Home Remodeling: How to Hire a Contractor You Can Trust
Published August 04, 2026 · ZipServ
Home remodeling projects go wrong in predictable ways — cost overruns, delays, work that has to be redone, contractors who disappear mid-project. Most of these failures have the same root: not enough vetting before the first check was written. Here's what to do differently.
Get at least three written bids
Not ballpark estimates over the phone — written, itemized bids from three contractors who have walked your job in person. This gives you price comparison, but more importantly, it lets you see how each contractor thinks about your project. The most detailed bid often comes from the most organized contractor.
Be suspicious of bids that are dramatically lower than the others. Either the scope is different (read carefully) or someone is planning to make up the difference in change orders after the job starts.
Verify their contractor license and insurance
For home improvement work, verify:
- State contractor registration (required in Texas for certain residential work)
- General liability insurance (minimum $300,000 per occurrence; $1M+ for larger projects)
- Workers' compensation for any employees
Ask for a Certificate of Insurance and verify it directly with the insurance company. Contractors who claim to be "self-insured" or ask you not to worry about it are red flags.
Verify the trade licenses of their subs
If your remodel includes electrical, plumbing, or HVAC work, the subcontractors they use for those trades need to be independently licensed. Ask who they're using for electrical and plumbing, and verify those licenses separately.
What must be in your contract
Never start a remodeling project without a written contract that includes:
- Complete scope of work — specific materials, brands, finishes, dimensions
- Start date and projected completion date
- Payment schedule (see below)
- Change order process and pricing
- Who pulls permits (should be the contractor)
- Cleanup and debris removal terms
- Warranty on workmanship (typically 1 year minimum)
Payment schedule: the industry standard
A reasonable payment schedule for remodeling work:
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- 10–30% deposit at signing
- Staged payments tied to completion milestones (framing complete, rough-in inspected, etc.)
- 10–15% holdback paid at substantial completion
Never pay more than 30% upfront. A contractor who needs 50%+ to start the job has cash flow problems — and you become their bank.
Permits are non-negotiable
Any remodel involving structural changes, electrical upgrades, plumbing, HVAC, or additions requires permits. A contractor who suggests skipping permits "to save money" is asking you to carry illegal, uninspected work when you sell your home. Unpermitted work can fail a home inspection, prevent the sale, or create insurance coverage disputes. Permits protect you.
Red flags
- No written contract, or a vague one-page agreement
- Asks for more than 30% upfront
- Recommends skipping permits
- Can't provide a local reference willing to talk
- Pressures you to decide immediately with a "limited time" price
- Goes quiet when you ask about specific material brands or specifications
References: what to actually ask
Don't just ask "were you happy with the work?" Ask: Did they finish on time? Was the final invoice close to the original bid? Were there surprises, and how did they handle them? Would you hire them again for a bigger project? The last question tells you the most.
A remodeling contractor who's already done work for several of your neighbors — and those neighbors are happy — is worth more than any license check. That accountability to a real community is what makes neighbor recommendations different from online reviews.
Find a trusted Remodeling near you
Search by ZIP code to find businesses your neighbors have already vouched for.