Questions to Ask a Contractor Before You Sign

Why these questions belong before the contract, not after

Most disputes between homeowners and contractors trace back to something that was assumed rather than written down: who was responsible for a permit, what happens if hidden damage is found, when the next payment is due. Asking direct questions before signing forces those assumptions into the open.

A contractor who answers these questions clearly, in writing, and without irritation is giving you useful information about how they'll handle problems later. One who dodges specifics or pressures you to sign quickly is also giving you information.

Questions about licensing and insurance

Don't stop at asking — verify the license number yourself on your state contractor licensing board's website, and consider calling the insurance carrier to confirm the policy is active for the dates of your project.

• What is your license number, and which state agency issued it?
• Does your license cover this specific type of work?
• Can you provide a certificate of insurance showing general liability and workers' compensation coverage?
• Are your subcontractors, if any, also licensed and insured?
• Are you bonded, and if so, for how much?

Questions about scope, materials and permits

• Can you put the full scope of work in writing, including specific materials, brands or grades?
• Who is responsible for pulling any required permits?
• What happens if an inspection reveals additional work is needed?
• How will you handle unexpected issues found once work starts, such as water damage or outdated wiring?
• What is the estimated start date and completion date?

Questions about payment schedules and change orders

Ask exactly how payments are structured: the size of any deposit, what milestones trigger each subsequent payment, and what portion is held back until the work is fully complete and inspected. Payment schedules tied to completed phases of work, rather than large upfront sums, are the norm for legitimate contractors, and some states cap allowable deposit amounts by law.

Change orders — written amendments to the contract when scope or price changes — should be addressed before work starts, not improvised mid-project. Ask how a change order would be documented, priced and approved, and insist that any change be signed by both parties before the additional work begins.

• What is the total contract price, and what does it include and exclude?
• What is the payment schedule, and what triggers each payment?
• Does your state limit the size of an upfront deposit for this type of work?
• How are change orders documented, priced and approved?
• What portion of payment is withheld until final completion and inspection?

Questions about warranties

Ask what warranty covers the labor itself, separate from any manufacturer warranty on materials or products installed. Labor warranties vary widely in length and what they cover, and they should be described in writing, not just promised verbally.

Also ask what happens if the company goes out of business or you move — whether the warranty is transferable, and how you would make a claim if something fails after the work is done.

• What does your workmanship warranty cover, and for how long?
• Is the manufacturer's warranty on materials separate, and what does it require to stay valid (for example, professional installation)?
• Is the warranty transferable if I sell the home?
• How do I file a warranty claim, and who do I contact?

Questions about lien protection on larger jobs

For projects involving subcontractors or significant material purchases, ask whether you should expect lien waivers as payments are made. A lien waiver is the subcontractor's or supplier's written confirmation that they've been paid, which protects you from a lien being placed on your home even after you've paid the general contractor.

• Will subcontractors and suppliers be paid directly by you or through the general contractor?
• Can you provide lien waivers as payments are made?
• What is the process in this state if a subcontractor claims they weren't paid?

Questions about cancellation rights

If you're signing a contract somewhere other than the contractor's regular place of business — such as in your home — ask whether you have a right to cancel within a short window under the FTC's Cooling-Off Rule, and ask the contractor to point out that language in the contract. Not every contract or sales situation qualifies, so check the FTC's current guidance for the specifics that apply to your situation.