)

Phone-screen questions that reveal problems early

• Who will be the day-to-day contact, and how fast do you typically respond (same day, 24 hours, etc.)?
• Do you use subcontractors for any part of this job? If yes, which trades?
• What’s your typical change-order process (written approval, pricing, schedule impact)?
• What’s your estimated start date, and what could realistically delay it (permits, inspections, materials)?
• How do you protect the home during work (dust control, floor protection, daily cleanup)?
• Can you provide a written, itemized estimate (labor/materials/allowances) and a projected completion date? (consumer.ftc.gov)

Checklist Part 3: Compare estimates without getting tricked by a “low number”

FTC recommends multiple estimates, a written estimate, and never assuming a lowest bid is the right bid—especially with a large spread between the estimates. (consumer.ftc.gov) A very low bid often results in: rushing, low-quality materials, change orders for extras with never enough money to do it right, or a disappearing contractor when the math stops working.

Checklist Part 4: The contract checklist (what must be in writing)

I love my neighbors, but some neighbors like to contractor-jump. Your house needing repairs can wipe out a contractor’s income or drain your finances. The FTC explains that contract requirements vary by state; using a written contract is another way to avoid potential financial disputes; it also recommends making sure that the contractor gives its identifying information, start and completion dates, and promises about scope and cost. (consumer.ftc.gov) City websites (to take one example, NYC) stress the importance of having signed and written contracts, and what information such a contract must contain: details about the project, a payment schedule, and warranties. (nyc.gov). Specific checklist items include:

• The name of the contractor or business, full address, phone number, and license number (if applicable)
• Detailed list of work to be provided, with exclusions stated (not inferred).
• Detailed list of materials, finishes, and model numbers when necessary. Or allowances for substitution.
• Start date and date for “substantial completion.” (consumer.ftc.gov). Milestones to clarify what “completion” means.
• A fair and reasonable payment schedule throughout the job, tied to specified milestones (not positive feelings about your building team).
• Change-order process: how do I request someone put the hammer down and do some work I didn’t see coming? Written approval : to commence, pricing, impact on other milestones
• Who gets the permits scheduled inspection. (nyc.gov)
• Cleanup/protection expectations (dumpsters, daily debris, floor protection, site security).
• Warranty/guarantee terms (what’s covered, for how long, and how to request service). (nyc.gov)
• Cancellation rights/notice if your jurisdiction requires it (and never sign with blank spaces). (consumer.ftc.gov)

Checklist Part 5: Deposits, payments, and lien protection (where people lose the most money)

Two truths can exist at the same time: legitimate contractors may need a deposit to schedule work and order materials, and paying too much too soon is one of the most common ways homeowners get burned. The FTC advises not paying the full amount up front and notes some states limit how much can be requested as a down payment. (consumer.ftc.gov) State/local guidance may give concrete caps (for example, NYC advises no more than 25% upfront). (nyc.gov)

Also: even if you pay your general contractor, subcontractors/suppliers may have lien rights if they are not paid—depending on your state. Texas warns that homeowners can be responsible if subs/suppliers aren’t paid and the property can be subject to a lien. (texasattorneygeneral.gov) California’s CSLB explains that mechanics liens can create serious consequences, including title issues and potential foreclosure actions, and recommends safeguards like joint checks and lien releases. (web.cslb.ca.gov) Minnesota’s contractor guide describes ways lien waivers and required notices can help prevent homeowners from paying twice. (dli.mn.gov)

1. Use a milestone payment schedule: deposit (if any) → progress payments after defined milestones → final payment after punch list and required inspections are complete.
2. Never pay the full amount before the work is done and you’re satisfied. (consumer.ftc.gov)
3. Pay in a traceable way (check, credit card where feasible, bank bill pay) and keep copies of every payment and invoice. (nyc.gov)
4. If your project uses subcontractors/suppliers, ask how they’ll be paid and consider lien protection tools (for example, joint checks or lien releases/waivers where appropriate). (web.cslb.ca.gov)
5. Hold the last payment until the punch list is completed and you’ve received any agreed warranty info, manuals, and receipts.

Checklist Part 6: Permits and inspections (don’t let this become your problem later)

Permits are a common scam pressure point. The FTC lists “asking you to get any required building permits” as a red flag tactic. (consumer.ftc.gov) Consumer guidance (for example, NYC) also states your contractor should secure required permits and warns you may face fines if work starts without them. (nyc.gov) NAHB similarly flags it when a contractor tells the homeowner to obtain permits. (nahb.org)

• Call your local building department (or check its website) and ask: “Does this scope require a permit? What inspections should I expect?”
• Require permit numbers in writing once pulled (and keep copies of signed inspection results).
• Do not let work proceed on “we never pull permits for this” if your local authority says otherwise.
• If you are the permit holder (sometimes allowed in some areas for owner-builders), understand you may take on additional responsibility—ask your building department what that means before agreeing.

Checklist Part 7: Manage the project so quality doesn’t slide (without micromanaging)

Most “bad contractor” outcomes are really “bad project controls” outcomes: decisions that aren’t clear, changes that aren’t documented, schedule slips that happen silently. You don’t need to hover—you need a paper trail and regular checkpoints.

1. Have a kickoff meeting (30 minutes): confirm scope, material selections, protection plan, work hours, and where tools/materials will be stored.
2. Agree on update cadence: for example, a quick text every day plus a walkthrough weekly.
3. Document everything: keep a single folder for contract, change orders, permit docs, inspection sign-offs, invoices, and photos.
4. Use written change orders every time: scope, cost, and added days—approved before work begins. (nyc.gov)
5. Do a punch list walkthrough before final payment: write down remaining items, set due dates, and re-walk when their time is up.
6. Store warranty info and maintenance instructions (paint codes, grout sealer schedule, filter sizes, appliance manuals) so you’re not guessing down the road.

Fast red-flag checklist: hang up, walk away, or slow everything down

• They show up uninvited saying they were “in the area,” especially after a storm or disaster. (consumer.ftc.gov)
• They claim they have “leftover materials” from another job. (consumer.ftc.gov)
• They pressure you to decide immediately or say the price is only good “today.” (consumer.ftc.gov)
• They ask you to pay everything up front, insist on cash only, or want payment in full before starting. (consumer.ftc.gov)
• They ask you to pull permits, or they won’t put permit responsibility in writing. (consumer.ftc.gov)
• They won’t provide a written estimate or written contract. (consumer.ftc.gov)
• They can’t provide reachable, recent references. (nahb.org)
• They offer to arrange financing through a lender they “know,” or rush you through paperwork. (consumer.ftc.gov)
• A lead platform match is used as “proof” they’re vetted. (Still do your own verification; the FTC has taken action over deceptive marketing in the home services lead space.) (ftc.gov)

If you suspect a scam, here’s what to do today (a practical action plan)

1. Halt additional payments until you have clarity in writing on scope, timeline, and the exact deliverables required to progress to the next milestone.
2. Create a record: save any texts and emails, take date-stamped photos, and write a little about what happened while it is still fresh.
3. Follow up a verbal conversation with a written message. The FTC also recommends following phone conversations with a letter sent by certified mail as a way to document the issue. (consumer.ftc.gov) Try dealing with the contractor first, then consider seeking help from people like your state attorney general or local consumer protection office and local home builders association. (web.cslb.ca.gov)
4. Report suspected fraud to the FTC at ReportFraud.ftc.gov. (consumer.ftc.gov)
5. If the U.S. Mail was used as part of the scam, consider reporting it to the U.S. Postal Inspection Service. (consumer.ftc.gov)

FAQ

Printable mini-checklist (save this before you make the first call)

If you follow the checklist above, you won’t just “avoid scams.” You’ll also hire better contractors, get clearer and more apples-to-apples bids, and wrap things up with paperwork that protects both sides if something goes sideways.