The Red Flags
- Oversized deposit: a request for 30%–50% or more up front, especially in cash, is a classic warning.
- Storm chasers: crews appearing right after weather events offering "leftover material" discounts.
- No license or insurance: or a license number that does not check out with the state.
- Pressure tactics: "today only" pricing, discouraging you from getting other bids.
- Vague contract: no scope, no schedule, no warranty, or a handshake deal.
Verify Before You Pay
Three checks take an hour and prevent most losses:
- Confirm the license and any complaints with your state contractor licensing board — search the public registry yourself.
- Call the insurer named on the certificate of insurance to confirm it is active and lists your address as additional insured for the project.
- Check references with recent, local homeowners and drive by a current job site if possible.
What a Safe Contract Contains
A legitimate contract names both parties, the full scope, materials, start and finish dates, payment schedule tied to milestones, change-order process, permit responsibility, and a warranty. Pay in stages as work is verified, never in one lump.
Request a lien waiver at each payment so you are not left owing the contractor’s subs.
If Something Feels Wrong
Stop payments, put concerns in writing, and contact your state licensing board and consumer protection office. Many states have recovery funds for homeowners defrauded by licensed contractors. Document everything from the first interaction.