How to vet a contractor for a $5K+ home project

Hiring a contractor for anything north of about $5,000 is one of those rare moments where a few minutes of careful questions is worth more than weeks of research. Most homeowners ask about price and timeline, sign, and then find out about everything else from a text message at 7 p.m. on a Tuesday.

Here are the nine questions that separate a smooth project from a story you tell your in-laws.

1. Are you licensed and insured in this state, and can I see proof?

Not "do you have insurance." Ask for the certificate, with the policy number, and call the broker to confirm it's active. License lookup is one Google search. Skipping this is how an injury on your property becomes a lien on your house.

2. Who will actually be doing the work?

The person you're talking to is often the salesperson, not the foreman. Find out who runs the crew, whether the work is subcontracted, and what shows up on your property on day one. If subs are doing the work, ask who's responsible for fixing it if it's wrong.

3. Who pulls the permit?

If they say "you can pull it yourself, it's cheaper," walk away. A homeowner who pulls a permit is the responsible party for code violations and any injuries on the job. The contractor pulls the permit, the contractor inspects, the contractor signs off. This is non-negotiable.

4. What is your assumption behind every line item?

An estimate isn't a quote; it's a guess based on assumptions. Ask: how many square feet of drywall are you assuming, what grade of fixture, what brand of tile, what gauge of wire. Vague estimates have one purpose: making the change-order conversation easier for the contractor.

5. What happens if conditions behind the wall are different?

Knob-and-tube wiring. A leak you didn't know about. A load-bearing wall the floor plan didn't mention. Get the contractor to write down their rate for change orders before they find anything. "We'll figure it out" is how a $12,000 project becomes a $19,000 project.

6. What's the payment schedule, and what is each payment tied to?

Payments should be tied to completed milestones, not to dates on a calendar. "50% on day one, 50% on day thirty" is a structure that benefits the contractor whether or not anything actually got done. "20% to start, 30% on rough-in inspection passed, 40% on substantial completion, 10% on punch list closed" is the structure you want.

7. What's the warranty on workmanship?

Materials have manufacturer warranties. Workmanship is what the contractor is on the hook for. One year is standard. Two is generous. "As long as I'm in business" is meaningless. Get the term in writing, with what's covered and what isn't.

8. Can I talk to two clients from projects that are at least a year old?

Recent references love their contractor, because the honeymoon is still going. References from a year or two back will tell you whether the caulk has cracked, whether the tile grout is failing, whether the contractor returned a call when something went wrong six months later. That's the answer you actually need.

9. When does this estimate expire?

Material prices move. Labor availability moves. A 30-day expiration is normal. An open-ended estimate is a contractor reserving the right to repaint the number after you've emotionally committed.

Ask these nine questions out loud. Watch the contractor's face. The good ones will be relieved you asked, because it means you're going to be a clear-headed client. The bad ones will get cagey, dismissive, or offended. That's the answer to the question you were really asking, which is: do I want this person in my house for the next six weeks?

Write down the answers. Save them next to the signed estimate. The same file you'll reach for two years later when something needs a touch-up and you're trying to remember who did the work. That's the part Holm is for, but the questions stand on their own.