Guides for homeowners

How to Vet and Hire a Contractor

Most contractor problems come from a vague scope, not bad intent. A bid that spells out the work, materials, schedule and payment terms protects both sides.

Step 1: Define the job in writing

Write down what you want done, the materials or finish level you expect, and any deadline. The same written scope goes to every contractor, so the bids can be compared directly.

Step 2: Collect three bids

For larger projects, get at least three. Ask each for an itemized bid: labor, materials, permits, cleanup, timeline and payment schedule. Be wary of a bid far below the others. It often leaves something out. Our guide to comparing contractor bids walks through reading them side by side.

Step 3: Check the basics

• License: Indiana does not license general contractors statewide, but electricians, plumbers and some trades are licensed, and many cities and counties require registration. Check what your city or county requires.
• Insurance: ask for a certificate of general liability insurance and workers' compensation, sent to you directly by the insurer or agent.
• References: speak to at least two recent customers, ideally for similar work.
• Reviews and complaints: check online reviews and the Better Business Bureau, and look for a consistent pattern, not one outlier.
• Permits: confirm who pulls them. Reputable contractors pull their own.

Step 4: Read the contract

A good contract names the parties, describes the work and materials, states the price and payment schedule, sets start and finish dates, explains how changes are handled, and includes warranty terms. Do not sign anything you do not understand.

Step 5: Pay safely

• Tie payments to milestones, not to dates.
• Keep the deposit modest. Be cautious of anyone who asks for a large payment or cash up front.
• Keep the final payment until the work is complete and you have walked it.
• Get lien waivers for larger jobs so a subcontractor or supplier cannot place a claim on your home.

Red flags

• Pressure to decide today, or a "special price" that expires.
• Door-to-door offers after a storm.
• No written contract, or a contract that is vague on scope.
• Cash only, or a request to pull permits yourself.
• Reluctance to share insurance or references.

Why a home manager helps

Vetting is time-consuming, and most homeowners do it rarely, so they have no way to compare. ABODE works with a trusted network of local vendors, requests bids on larger projects, checks scope and insurance, and oversees the work to completion. ABODE adds no markup to vendor work, so you pay the vendor's price.