Before you compare a single price, verify three things: an active license for your state and trade, current general liability and workers' compensation insurance (ask the insurer directly for a certificate, not just the contractor's word), and whether the contractor is bonded for larger jobs. Get at least three written quotes, not just three numbers — compare scope, timeline, payment schedule, and warranty side by side. Walk away from anyone who shows up unannounced, demands full payment upfront, or won't put the deal in writing.
Start with credentials, not price
A low bid from an unlicensed or uninsured contractor isn't a deal — it's a liability you're agreeing to carry. Before you look at numbers, confirm:
- An active license for your state, county, and trade. Licensing boards vary by location and by specialty — roofing, electrical, and plumbing often require separate trade licenses even from a general contractor.
- General liability insurance and workers' compensation. Ask the contractor's insurance agent directly for a certificate of insurance rather than taking their word for it. Workers' comp specifically protects you if someone is injured on your property during the job.
- Bonding, especially for a major remodel. A bond means you can recover money if the contractor walks off the job or breaches the contract — it's a layer of protection insurance alone doesn't cover.
- A real track record. Look for at least three to five years in business, a permanent business address, a BBB profile, and actual references you call yourself — ask to see work they've completed, not just photos.
Get at least three quotes — and compare more than the price
Three written bids is the standard advice for a reason: it gives you a real sense of the going rate and makes an outlier — in either direction — obvious. An unusually low bid is often a warning sign, not a win; it can mean a contractor who's cutting corners or won't be able to pay for materials partway through the job. When you compare quotes, look past the bottom-line number at:
- Itemized scope — materials and labor broken out separately, not a single lump sum.
- A written timeline with a real start date and completion date.
- The payment schedule — how much is due upfront, at milestones, and on completion.
- Warranty terms — both on materials and on the contractor's own labor.
Red flags that should end the conversation
The FTC and Better Business Bureau both publish recurring warnings about the same handful of tactics. None of these are automatically fraud on their own, but any one of them is a reason to slow down and verify before signing anything:
- An unsolicited pitch from someone who says they were "already in the neighborhood" — especially common after a storm.
- A contractor offering "leftover materials" from another job at a discount.
- High-pressure tactics demanding you decide today, often paired with a price that expires immediately.
- A demand for full payment upfront, or a cash-only insistence. Many states cap how much a contractor can legally require as a deposit — your local consumer protection office can tell you the limit where you live.
- No written contract, or a contract missing the scope, price, and timeline.
- A contractor who asks you to pull the permit yourself, or tells you no permit is needed when the work clearly requires one.
- A contractor who recommends a specific lender for financing the work.
What the contract should actually say
A written contract should spell out the full scope of work, materials to be used, total price, payment schedule, and start and completion dates. In the US, most home improvement contracts signed away from the contractor's regular place of business are legally required to include a three-business-day right to cancel — if that clause is missing, that's worth asking about before you sign.
What projects typically cost, so you can sanity-check a bid
These are rough national US averages — actual costs vary widely by region, materials, and the scope of your specific project, so treat them as a starting point for comparison, not a quote.
- Kitchen remodel: roughly $20,000–$65,000 for a mid-range to major remodel, with a national average around $27,000.
- Bathroom remodel: commonly $12,000–$25,000 for a mid-range remodel, with a broader range of $2,500–$30,000 depending on scope.
- Deck: pressure-treated wood typically runs $2–$5 per square foot, cedar $3–$7 per square foot, and composite decking $25–$54 per square foot installed.
- Painting: interior work is typically $2–$6 per square foot ($1,000–$3,000 for an average room, more for a whole house), and exterior painting is typically $1.50–$4 per square foot.
Roofing costs vary even more than most projects, driven heavily by material, pitch, and local labor rates — it's one of the projects where getting three in-person quotes matters most, since an accurate number really can't be estimated without someone measuring your actual roof.
Keeping your search organized
Comparing quotes, license numbers, and insurance certificates across three or four contractors gets messy fast, especially for a project as big as a kitchen or a roof. The My Home Genius app keeps a photo record of your home so you can share an accurate scan and cost estimate with contractors instead of a rough guess, and its Pros on Demand feature matches you with a vetted local contractor when a project is too big to DIY — so you're starting the conversation with someone who's already been checked, not a stranger who showed up at your door.