Ask for these five things in writing before you sign anything. A contractor who does honest work will hand them over without flinching. A contractor who plans to cut corners will stall, dodge, or talk you out of asking. Here's the list, and here's exactly how each request separates the two.
1. A fixed total price with a payment schedule tied to milestones
Say this: "I need the total price in writing, broken into payments tied to completed stages — not dates."
A good contractor gives you something like: 10% at signing, 30% when demo is done, 30% at rough-in, 30% at final walkthrough. Each payment maps to work you can see.
A bad one wants big money up front — 40%, 50%, sometimes more — "for materials." Real suppliers extend contractors credit. A demand for half the job before the first nail goes in means your cash is funding their last job, not yours.
2. Their license number and proof of insurance
Ask: "What's your license number, and can you send a certificate of insurance?"
Then actually check it. Most states have a free contractor license lookup — search "[your state] contractor license verification." Confirm the number is active and matches the name on your contract. Call the insurance carrier listed on the certificate and confirm the policy is current.
A good contractor sends this in five minutes. A bad one says "I've been doing this 20 years, I don't need all that paperwork." Experience is not a license, and it does not pay for the ladder that goes through your window.
3. A written scope of work — including what's NOT included
Request: "Put the full scope in writing, and list anything you're specifically excluding."
The exclusions matter more than the inclusions. A good contractor writes "does not include: electrical panel upgrade, permit fees, disposal of hazardous material" — because they want no surprises either.
A bad one keeps it vague on purpose. Vague scope is how a $12,000 bathroom becomes a $19,000 bathroom through "change orders" you never saw coming.
If it isn't in the scope, it isn't in the price — and everything not in the price becomes a change order at their number, not yours.— common advice from construction attorneys
4. A lien waiver at each payment
Say: "I'll need a signed lien waiver every time I make a payment."
A lien waiver is the document that proves the contractor — and their subs and suppliers — got paid and give up the right to put a lien on your home. Without it, you can pay in full and still get a mechanic's lien from an unpaid subcontractor.
A good contractor knows exactly what you mean. A bad one acts confused or offended. This request alone tells you whether they run a real business.
5. A written warranty on labor
Ask: "What's your labor warranty, in writing?"
One year on workmanship is standard for most trades. A good contractor states it plainly and stands behind it.
A bad one says "the materials have a manufacturer warranty" — which covers the product, not their installation. If the tile cracks because they skipped the underlayment, the manufacturer owes you nothing.
The one red flag in almost every bad hire
It's this: they pressure you to pay in cash, or to move money in a way that leaves no paper trail. "I'll knock off 10% for cash." "Just Venmo the deposit." "We can skip the permit if you pay me directly."
Every one of those means no receipt, no recourse, and no protection when the work goes wrong. A contractor who won't put payment in a traceable, structured form is telling you they don't expect to earn the next payment.
The cleanest protection is escrow — your money is committed, but it only releases when the work is actually done.