The Do's and Don'ts When Looking for a Contractor (2026 Homeowner's Guide)
By Stacy C. · January 29, 2026 · 8 min read
Hiring a contractor is part interview, part background check, part gut instinct. These rules will keep you out of the 30% of projects that go off the rails.
DO get at least 3 bids on any project over $5,000
Three bids gives you a real market range, not a single contractor's guess. Anything outside that range — way under or way over — deserves a hard look.
DO check licensing and insurance before the first site visit
Verify the license number on the state board's website. If they are not licensed in the right category, the conversation is over. You should not even invite them to your home.
DO read the contract twice. Then once more.
Every term in a home improvement contract is negotiable until you sign. Strike anything vague. Add anything missing. Initial every change.
DO insist on a payment schedule tied to milestones
Deposit, rough-in, drywall, finish, punch list. Never pay ahead of work completed.
DO document everything in writing
Texts count. Emails count. Pictures of the job site at the end of every week count. Build a paper trail you can use later if you need to.
DON'T hire based on price alone
The lowball bid is the most expensive bid in the industry. It is the bid most likely to come back as a change order, a lien, or a half-finished project.
DON'T pay cash
Pay by check or credit card. Cash leaves you with no proof, no dispute rights, and a strong signal that the contractor is dodging taxes — and probably other rules too.
DON'T let a contractor pull permits in your name
If they are not willing or able to pull the permit themselves, they are not the contractor you want.
DON'T sign on the first visit
Sleep on every bid. A contractor that refuses to give you 24 hours is telling you everything you need to know.
DON'T skip the references
Three phone calls. Twenty minutes. Could save you twenty thousand dollars.
DON'T ignore your gut
If the conversation feels off, the contractor is rude to your spouse, or they keep dodging straight questions — that's your sign. There are good contractors out there. Keep looking.
DO use a vetted matching service
If all of this sounds like a lot of work — it is. That's why SMC Home Improvement exists. We verify license, insurance, BBB, online reviews, and work history before we ever match you with a contractor. It's 100% free for homeowners.
Skip the vetting. We've already done it.
SMC Home Improvement matches homeowners with licensed, insured, vetted contractors — free.
