How to Hire a General Contractor: A Step-by-Step Guide

A general contractor runs your project: they hire and schedule the trades, order materials, pull permits and keep the job moving. Choose well and a big project feels manageable. Choose badly and it can turn into months of stress. Here is a step-by-step way to hire one.

Step 1: Define the project first

Contractors can only bid what you can describe. Write down what you want done, the rooms or areas involved, the finish level you expect and the budget range you are comfortable with. Add photos and rough measurements. The clearer your description, the more comparable your bids will be.

Step 2: Build a shortlist

Start with people you trust. Ask neighbors, friends and coworkers who they would hire again and why. Local supplier counters and building-material yards often know which contractors pay their bills and show up on time. Online directories and reviews are useful, but look for patterns in what people say rather than relying on a star rating.

Aim for three to five names, then narrow to the three you will ask to bid.

Step 3: Verify license and insurance

Rules differ by state and city, but in most places a general contractor doing substantial work needs a license. Use your state or local licensing board's online lookup to confirm that the license is active and matches the business name. Then ask for proof of:

• General liability insurance, which covers damage to your property.
• Workers' compensation, which covers injuries to the crew. Without it, you may be exposed if someone is hurt on your property.

Ask for the certificates and, if you want to be thorough, confirm them with the insurer.

Step 4: Meet them and ask real questions

A site visit tells you a lot. Notice whether they ask thoughtful questions, point out problems you had not considered and explain their approach plainly. Ask:

• Who will be on site every day, and who is my main contact?
• Which parts of the job do you do yourselves and which do you subcontract?
• Who pulls permits and schedules inspections?
• Can I speak with two or three recent customers with similar projects?
• What is your realistic start date, and what could delay it?

Step 5: Compare bids fairly

Give every contractor the same written scope. Then compare line by line, not just the bottom number. Look for allowances, which are placeholder amounts for items like tile or fixtures, since a low allowance can hide a higher final cost. If one bid is far lower than the rest, ask what it leaves out before assuming it is a bargain.

Step 6: Put everything in writing

A solid contract names both parties, lists the scope in detail, states the price and payment schedule, sets start and finish dates and explains how changes are handled. Read our guide to reading a contractor quote and contract before you sign.

Step 7: Manage the job

Agree on how you will communicate, such as a weekly check-in. Keep a written record of every change and approval. Pay according to the schedule and tie payments to completed stages, not just dates. Do a final walkthrough and make a punch list before the last payment.

Red flags to walk away from

• No license or no insurance.
• Pressure to sign today or a deal that disappears.
• A request for most of the payment up front.
• Reluctance to provide references or a written contract.

Taking an extra week to vet your contractor is one of the cheapest forms of protection you can buy.