Before You Sign With a General Contractor: Questions Worth Asking
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Key Takeaways
- Always verify a contractor's license and insurance before any work begins or contracts are signed.
- A detailed written scope of work protects both parties and reduces mid-project disputes.
- Payment schedules tied to milestones are generally safer than large upfront lump sums.
- References from recent, similar projects reveal more than online ratings alone.
- Understanding who pulls permits—and who is responsible for inspections—matters legally and financially.
Why This Conversation Matters Before You Sign
Hiring a general contractor is one of the largest financial commitments most homeowners make outside of purchasing the home itself. Yet many homeowners sign contracts under time pressure, excitement, or fatigue—only to discover mid-project that expectations were never clearly defined.
This checklist is designed to slow that process down in a productive way. Use it during or after the bid phase, before any agreement is executed. Much like reviewing paperwork carefully before a major purchase—whether that's a vehicle contract or a lease—the questions you ask upfront determine how protected you are if things go sideways.
Work through every section below. If a contractor becomes impatient or evasive with any of these questions, that reaction itself is useful information.
Licensing and Legal Standing
Insurance Verification
References and Track Record
Scope of Work and Contract Terms
Payment Structure
Tools and Documents to Have Ready
Before your contractor meeting, gather the materials below. Having these on hand lets you verify answers in real time rather than following up later—which can delay your project start and create pressure to sign before you're ready.
State Contractor License Lookup
Used to independently verify the contractor's license status, type, and any disciplinary history through your state's official licensing board.
Certificates of Insurance (COI)
Documents the contractor provides proving active general liability and workers' compensation coverage—required before signing.
Written Project Bids from Multiple Contractors
Having at least two to three itemized bids lets you compare scope, assumptions, and pricing before committing to one contractor.
Blank Change Order Template
A simple written form used to document any modifications to the agreed scope of work, pricing, or timeline once the project begins.
Local Building Department Contact
Lets you confirm which permits are required for your project and whether your contractor is authorized to pull them in your jurisdiction.
Never Pay in Full Before Work is Complete
Verbal Promises Are Not Binding
After the Meeting: What to Do Before Signing
Once you've worked through the checklist in person, take at least 24–48 hours before signing anything. Use that window to call the references provided, independently verify the license number through your state's contractor licensing board, and read the full contract—not just the summary page.
Pay particular attention to the dispute resolution clause, the change-order process, and any language about what happens if the project runs over schedule or over budget. Vague language in those sections tends to favor whichever party is more willing to argue later.
If the contract includes an arbitration clause, understand what rights that may waive before agreeing. When in doubt about legal language, a brief consultation with a real estate or construction attorney is money well spent on a large project.
Signing a contractor agreement shares some structural similarities with other high-stakes commitments—like deciding what to verify before signing a lease. The principle is the same: read carefully, ask questions, and don't let urgency replace due diligence.
Permits Protect the Homeowner, Not Just the Contractor
The content on this site is provided for informational purposes only and should not be considered a substitute for professional advice. While we strive to provide accurate and up-to-date information, we make no guarantees regarding its completeness or accuracy. Always consult a qualified professional for advice specific to your circumstances before making any decisions.
