10 Red Flags When Hiring a Home Improvement Contractor (And What To Do Instead)

The contractor industry is full of skilled, honest professionals. It is also full of people who count on you being too polite, too busy, or too embarrassed to ask hard questions. These 10 red flags will help you separate the two.

1. Door-to-door sales

Most reputable contractors do not knock on doors. The 'we have leftover materials from a job down the street' pitch is a classic scam.

2. Cash-only or massive upfront deposit

More than 33% upfront is a red flag in almost every state. Cash-only is worse.

3. No physical address or business presence

A truck and a phone number is not a contractor. Verify the LLC, the address, and the Google Business profile.

4. License or insurance 'on the way'

If they cannot send you a license and COI within 24 hours, they don't have them.

5. Estimate scribbled on a notepad

You want a typed, itemized, dated estimate on company letterhead. Anything less is not a real bid.

6. Pressure to start tomorrow

Good contractors are booked weeks out. If they can start tomorrow, ask yourself why.

7. They want to skip permits

'We don't need a permit for that' is the line that ends with you getting a stop-work order and a fine. Permits also protect resale value.

8. No written warranty

Reputable contractors back their labor for at least 1 year, plus the manufacturer warranty on materials. Get it in writing.

9. They subcontract everything but won't tell you who

Subcontracting is normal. Hiding who is on your property is not.

10. Bad reviews — or no reviews at all

Check Google, Yelp, Angi, and the BBB. Look for patterns, not one-off complaints. A brand new business with zero history is also a risk.

What to do instead

Either do the vetting yourself with the checklist above, or use a service that vets contractors for you. SMC Home Improvement screens every contractor in our network for license, insurance, BBB, reviews, and work history — free for homeowners.