Contractor red flags before you hire for a remodel

A low number is not, by itself, the warning. The Federal Trade Commission lists tactics that show up before you ever compare totals: someone at the door, a leftover-materials story, pressure to decide today, cash only, and a request that you pull the permit yourself (FTC). Use that list, then still check the license and insurance and read the estimate.

Signs the FTC names

• They knock because they are "in the area." Unsolicited door-to-door pitches are on the FTC's list. A contractor you invited is a different start.
• They have materials left over from another job. That story is a named tactic, not a reason to skip a written scope.
• They want a decision today. Pressure to sign now is the point. The FTC also says that if you sign at home, or somewhere other than the seller's permanent place of business, the contract should include a written statement of your right to cancel within three business days. That window is not a substitute for reading the scope.
• They want the whole price up front, or cash only. The FTC says not to pay the full amount up front. Some states cap the down payment. After a storm, the FTC adds wire transfers, gift cards, payment apps, and cryptocurrency to the list of payment methods scammers push (FTC, disasters). How you pay is covered in cash, Zelle, or card.
• They ask you to pull the permits. The FTC lists that as a warning sign. Who pulls each permit belongs in the contract. See what to confirm about a remodel permit.
• They steer you to a lender they know. Financing is a separate agreement. Read it on its own, and do not sign it because the contractor is waiting in the kitchen.

What to do instead

1. Start with people you know. The FTC suggests recommendations from people you trust, then a check with your state or local consumer agency and a local home builders association for complaints.
2. Look up the license where this state or city requires one. A number printed on the bid is not the record. The steps are in how to check a license and insurance.
3. Get more than one written estimate. The FTC says a written estimate should describe the work, the materials, a completion date, and the price. Do not pick the lowest number automatically. Ask why the bids differ. Line them up with the quote comparison.
4. Read the contract before anybody starts. The FTC says it should include the contractor's name, address, phone, and license number, a start and completion date, and the promises made in conversations. Blank spaces should be filled in. If your state requires more, the contract has to meet that too. California's list is one example on the CSLB site (CSLB).
5. Leave the last payment until the work is done and you are satisfied. That is the FTC's line, and it belongs in the payment schedule, not in a handshake.

A bid you cannot compare

One bid is a single number. Another lists allowances, exclusions, and who buys the fixtures. Those are not the same job. A price with no scope of work is a flag even when the contractor is licensed. So is an allowance with no dollar amount. The allowance guide shows what to ask for on those lines.

If you already signed

Write down what was promised, what you have paid, and what is actually done. Do not send the rest of the price because someone is impatient. If there is no written contract yet, start with no written contract. If the fight is already on, use what to do in a contractor dispute.

Keep the check next to the bid

RenoBinder keeps the scope, the bid you picked, and the payment schedule in one project. One room is free.

This is general information, not legal advice. Rules vary by state; for a dispute, talk to a licensed attorney or your state contractor board.

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