30+ warning signs every homeowner should know before hiring a contractor. Knowing what to watch for — before, during, and after the job — is your best protection.
Demands large upfront cash payment
Legitimate contractors typically require 10–30% upfront to cover materials. Demands for 50–100% upfront — especially cash-only — are a classic scam setup. You lose all leverage once the money is gone.
No written contract or itemized quote
Every professional contractor provides a detailed written contract before work begins. Verbal agreements leave you with zero legal protection when disputes arise.
Can't produce license or insurance on request
Any licensed contractor in a regulated trade (HVAC, electrical, plumbing, roofing, general contractor) must be able to show proof of license and current insurance immediately upon request. Hesitation is a red flag.
High-pressure same-day decisions
'This price expires today' is a manipulation tactic. Quality contractors want you to be comfortable. Any contractor who pressures you to sign before getting other quotes is using a sales script designed to exploit urgency.
Bid is 40%+ below all others
A dramatically lower bid typically signals cut corners, inferior materials, or a plan to hit you with change orders once work begins. The lowest bid is rarely the best value.
No verifiable physical business address
Search the company name and address online. A legitimate contractor has a verifiable local business presence. A phone number plus a pickup truck is not a business.
Door-to-door solicitation after a storm
'Storm chasers' travel to disaster areas and offer to do repairs quickly before you can check references or get competing quotes. They often take deposits and disappear or do shoddy work.
No reviews, bad reviews, or suspiciously generic ones
Check Google, BBB, and Yelp. Look for reviews from real local customers mentioning specific jobs. Generic 5-star reviews with no details are often fabricated.
Asks you to sign over your insurance claim
A contractor who asks for an Assignment of Benefits (AOB) is taking control of your insurance claim away from you. This is illegal in some states and often leads to inflated claims and denied coverage.
Cannot provide references from recent similar work
Any established contractor can provide 2–3 references from local jobs completed in the last 6 months. A refusal means they either don't have satisfied customers or the references won't check out.
Sends workers without telling you
Subcontracting is normal, but you should be told who is coming to your home. Unknown workers without introduction may not be vetted, insured, or licensed — and you have no way to know.
Repeated unplanned requests for more money
A change order for genuinely unforeseen conditions (hidden rot, unexpected structural issue) is legitimate. But mid-project cash demands — especially after work stops — signal poor planning or a scam.
Works without pulling required permits
For major work (electrical panels, structural changes, new HVAC, additions), permits are legally required. Unpermitted work can void your homeowner's insurance, fail inspection, and create problems when you sell.
Goes MIA between job site visits
Long stretches with no workers on site and no explanation indicate the contractor is overbooked, underfinanced, or using your deposit on another job. Get a weekly progress communication plan in writing.
Installs different materials than what's in the contract
Compare what's being installed against the brand and specs in your written contract. Material substitutions without written consent and price adjustment are a contract breach — and often an attempt to increase margin at your expense.
Refuses to show receipts for materials
For cost-plus contracts, you have the right to see material receipts. A refusal suggests markup beyond what was agreed or materials that don't match the spec.
Work fails initial inspection
A single re-inspection is not uncommon. Repeated failures signal that the contractor is not performing work to code — which means cutting corners throughout the job, not just where inspectors look.
Cleanup is neglected throughout the job
A contractor who leaves debris, materials, and tools in hazardous disarray doesn't have control of their job site. Professional contractors maintain a clean, organized site throughout.
Threatens to stop work over payment disputes
Before suspending work over a payment dispute, a legitimate contractor contacts you professionally and attempts resolution. Immediately stopping work and threatening legal action is a manipulation tactic.
Refuses to provide lien waivers
A lien waiver from the GC and all major subcontractors confirms they've been paid for their portion of the work. Without lien waivers, subs or suppliers can place a lien on your home — even if you paid the GC in full.
Won't put their warranty in writing
Industry standard is at least a 1-year labor warranty. If a contractor won't specify warranty terms in writing before you pay the final invoice, they don't intend to stand behind their work.
Disappears before the final inspection or walkthrough
The final walkthrough is your opportunity to document deficiencies before issuing final payment. A contractor who avoids this is hoping you won't notice problems until they're gone and difficult to get back.
Asks for final payment before work is complete
Final payment should be triggered by successful completion of the punch list, passing all inspections, and your signed approval — not by the contractor's cash flow needs.
Becomes difficult to reach after final payment
If a contractor stops returning calls immediately after receiving final payment — before you've had time to identify warranty issues — you have very little recourse. This is why holding 5–10% until you've lived with the work is wise.
Leaves unpermitted work without closing out permits
A permit that was pulled but never closed out (final inspection not passed) is an open permit on your property. This appears in title searches and must be resolved before you can sell the home.
Requests payment directly to a personal account
Legitimate contractors invoice from a business entity and accept business checks or ACH. Payment to a personal Venmo, Zelle, or cash is almost impossible to recover if something goes wrong.
Won't provide an itemized breakdown of labor and materials
An itemized quote lets you verify material costs and ensures you're not paying double margins. A contractor who refuses to break it down is hiding significant markup.
Contract references a company name you can't verify
Search the exact contract entity name in your state's business registry. If it doesn't exist, you have no contract with a legal entity — making disputes virtually unresolvable.
Offers to do work 'off the books' to save on taxes
This puts you at significant risk. If a worker is injured on your property and there's no workers' comp coverage, you may be liable for their medical costs and lost wages.
Active state license — verified online
Look up the license number on your state's contractor licensing board website. Takes 2 minutes. Confirm it's active, in good standing, and not expired.
Current general liability + workers' comp insurance
Request a certificate of insurance (COI) naming you as additionally insured for the duration of the project. Call the insurer to verify the policy is active.
Detailed written contract before work begins
Covers exact scope of work, specific materials (brand, model, grade), payment schedule tied to milestones, project timeline, warranty terms, and dispute resolution.
References from recent similar local work
Ask for 2–3 references from jobs completed in the last 6 months in your area. Call them. Ask specifically about how problems and changes were handled.
Pulls all required permits without being asked
A contractor who insists on proper permits is protecting you — not adding cost. Permits ensure licensed inspectors verify the work meets safety codes.
Provides lien waivers at each payment milestone
Collected from the GC and all major subs confirming they've been paid. This is standard practice in professional construction.
Clear, professional communication throughout
Returns calls within 24 hours, shows up when scheduled, provides weekly progress updates, and gives you a named point of contact for the project.
Won't give a quote without an in-person visit
For roofing, HVAC, major plumbing, or any project involving unseen conditions, a quote given without a site visit is a guess. In-person assessment shows professionalism.
Manufacturer-certified installer
For roofing (GAF Master Elite, CertainTeed SELECT, Owens Corning Preferred) and HVAC (manufacturer certifications), independent certification means the contractor has met quality standards and training requirements.
Passes final inspection on first attempt
An experienced, code-compliant contractor passes inspections the first time because they know the requirements and perform to them consistently — not because they're hoping the inspector misses something.
Every legitimate contractor should be able to provide a contract that covers all of the following. If an item is missing, ask for it in writing before proceeding.
Full legal name and license number of the contracting entity
Business address (not just a phone number)
Proof of general liability and workers' compensation insurance
Detailed scope of work with specific materials (brand, model, grade)
Start date and estimated completion date
Payment schedule tied to completion milestones — not calendar dates
Total price including all fees, permits, and cleanup
Change order process: how changes are requested, approved, and priced
Who pulls permits and who pays permit fees
Who is responsible for obtaining inspections
Labor warranty terms (minimum 1 year in writing)
Material warranty terms (manufacturer warranties)
How disputes are resolved (mediation, arbitration, or litigation)
Lien waiver requirements at each payment milestone
Final payment trigger: completion of punch list + your written approval
Never pay more than 30% upfront
Tie your payment schedule to milestones: materials delivery, rough-in completion, substantial completion, and final punch list approval. Never pay the final installment before your punch list is complete.
Verify license and insurance yourself
Don't just take a copy of a certificate — call the insurer to verify the policy is active. Look up the license number on your state's licensing board website. Both take under 5 minutes.
Get everything in writing, always
Scope changes, material substitutions, timeline adjustments, and warranty claims all need to be documented in writing. A 'we'll sort it out' conversation you can't prove happened is worthless in a dispute.
Use FixaPros to explore contractor profiles and request estimates. Independently confirm licenses, insurance, references, and written terms before hiring.
Find Trusted Pros