How to Hire a Contractor:
The Complete Guide
Step-by-step guide to finding, vetting, and hiring trusted contractors for HVAC, plumbing, and electrical work. Learn what to check, red flags to avoid, and how to protect yourself.
Hiring the right contractor can mean the difference between a smooth, successful project and a costly nightmare. Whether you need HVAC installation, plumbing repair, or electrical work, following a systematic approach protects your home and wallet.
This guide covers everything from initial planning to project completion, including verification steps, warning signs, and best practices for working with contractors.
Step 1: Plan Your Project
Before contacting contractors, clarify your project scope and requirements.
Define Your Needs
- • What exactly needs to be done? (Installation, repair, replacement, upgrade)
- • What's your timeline? (Emergency, within weeks, flexible)
- • What's your budget range? (Be realistic about costs)
- • Are there specific brands or materials you prefer?
- • Do you have any special requirements or constraints?
Do Your Research
- • Learn typical costs for your project (see our service guides)
- • Understand what the work involves
- • Research whether permits are required
- • Learn basic terminology so you can communicate effectively
- • Identify questions to ask contractors
Step 2: Find Potential Contractors
Best Sources for Finding Contractors
✓ Recommended Sources
- • Verified platforms (cntrctrs) – pre-screened contractors
- • Personal referrals – friends, family, neighbors who had good experiences
- • Local trade associations – HVAC, plumbing, electrical professional groups
- • State licensing boards – search by license number
✗ Be Cautious With
- • Door-to-door solicitors
- • Unlicensed "handymen" for specialized work
- • Craigslist for major projects
- • Contractors who only have PO boxes
- • Those with no verifiable business address
Pro Tip
Start with 5-7 potential contractors. You'll narrow this down to 3-5 for quotes after initial vetting. Having multiple options gives you leverage and better pricing.
Step 3: Vet Each Contractor
This is the most critical step. Thorough vetting prevents 90% of contractor problems.
Essential Verification Checklist
License Verification
Confirm active, current license with state licensing board. Get license number and verify online. Ensure license covers the specific work you need (HVAC, plumbing, electrical).
How to verify: Search "[your state] contractor license lookup" or ask contractor for license number and verify directly with state board.
Insurance Confirmation
Request Certificate of Insurance (COI) showing general liability (minimum $500K) and workers compensation. Call insurance company to verify coverage is current.
How to verify: Ask: "Can you provide a current Certificate of Insurance?" Call the insurance company listed on the certificate to confirm it's valid.
Review Check
Check Google, Yelp, Angi, and BBB. Look for consistent 4+ star ratings and read recent reviews carefully. One bad review isn't a dealbreaker, but patterns matter.
How to verify: Google "[contractor name] reviews" and check 3-4 platforms. Focus on reviews from the last 12 months. Look for responses to negative reviews.
Reference Check
Ask for 3-5 references from jobs completed in the last year, similar to yours. Actually call them and ask specific questions about quality, timeline, communication.
How to verify: Ask references: "Would you hire them again? Any issues? Did they clean up? Were there surprises in cost? How was communication?"
Business Standing
Verify business is registered with state. Check BBB rating and for any unresolved complaints. Search for lawsuits or liens.
How to verify: Search "[your state] business entity search" and "[contractor name] [city] lawsuit" to check for legal issues.
Step 4: Get Detailed Written Quotes
Quote Best Practices
Get 3-5 Written Quotes
Never accept verbal quotes. Get detailed written estimates from at least 3 contractors. This gives you pricing perspective and negotiating power.
What Every Quote Should Include:
- ✓ Detailed scope of work (what will be done, materials used)
- ✓ Itemized costs (labor, materials, permits, disposal fees)
- ✓ Timeline (start date, estimated completion, milestones)
- ✓ Payment schedule (never 100% upfront)
- ✓ Warranty information (workmanship and materials)
- ✓ Permit responsibility (who pulls permits)
- ✓ Cleanup procedures (who removes debris)
- ✓ License and insurance numbers
Warning: If quotes vary by more than 50%, something's wrong. Either the low bidder is cutting corners or planning to add fees later, or the high bidder is overcharging. Ask questions to understand the differences.
Step 5: Sign a Solid Contract
Contract Essentials
Never start work without a written contract. Verbal agreements mean nothing in disputes.
Required Contract Elements:
- ✓ Both parties' names and addresses
- ✓ Detailed scope of work
- ✓ Total cost breakdown
- ✓ Payment schedule
- ✓ Start and completion dates
- ✓ Materials specifications (brand, model)
- ✓ Warranty details
- ✓ Change order process
- ✓ Cancellation terms
- ✓ Dispute resolution process
- ✓ Cleanup responsibilities
- ✓ Permit responsibilities
Never Sign If:
- • Contract is blank or incomplete
- • Payment schedule requires more than 50% upfront
- • Contractor pressures you to sign immediately
- • You don't understand terms
- • There's no cancellation clause
Critical Red Flags
Walk away immediately if you encounter any of these warning signs:
🚩 No License or Insurance
Why it matters: Illegal in most areas. You're liable for injuries and poor work. No recourse if something goes wrong.
🚩 Demands Large Upfront Payment
Why it matters: Standard is 10-30% deposit. If they demand 50%+ or full payment upfront, they may take your money and disappear.
🚩 High-Pressure Sales Tactics
Why it matters: "Today only" pricing, aggressive follow-ups, pressure to sign immediately. Legitimate contractors let you decide.
🚩 No Written Contract
Why it matters: Verbal agreements are worthless. Without written terms, you have zero protection.
🚩 Price Is 50%+ Lower Than Others
Why it matters: Either cutting corners, using cheap materials, planning to add fees, or unqualified. Too good to be true usually is.
🚩 Poor Communication
Why it matters: If they're hard to reach now, imagine during the project. Professional contractors respond within 24-48 hours.
🚩 Refuses to Pull Permits
Why it matters: Says "we don't need permits" when you do. This is illegal, voids insurance, and creates problems when selling your home.
🚩 No Physical Business Address
Why it matters: Only has PO box or cell number. Legit businesses have verifiable addresses and professional setup.
During the Project
Best Practices While Work Is in Progress
Document Everything
Take photos before, during, and after work. Keep all receipts, contracts, and change orders. Email important conversations for a paper trail.
Monitor Progress
Check work daily (but don't micromanage). Ask questions if something doesn't look right. Good contractors welcome informed homeowners.
Communicate Clearly
Establish how you'll communicate (phone, email, text). Set expectations for updates. Address concerns immediately, not after completion.
Stick to Payment Schedule
Only pay for completed work. Never pay in full until final inspection passes. Hold 10-20% until you're completely satisfied.
Approve All Changes
Get written change orders for any work additions or modifications. Don't accept verbal "extras." Agree on cost before additional work.
After Project Completion
Final Steps Before Signing Off
- 1
Complete Final Walkthrough
Inspect all work thoroughly with contractor present. Test everything. Check for debris, damage, or incomplete work.
- 2
Verify Permits & Inspections
If permits were required, ensure final inspection passed. Get copies of signed-off permits for your records.
- 3
Get Written Warranties
Obtain written warranties for both workmanship and materials. Keep with your home records.
- 4
Create a Punch List
Document any remaining items that need attention. Get agreement on completion timeline for these items.
- 5
Make Final Payment
Only pay final amount after 100% satisfaction. Use credit card for additional protection if possible.
- 6
Leave a Review
Share your experience on Google, Yelp, Angi. Honest reviews help other homeowners and reward good contractors.
Quick Reference Checklist
Before Hiring
- ☐ Verify license
- ☐ Confirm insurance
- ☐ Check reviews (3+ platforms)
- ☐ Call references
- ☐ Get 3-5 written quotes
- ☐ Sign written contract
During Project
- ☐ Take photos daily
- ☐ Monitor progress
- ☐ Communicate regularly
- ☐ Get written change orders
- ☐ Pay only for completed work
After Completion
- ☐ Final walkthrough
- ☐ Check permits/inspections
- ☐ Get written warranties
- ☐ Complete punch list
- ☐ Make final payment
- ☐ Leave honest review
Ready to Find Verified Contractors?
Browse pre-verified contractors in your area. Every professional is already licensed, insured, and reputation-checked.