Hiring a contractor, without the expensive surprises.

For most residential projects a deposit of 10% to 25% of the contract price is normal, and it typically covers material ordering rather than labor. Small repairs often need no deposit at all. Several states cap residential deposits — California limits them to $1,000 or 10% of the price, whichever is less. Never pay the full amount upfront.

Three written bids for the same clearly defined scope. Fewer than three gives you no sense of the local market rate, and more than four usually just delays the project. The bids only compare fairly when each one lists the same materials, the same exclusions, and the same permit responsibility.

Generally no. A verbal price is difficult to enforce and gives you nothing to point to when the invoice comes in higher. Most states also require home-improvement contracts above a dollar threshold to be in writing. Always get the scope, price, timeline, and payment schedule in a signed written contract.

A low bid is almost always a smaller bid: thinner materials, excluded permits, no disposal, no site protection, or a crew that is unlicensed or uninsured. Once the missing items reappear as change orders, the cheap bid frequently ends up the most expensive. Compare line items, not bottom lines.

Look the license number up directly with your state or city licensing board rather than trusting a photo of a card. For insurance, ask the contractor to have their agent email you the certificate of insurance directly, and confirm both general liability and workers’ compensation are active for the dates of your project.

A defined scope with materials by brand and model, explicit exclusions, permit responsibility, a start date and substantial-completion date, a milestone-based payment schedule, a written change-order process requiring your approval, the workmanship warranty length, and lien waivers from subs and suppliers at each payment.