5 Things to Do Before You Sign a Contractor (Save Yourself $10,000+ in Headaches)
By Stacy C. · January 15, 2026 · 7 min read
A signature on a contractor agreement is a legal commitment of tens of thousands of dollars. Run through these 5 non-negotiable checks first.
Homeowners lose billions every year to bad contractor decisions. Almost all of it could be prevented in the days before a signature. Here are the five things to lock in before you sign anything.
1. Verify the license — yourself
Do not trust a screenshot. Every state has a public contractor license lookup. Search the business name and the license number. Confirm the license is active, in the right classification (general, HIC, electrical, etc.), and free of open complaints. In Maryland, use MHIC. In Virginia, use DPOR. In D.C., use DCRA. Five minutes online could save you a five-figure mistake.
2. Get a current Certificate of Insurance — sent directly by the insurer
Ask the contractor to have their insurance broker email the COI to you directly, listing you as a certificate holder. You want to see two things: general liability (at least $1M) and workers compensation. If a worker gets hurt on your property and the contractor has no workers comp, you can be personally liable.
3. Talk to three recent references
Not 'reviews online' — actual phone calls. Ask: 'Did they finish on time? Did the final invoice match the estimate? Were there change orders, and were they fair? Would you hire them again?' A contractor who cannot produce three recent references is hiding something.
4. Demand a written, line-item scope of work
The contract should specify materials by brand and model, square footage, finishes, allowances, who pulls permits, start and completion dates, and a clear change order process. 'Remodel kitchen — $48,000' is not a scope of work. It is a future lawsuit.
5. Lock in a fair payment schedule
A healthy payment schedule looks like: 10% deposit at signing, milestone payments tied to completed phases (demo done, rough-in passed, drywall closed, etc.), and 10% final payment after punch list. Never pay for work that has not been done. Never pay 100% before final walkthrough.
Bonus: Read the cancellation clause
Most states give homeowners a 3-day right to cancel a home improvement contract. Make sure that clause is there and that you understand it. If something feels off after you sign, you may still have a window to walk away.
Doing these 5 things takes maybe two hours. Skipping them can cost you years of regret. If you'd rather have a vetted contractor matched for you with all of this already verified — that is exactly what SMC Home Improvement does, for free.
Skip the vetting. We've already done it.
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