To hire a general contractor, get written estimates for the same defined scope, verify each contractor’s license and insurance yourself, and sign a complete contract that ties payments to finished work. The FTC’s home improvement guidance adds two rules: don’t automatically choose the lowest bidder, and don’t pay the full amount up front.

When you need a general contractor

A general contractor coordinates several connected trades, schedules inspections and takes responsibility for the whole job. That’s useful for remodels, additions and repairs that touch structure, plumbing and electrical together. For a single-trade job, such as a drywall patch or a water heater swap, hiring that specialist directly is often simpler.

Get comparable written estimates

The FTC says a written estimate should include a description of the work, the materials, a completion date and the price. Ask every bidder to price the same scope, then line up:

  • drawings, specifications and allowances (what’s included, and who pays the difference)
  • permits, inspections, disposal and daily cleanup
  • protection of occupied rooms, plus dust and lead-safe practices in older homes
  • subcontractors and who supervises them
  • the schedule and how delays are handled
  • the payment schedule and the change-order process

If one bid is much lower, ask why. The FTC recommends asking for an explanation when estimates differ widely. Usually something is missing.

For drywall or other work that disturbs paint in a home built before 1978, EPA’s RRP rule requires the contractor to be lead-safe certified. Ask for proof.

Verify license, insurance and references

The FTC advises considering only contractors who are licensed and insured. Check the license with your state or county government, and ask for proof of insurance. Licensing rules vary by state and locality. Ask people you trust for recommendations, and the FTC suggests checking with local home builders associations and consumer protection officials for complaints.

Contract and payment

The FTC says the contract should include:

  • the contractor’s name, address, phone and license number
  • the project timeline
  • every promise about scope and cost, in writing
  • if you signed at home, a written statement of your right to cancel within three business days

Don’t pay the full amount up front. The FTC says to check with your state consumer agency about down-payment limits, and to hold final payment until the work is done to your satisfaction. Keep the contract, change orders, permits, inspection records, invoices and warranties together.

Warning signs

The FTC flags contractors who:

  • knock on your door uninvited
  • pressure you for an immediate decision
  • demand cash only
  • offer to arrange financing through a lender they know

Also pause if a contractor asks you to pull the permit in your own name for work they’re doing.

FAQ

How many estimates should I get?

Enough comparable written estimates to understand the differences. The FTC advises not to automatically choose the lowest bidder and to ask for an explanation when estimates differ widely.

What should a written estimate include?

The FTC says a written estimate should describe the work, materials, completion date and price. Comparable bids should also spell out permits, allowances, cleanup and exclusions.

How much deposit should I pay?

There’s no universal percentage. The FTC says not to pay the full amount up front, and to check with your state consumer agency because some states limit down payments.

Do I have a right to cancel a contract?

If you signed it in your home, the FTC says the contract should include a written statement of your right to cancel within three business days.

Sources