What to Look For When Hiring Contractors

By Adam Bakonis and the Mercury Team

The water heater starts leaking, the air conditioner won’t turn on, or the electrical outlets stop working in one room of the house. When you need a trusted expert to perform repairs or assess these kinds of issues, who do you call? Here’s how to choose a contractor who’s reliable and can get the job done on time.

How to Find a Contractor You Can Trust

Good help can be hard to find. And while there are likely plenty of plumbing, electrical, roofing, and other repair companies in your area, how do you pick the best one? Here are a few tips on what to look for in a contractor:

Ask for referrals, and read reviews

“Start with personal referrals from friends, neighbors, or coworkers who have completed similar projects,” says Adam Bakonis, Sr. Manager, Product Management. “Online reviews can also be helpful, especially when you see a range of negative — or positive — ones across multiple platforms.” Checking ratings with the Better Business Bureau can also give you insight into complaint histories, dispute resolutions, and red flags you may not see on Facebook or Yelp.

Verify licenses and insurance

Any legitimate contractor should have the right license and insurance in your state or municipality. Licensing helps ensure minimum competency and compliance with building codes, and insurance protects you if someone gets injured or property is damaged during the project. Always ask for proof of general liability insurance and, if applicable, workers’ compensation coverage — and verify that policies are current.

Check experience with similar projects

A contractor who excels at kitchen remodels may not be the best fit for roofing or structural repairs. Ask how many similar projects they’ve completed, request photos, and, if possible, speak with past clients about their experience.

How to Choose a Contractor for Your Project

“Taking the time to vet contractors carefully can save you time, money, and stress down the line,” notes Adam Bakonis, Sr. Manager, Product Management. Here are a few things to take into consideration before hiring any contractor:

Compare multiple bids

The goal isn’t the cheapest option; it’s finding the best value for the scope and quality of work. Getting at least three bids helps you understand the true cost of your project. Be wary of estimates that are significantly lower than others, as they may signal cut corners, inferior materials, or surprise charges later.

Review contracts carefully

Any written contract from your contractor should clearly outline the scope of work, materials, labor costs, timelines, and responsibilities. Never rely on verbal agreements or handshakes. Take time to read every clause, and don’t hesitate to ask questions or request revisions before signing.

Confirm timeline and payment schedule

Contractors are notorious for underestimating timelines. Talk to your prospective hire to establish realistic start and completion dates, along with how delays will be handled. Payment schedules should be tied to project milestones — not arbitrary dates. Also, be wary of large upfront payments; instead, payments should reflect completed work.

What to Look For in a Contractor Before Signing a Contract

It’s not enough to find a contractor who knows their craft. You also want someone who prioritizes the quality of their work from start to finish. Here are a few things to consider before you ever sign a contract:

Clear communication and professionalism

Responsiveness, punctuality, and transparency during the bidding phase can give you a good indication of how the contractor will behave once work begins. Disorganization or an inability to answer questions in a timely manner may be red flags.

Written estimates and scope of work

The scope of work should specify materials, brands, finishes, and responsibilities for cleanup or disposal. Vague descriptions increase the risk of disputes later. Look for detailed, itemized estimates.

Warranty and work guarantees

Ask whether the contractor offers warranties on labor in addition to manufacturer warranties on materials. A written guarantee demonstrates confidence in workmanship and provides protection if problems arise after completion.

How Renovations Can Impact Your Home and Insurance

Home renovations can increase your property’s value, but they can also affect your home insurance coverage. Major upgrades may require adjusting your dwelling coverage limits to reflect higher rebuild costs, while permitted and completed updates or renovations may qualify you for a homeowners insurance discount.

Additionally, some renovations may introduce new risks, such as adding a pool or finishing a basement. However, renovations like upgrading electrical systems may reduce future risk. Notifying your insurer before and after major projects ensures your policy stays accurate and avoids claim complications.

Choosing the right contractor takes time, but due diligence upfront can save you significant amounts of money and stress. Whether you’re planning a full kitchen reno in your fixer-upper or need someone to tile a floor, taking a thoughtful approach can make all the difference in project outcome.

Before you plan any work or hire a contractor, call Mercury for a quote or to discuss how a remodel or renovation may impact your insurance.

FAQs About Hiring Contractors

Should I pay a contractor upfront before work starts?

Small deposits are common, but large upfront payments are a red flag. Payments should be structured around completed milestones to protect both parties.

How do I handle disputes with a contractor?

Start by referencing the contract and addressing concerns in writing. If needed, mediation services, licensing boards, or small claims courts may help resolve disputes.

Do I need permits for small home improvement projects?

Often, yes. Even seemingly minor projects, like electrical, plumbing, or structural changes, may require permits. Your contractor should handle permitting, but you, as the homeowner, are ultimately responsible for compliance.