How to Choose a Remodeling Contractor, Step by Step

Choose a remodeling contractor by checking three things yourself before you compare prices: an active license for the work where you live, current liability and workers' compensation insurance, and references from recent jobs like yours. Then insist on a detailed written contract, a deposit within any limit your state sets, payments tied to finished work, and a final payment held until the job passes inspection and the punch list is done.

That order matters. A great price from a contractor who fails the first three checks isn't a great price.

Where to find candidates

Start with people who remodeled recently and would hire the same company again. Tile showrooms, cabinet dealers and plumbing supply houses also see which contractors come back year after year. Online reviews help, but read them critically. The FTC suggests searching the company name with words like "scam," "review" and "complaint," and checking with your local consumer protection office and Home Builders Association for complaints.

Match the contractor to the job. A full kitchen with layout changes calls for a general contractor or design-build remodeler who manages licensed plumbers and electricians. A vanity and toilet swap may not.

KitchenBathEstimates can introduce a remodeling contractor who serves your area at no cost to you, but we don't verify licenses or insurance. The checks below are yours to do for any contractor, however you found them.

Check the license and insurance yourself

License

Look the contractor up on your state licensing board's website, or with your county or city if licensing is handled locally; the FTC recommends confirming the license with your state or county. Some states license remodelers statewide, others leave it to local governments, and trades like plumbing and electrical are often licensed separately. Search by the exact business name and license number, then confirm:

The license is active and issued to the same business name that will be on your contract.
The license classification covers the work you're hiring for.
There are no unresolved complaints or disciplinary actions.

If your home was built before 1978, also ask for the firm's EPA lead-safe certification. Federal rules require firms doing paid renovation work in those homes to be certified and use certified renovators, and you can check certification on EPA's website.

Insurance

Ask for a certificate of insurance for general liability and workers' compensation, sent to you directly by the contractor's insurance agent, with policy dates that cover your project. Call the agent if anything looks off. Workers' comp matters more than people expect: California's licensing board warns owner-builders that if uninsured workers are hurt on the job, the homeowner could be asked to pay for their injuries through a homeowner's policy or face lawsuits.

Interview, check references and compare bids

Meet at least two or three contractors at your home. Good questions to ask:

Who will be on site day to day, and which work goes to subcontractors?
Who pulls the permits? (The contractor should. The FTC lists a contractor asking you to pull permits as a sign of a scam.)
How are change orders priced and approved?
What's the realistic start date and how long will the job take?
What warranty do you give on workmanship?

Then call references from jobs finished in the last year or two that look like yours. Ask whether the job stayed on budget and schedule, how problems were handled, how clean the site was kept, and whether they'd hire the company again. If you can, see a finished kitchen or bath in person.

Get written bids for the same scope of work. The FTC advises against automatically choosing the lowest bid and suggests asking about large price differences. Our guide to comparing remodeling estimates walks through doing that line by line.

What the written contract should include

Even where your state doesn't require a written contract, ask for one. The FTC and state licensing boards recommend most of these items, and we'd insist on all of them:

The contractor's name, address, phone number and license number.
Estimated start and completion dates.
A detailed scope of work with specific products. California's licensing board suggests naming the manufacturer and model rather than writing "install kitchen cabinets."
Allowances for anything not yet chosen, with dollar amounts.
Who obtains the permits and schedules inspections.
The total price and a payment schedule.
How change orders work. Changes should be in writing, with the price, before the work is done.
Warranty terms, cleanup and debris removal.
A written notice of your right to cancel, if you signed at home.

That last item comes from the FTC's Cooling-Off Rule. For many sales made at your home, you have until midnight of the third business day after the sale to cancel for a full refund; Saturday counts as a business day. The rule doesn't cover sales completed at the seller's permanent place of business, and your state may add its own protections.

Never sign a contract with blank spaces, and make sure any verbal promises are written into it.

Deposits and payment schedules

The FTC's advice is simple: don't pay the full amount up front, and know that some states cap down payments. Examples we verified:

State	Deposit rule
California	Down payment can't exceed $1,000 or 10% of the contract price, whichever is less; later payments can't exceed the value of work performed
Massachusetts	Deposit can't exceed the greater of one-third of the contract price or the actual cost of special-order or custom materials
Maryland	Deposit can't exceed one-third of the contract price, and no payment before the contract is signed

Other states have different rules or none, so check with your state attorney general or consumer protection office.

Beyond the deposit, tie payments to milestones you can see, such as a passed rough inspection, cabinets installed, or countertops in, rather than calendar dates. Keep the final payment until the punch list is done and the permit has passed final inspection.

Ask about lien releases too. In California, for example, unpaid subcontractors and suppliers can file a mechanics lien, and the state licensing board says the homeowner is ultimately responsible for payment even after paying the contractor. It recommends collecting conditional and unconditional lien releases or paying with joint checks. Lien laws vary by state, so ask your contractor how they handle releases.

Red flags

The first five come straight from FTC guidance; the rest are just as telling:

A door-to-door pitch, "we're working in the area," or leftover materials from another job.
Pressure to sign today.
Cash only, or a large payment up front.
A request that you pull the permits yourself.
A push to use a lender they recommend.
No license number, or no certificate of insurance when asked.
A one-line bid with no product names or quantities.
Reluctance to put promises in writing.

Once you've hired, our guides to kitchen remodel steps and remodeling permits show what should happen next.

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Frequently Asked Questions

How do I check if a contractor is licensed?

Search your state licensing board's website by business name or license number, or ask your county or city if licensing is handled locally. Confirm the license is active, issued to the same business name on your contract and classified for your type of work. For homes built before 1978, also check the firm's EPA lead-safe certification.

How much should a deposit be for a remodel?

It depends on your state. California caps down payments at $1,000 or 10% of the contract price, whichever is less. Massachusetts and Maryland generally cap deposits at one-third of the price, with a Massachusetts exception for special-order materials. Wherever you live, don't pay the full amount up front.

What insurance should a remodeling contractor have?

General liability insurance, which covers damage to your home, and workers' compensation for anyone working on your job. Ask for a certificate of insurance sent directly from the contractor's agent, and check that the policy dates cover your project.

Should I hire the contractor with the lowest bid?

Not automatically. Make sure every bid covers the same scope, products and allowances first. A low number that leaves out permits, demolition or realistic allowances often ends up costing more through change orders.

Who should pull the permit, me or the contractor?

In most cases the contractor should. A contractor who asks you to pull the permit may be shifting responsibility for the work, and its inspections, onto you. If you're doing the work yourself, check your local building department's rules for homeowner permits.