5 Questions Before You Hand Over a Dime5 Questions to Ask Before You Sign with a Contractor
Five plain questions, asked before you sign, that save homeowners most of the headaches I see later.
Most project trouble doesn't start on the job site. It starts at the kitchen table, the day the contract gets signed.
When I was a Marine, we planned before we moved. Construction works the same way. A good contractor won't mind these questions. A contractor who dodges them has told you something important.
1. "What exactly is included, and what isn't?"
Scope is the full description of the work: what's being built, with what materials, to what standard. Vague scope is the root of most fights.
"Remodel bathroom" is not a scope. A scope says which fixtures, what tile, who handles drywall repair, whether the old vanity gets hauled away, and so on.
Ask just as clearly what's excluded. Allowances, budget placeholders for items you'll pick later like light fixtures, should be spelled out so you know what happens if your choice costs more.
2. "Is everything in a written contract, and how do changes work?"
Get it in writing. In Pennsylvania, the Home Improvement Consumer Protection Act requires most home improvement contracts to be written and signed by both you and the contractor. Under that law, the contract should include things like the contractor's registration number, contact information, approximate start and finish dates, a description of the work and materials, the total price and payment terms, any known subcontractors, insurance information, and a notice of your right to cancel within three business days. The Attorney General's office also says a contractor may not take payment before the contract is signed.
That law covers home improvements; new home construction and other situations can be handled differently, so check with your attorney about your project.
Just as important: changes. The contract should say that changes happen only by a written change order signed by both of you, with the cost and schedule impact stated. Verbal "sure, we can do that" is how budgets quietly double.
3. "How will payments line up with the work?"
A healthy payment schedule follows progress. You pay as defined milestones are completed and verified, like foundation done and inspected, or framing done and inspected, not on calendar dates and not mostly up front.
Watch for large deposits that aren't tied to specific materials. And ask how you'll know each milestone is really complete. (I wrote a separate piece on what to check before releasing a draw.)
4. "Who pulls the permits and schedules the inspections?"
Most structural, electrical, plumbing, and mechanical work needs a permit from your local code office, and inspections at certain stages. Those inspections are there for your family's safety.
Usually the contractor pulls permits and schedules inspections, but the contract should say so plainly. Be cautious if someone suggests skipping permits to save time. Unpermitted work can cause trouble with insurance, resale, and, most importantly, safety. When in doubt, call your local code office.
5. "Can I verify your registration, insurance, and references?"
This one is on you, the homeowner. Don't just take anyone's word for it.
- Registration. In Pennsylvania, most home improvement contractors must register with the Office of Attorney General, and you can look up a contractor's registration status on the Attorney General's website. Registration isn't a stamp of quality, but working with someone who should be registered and isn't is a red flag.
- Insurance. Ask for a certificate of insurance and call the insurance agent listed on it to confirm the policy is active. Ask about liability coverage and workers' compensation if they have employees. Your attorney or insurance agent can tell you what coverage makes sense for your job.
- References. Ask for recent clients with similar projects, and actually call them. Ask: Did they finish on time? How did they handle changes? Would you hire them again? If you can, look at finished work in person.
Take your time
Slowing down for a day or two before you sign costs you almost nothing. Rushing can cost you plenty.
If you'd like help defining scope, reviewing bids side by side, or setting up a payment schedule tied to real milestones, that's the heart of my Pre-Construction Planning & Budgeting and Owner's Representation work. I'm happy to talk it through.