12 Red Flags to Watch Out For When Hiring a Contractor

You’ve heard the stories: contractors who disappear mid-project, mismanage budgets, or leave homes in chaos after demolition. Unfortunately, it happens more often than you’d think. When you’re investing in a renovation, you need more than craftsmanship—you need reliability, accountability, and transparency.

At House of Savoy, we’ve worked with dozens of contractors over the years, and we’ve seen the patterns that separate the trustworthy from the ones you should run from. Here are twelve red flags to watch out for when hiring a contractor and how to know you’re working with the right one.

1. They Avoid Sharing Documents

The very first thing you should request is a contractor’s license and proof of insurance. This protects you in the event of damage or injury on-site.

✅ A professional will provide these documents promptly.
🚩 Hesitation, or worse, excuses, is your cue to move on.

2. Their Experience Doesn’t Align With Your Project

Not all experience is created equal. Building a new home is very different from renovating an existing one. You want a contractor who knows how to handle existing structures, surprises, and timelines.

✅ They can show you past projects of a similar size and scope.
🚩 They send nothing, or their portfolio looks like a series of DIY fixes.

3. They Can’t Provide References

Online reviews are a great starting point, but nothing replaces hearing firsthand from past clients.

✅ A reputable contractor will share at least three references—past and present—who can speak to reliability, communication, and quality.
🚩 Avoidance, vague answers, or one lukewarm testimonial are red flags.

4. There’s No Pricing Transparency

Trustworthy contractors provide detailed, written estimates. These should clearly outline what’s included, what isn’t, and how allowances work.

✅ Estimates are professional, specific, and easy to understand.
🚩 A single lump sum with no breakdown is a recipe for change orders and surprise costs later.

5. Their Communication Is Inconsistent

How a contractor communicates before you hire them tells you how they’ll handle your project.

✅ Responsive, clear, and organized. They use contracts, timelines, and change orders.
🚩 Slow responses, vague answers, or a handshake “agreement” instead of proper documentation.

6. They Don’t Have a Consistent Team

Ask who will actually be working in your home. Contractors who rely on a stable, licensed crew and long-term trade relationships deliver better quality and accountability.

✅ A consistent team, often employed directly or through established partnerships.
🚩 Random subs pulled in as needed—meaning your project becomes one of many fighting for time.

7. They Pressure You to Sign Quickly

A contractor who pushes you to sign a contract right away often has something to hide—whether it’s vague terms, missing details, or a desire to lock you in before you notice red flags. Good partnerships are built on clarity, not pressure tactics.

✅ A professional will give you time to review the contract and encourage you to ask questions.
🚩 High-pressure tactics or “limited-time offers” to get you to commit on the spot.

8. They Ask for Too Much Upfront

It’s common for contractors to request a deposit before work begins, but asking for too much upfront is a serious warning sign. Once payment is made in full, there’s little incentive for them to finish the job to your satisfaction.

✅ A fair deposit of 20–40% is standard, with additional payments tied to milestones.
🚩 Requests for full payment—or more than 50%—before work even begins.

9. They Offer No Project Schedule

Without a written schedule, there’s no way to hold your contractor accountable to deadlines. A lack of planning usually leads to delays, budget overruns, and frustration.

✅ A reliable contractor will outline key milestones and timelines before work starts.
🚩 Vague promises like “we’ll get it done soon” with no schedule in writing.

10. They Can “Start Tomorrow”

Quality contractors are in demand, and their schedules reflect that. If someone says they can start immediately, it usually means they don’t have steady work—or they’re overpromising to secure your project.

✅ A reputable contractor will have a realistic start date that accounts for preparation and planning.
🚩 Promises to start “tomorrow” without clear details on availability or resources.

11. Their Price Seems Too Good to Be True

If one bid comes in dramatically lower than the rest, it’s usually not a bargain—it’s a problem. Cheap quotes often lead to corner-cutting, change orders, or subpar workmanship.

✅ Competitive pricing that aligns with other professionals in your area.
🚩 A suspiciously low estimate that undercuts the competition by a wide margin.

12. Your Gut Says No

At the end of the day, you’ll be working closely with your contractor for months—sometimes longer. If something feels off during your conversations, don’t ignore it.

✅ A contractor who makes you feel comfortable, respected, and heard.
🚩 Unease, mistrust, or any lingering doubt that keeps you second-guessing.

Final Thoughts

Hiring the right contractor takes more than a quick Google search. It’s about knowing what to look for—and what to avoid. These twelve red flags to watch out for when hiring a contractor are pivotal in preventing hiring mistakes. When you recognize these red flags early, you save yourself stress, money, and regret. The right contractor isn’t just a builder; they’re a partner in bringing your vision to life.