Red Flags When Choosing a Contractor: Warning Signs Before You Hire (2025)
Hiring the right contractor can make or break your home improvement project. While many professionals are licensed, reliable, and trustworthy, others may cut corners, overcharge, or create costly problems. Knowing the red flags when choosing a contractor can help you avoid stress, delays, and financial loss.
Before hiring, always verify licensing through your state board: Verify Contractor License by State.
🚩 1. No License or an Unverifiable License
If a contractor refuses to share their license number, cannot prove their status, or asks you to “trust them,” this is a major red flag. Unlicensed contractors often:
- Can’t pull permits
- Don’t carry proper insurance
- May disappear after payment
- Perform work that won’t pass inspection
Always verify their license using official state databases.
🚩 2. No Proof of Insurance
A legitimate contractor carries general liability insurance and workers’ compensation (when required). This protects you if something is damaged—or if someone is injured on your property.
If they say “don’t worry about it,” that’s a red flag.
🚩 3. Extremely Low Bids
A bid that is significantly cheaper than competitors usually indicates:
- Low-quality materials
- Cut corners
- Hidden fees added later
- Underqualified labor
- They plan to increase the price halfway through
A good rule: If 3 bids are similar and one is dramatically lower, reject the outlier.
🚩 4. High-Pressure Sales Tactics
Watch out for contractors who push you to sign “today only,” offer unrealistic discounts, or pressure you into quick decisions. Professional contractors provide written estimates and give you time to compare quotes.
🚩 5. Asking for Large Upfront Payments
Most states limit the amount a contractor can request upfront, typically around 10–20%. Avoid anyone asking for:
- Half upfront
- Cash-only payments
- Payment before materials arrive
Never pay for the entire project upfront.
🚩 6. No Written Contract
A legitimate contractor always provides a written contract that includes:
- Scope of work
- Start and completion dates
- Payment schedule
- Materials and specifications
- Warranty information
- Change order process
If they don’t want to document details, avoid them.
🚩 7. Poor Communication
Contractors who:
- Don’t answer questions clearly
- Ignore calls or texts
- Reschedule constantly
- Provide vague timelines
…are unlikely to manage your project well.
🚩 8. No Physical Address or Online Presence
A contractor without:
- A business address
- A professional phone number
- A website or portfolio
- Online reviews
…may be hard to locate if something goes wrong.
🚩 9. Negative or Suspicious Reviews
Look for patterns such as:
- Payment disputes
- Work not completed
- No-shows
- Poor-quality craftsmanship
Multiple recent 1-star reviews? That’s a big red flag.
🚩 10. Refusing to Pull Permits
If a project requires a permit, the contractor should pull it. Avoid contractors who say:
- “You don’t need a permit.”
- “Let’s skip the permit to save money.”
- “Permits take too long—forget it.”
Unpermitted work may:
- Fail inspection
- Void insurance claims
- Cause problems during resale
🔧 How to Protect Yourself When Hiring a Contractor
- Verify licensing & insurance
- Get 3–4 written quotes
- Check references & recent work photos
- Use a written contract
- Match payments to progress
- Document everything
For more help choosing a pro, see: StrictlyMatch Contractor FAQs.
❓ Frequently Asked Questions
What’s the biggest red flag when choosing a contractor?
The biggest red flag is a contractor who refuses to provide a license number or proof of insurance. Always verify before hiring.
Are low bids always bad?
Not always, but extremely low bids typically indicate cut corners, missing materials, or future price increases.
How can I check if a contractor is legitimate?
Use state licensing databases: Verify Contractor License by State.
Should I ever pay a contractor upfront?
A small deposit (10–20%) is normal. Anything more is a red flag.
Can I cancel a contract if I see red flags?
Yes. Most states allow cancellation within a short window. Check your contract for cancellation terms.
StrictlyMatch – Verified Contractors for Home Improvement & Remodeling
Helping homeowners avoid scams by choosing licensed, trustworthy professionals.
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