The short version

Pick a contractor who is licensed and insured, who gives you a written estimate that describes the work, the materials, the completion date and the price, and who does not push you to sign fast or pay a large amount before work starts. That is the advice of the Federal Trade Commission, and the National Association of Insurance Commissioners says the same in its warnings about aggressive contractors after a disaster.

The checklist breaks that into parts. Vetting is about who they are. Comparing bids is about what they offer. Red flags are the behaviours that should end the conversation.

Vetting, in plain terms

A license is something you confirm with your state or county government, not something you take on trust. Proof of insurance is something you ask to see. The FTC also suggests asking people you trust for names, contacting your local Home Builders Association and consumer protection office about complaints, and searching the company name along with words like scam, review and complaint. It adds that online reviews should be read critically, which is sound advice since any single rating can be unrepresentative.

For mold or contaminated water, the bar is higher. The EPA says to choose a contractor with mold cleanup experience, to check references, and to ask them to follow EPA guidance or standards from organizations such as ACGIH and IICRC. The federal homeowner guide hosted by the CDC says to look for inspectors or remediators certified by or affiliated with recognized bodies, and that your state may regulate mold work.

Comparing bids

Do not compare totals. Compare what each total buys. The FTC says to get written estimates, that each should describe the work, the materials, the completion date and the price, and that you should not choose the lowest bid automatically. If bids differ widely, ask each contractor to explain why. The explanation often turns out to be a difference in scope: one bid includes removing and replacing a material and another quietly does not.

If an insurance claim is involved, the NAIC notes that the adjuster may want to review estimates before repairs begin, and suggests having your contractor meet with you and the adjuster. Ask the adjuster what the insurer needs before you sign anything.

Worked example: bids that do not match

Suppose you ask for estimates on repairing a water-damaged bathroom ceiling and get several written bids. One is far lower than the others, one is in the middle, and one is higher and more detailed. Use the checklist: confirm each license, ask each for proof of insurance, and read each estimate for the same items. The low bid turns out not to mention drying the framing above the ceiling or testing for moisture; the detailed bid includes both. You call the low bidder, ask whether it is included, and get an answer in writing. Now the gap between bids is explained by scope, and you can decide on what you are actually buying.

Red flags

A few behaviours on the list are marked urgent. Pressure to sign quickly. A demand for a large upfront payment, or for cash. A contractor who asks you to be the person who obtains the building permits, which the FTC lists as a warning sign. Any one of them is enough to stop and reconsider.

Next steps

When you have chosen, read before signing a repair contract. To get comparable bids in the first place, the itemized estimate request gives you a letter that asks every contractor for the same level of detail.

Hiring a Contractor Checklist