Home playbook · 9 tactics

9 Rules for Hiring a Contractor

The expensive mistakes happen before any work starts.

Get three itemised quotes, not three prices

An itemised quote separating materials, labour, disposal and permits is the only way to compare like with like.

Verify licence and insurance directly with the issuer

A certificate emailed by the contractor proves nothing. Verification takes one phone call.

Never pay a large deposit up front

A modest deposit for materials is normal. A majority payment before work starts is the classic pattern of loss.

Tie payments to completed milestones

Progress payments against defined stages keep leverage with you until the work is actually finished.

Insist the permit is pulled in the contractor's name

A permit in your name shifts liability for code compliance onto you.

Apply the repair cost times age test on systems

Multiply a quoted repair by the equipment age. Above roughly five thousand, replacement is usually the better use of money.

Get the warranty terms in writing before signing

Labour warranty and manufacturer warranty are different things with different durations.

Hold a retention until the snag list clears

A final percentage held back is the only reliable mechanism for getting small defects fixed.

Check for a mechanics lien risk

If a general contractor fails to pay a subcontractor, the lien can attach to your property even though you paid in full.

Put it to work

Calculators for these tactics

Home & Property

Roof Replacement & Insurance Claim Calculator

Replacement cost by material, and what a storm claim actually pays after depreciation.

Home & Property

HVAC Replacement Cost & Payback Calculator

Repair or replace, and how long a higher-efficiency unit takes to pay for itself.

Home & Property

Water Damage Restoration & Claim Calculator

Restoration cost by category and class, and what your policy is likely to pay.

Home & Property

Moving Cost Calculator

Local or long-distance, full-service or DIY, with the costs people forget.

Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.