How to Look Up a Contractor Before Hiring

Hiring a contractor for home improvement, repairs, or construction is a significant financial decision. Unfortunately, contractor fraud and substandard work are common problems. Taking time to research a contractor before hiring them can save you thousands of dollars and enormous headaches.

Why You Should Always Research a Contractor

The stakes of hiring the wrong contractor are high.

Home improvement fraud is among the top consumer complaints reported to state attorneys general
The average cost of resolving a bad contractor experience exceeds $10,000
Unlicensed contractors leave homeowners with no recourse if work is defective
Some fraudulent contractors take deposits and never return to do the work

Step-by-Step Verification Process

1. Verify Their License

Most states and many municipalities require contractors to be licensed for certain types of work.

Check your state's licensing board — Every state has a contractor licensing board or division (search "[your state] contractor license lookup")
Verify the license is current — An expired license is as good as no license
Check the license type — Make sure the license covers the type of work you need done
Note the license number — A legitimate contractor will readily provide this

2. Check for Insurance

A properly insured contractor protects both you and their workers.

General liability insurance — Covers damage to your property during the work
Workers' compensation insurance — Covers injuries to their employees on your property
Ask for a certificate of insurance — Request it directly and verify it with the insurance company
No insurance is a deal-breaker — If a contractor is not insured, do not hire them regardless of price

3. Search for Complaints and Reviews

Multiple sources can reveal a contractor's track record.

Better Business Bureau (BBB) — Check their rating and read complaint history
Google Reviews — Look at both the overall rating and the content of individual reviews
Yelp — Additional consumer reviews
Angi (formerly Angie's List) — Contractor-specific reviews and ratings
State attorney general — Some states publish consumer complaints by company
Local consumer protection office — May have complaint records on file

4. Check Court Records

Court records can reveal serious problems with a contractor.

Search the contractor's name and business name in your county's court records
Look for lawsuits filed by former customers
Check for liens filed against their business
Search for any criminal charges related to fraud or theft
Bankruptcy filings may indicate financial instability

5. Use People Search Tools

A people search can provide additional background on the individual behind the business.

Search the contractor's personal name to verify their identity
Check their address history to see how established they are in the area
Look for any criminal records in their background
Review associated businesses they may have operated under other names
Contractors who have operated under multiple business names may be cycling through company identities to escape bad reviews

6. Verify References

Any reputable contractor will provide references from past customers.

Request at least three references from recent projects
Actually call the references and ask specific questions
Ask to see the completed work if the reference is local
Be wary of a contractor who cannot or will not provide references

Questions to Ask References

When you contact a contractor's references, ask these specific questions.

What work did they perform for you?
Was the project completed on time?
Was the final cost close to the original estimate?
Were there any problems during the project? How were they handled?
Was the work quality satisfactory?
Did they obtain the necessary permits?
Would you hire them again?

Red Flags That Should Stop You From Hiring

Certain warning signs indicate a contractor should be avoided.

No license or unwillingness to provide a license number — Walk away immediately
No written estimate or contract — Professional contractors always put it in writing
Demands full payment upfront — Legitimate contractors typically ask for 10-33% upfront, not 100%
Significantly lower bid than all other contractors — Extremely low bids often lead to corners being cut or abandonment mid-project
Pressures you to decide immediately — "This price is only good today" is a classic high-pressure tactic
No physical business address — Operating solely from a cell phone and PO box is concerning
Cash only — Insistence on cash payments avoids accountability
Door-to-door solicitation — Especially after storms or natural disasters

What a Good Contract Should Include

Before any work begins, insist on a written contract that covers these elements.

Detailed scope of work (what exactly will be done)
Materials to be used (brands, quality levels)
Total cost and payment schedule
Start date and estimated completion date
Permit responsibilities (who pulls permits)
Warranty on work and materials
Change order procedures
Cleanup and debris removal
Cancellation terms

Getting Permits

For significant work, building permits are usually required.

Ask the contractor who will pull the permits
Verify that permits are actually obtained before work begins
Unpermitted work can cause major problems when selling your home
Your local building department can tell you what work requires a permit

Protecting Yourself During the Project

Even after hiring a vetted contractor, stay involved.

Never pay the full amount before work is complete
Tie payments to completion milestones
Inspect work at each stage
Keep all receipts, contracts, and communication
Document the project with photos

Taking the time to thoroughly research a contractor before hiring is one of the smartest investments you can make as a homeowner. The combination of license verification, insurance checks, reviews, court records, and background research gives you the information needed to make a confident hiring decision.