How to choose a contractor: 7 red flags to watch for
I've been a contractor for 11+ years. I've also seen a lot of homeowners burned by bad contractors — people who pay a deposit and never see work happen, or work that falls apart in a year.
Here are the 7 red flags I tell my friends to watch for.
Red flag #1: No license or won't share HIC number
In Massachusetts, any home improvement work over $500 requires the contractor to be registered with the state as a Home Improvement Contractor (HIC). They get a number. That number is public and searchable.
Ask any contractor for their HIC number. A real contractor gives it in seconds. A fake one hesitates, deflects, or claims they don't need one because they're "just a handyman."
Verify at: mass.gov/business/hic-search
My HIC number is #216217. Look it up any time — it's public info.
Red flag #2: Won't show insurance certificate
General liability insurance protects you if the contractor damages your home. Workers comp protects you if a worker gets hurt on your property.
A legit contractor has both. And they'll show you a certificate (ACORD form) with active coverage dates. If they can't produce one within an hour of asking, walk away.
Red flag #3: Wants cash and no paperwork
"Cash discount" sounds good. But cash-only means no paper trail, no tax records, no warranty enforcement. If work goes wrong, you have no recourse.
Any contractor over $500 in work should give you a written contract before work starts. Cash-only handshake deals are how homeowners get burned.
Red flag #4: Massive deposit demand
MA law caps contractor deposits at 1/3 of the contract price. Some contractors ask for 50% or more up front. That's illegal in MA — and usually the sign of someone with cash flow problems who needs your money to fund another job.
If someone demands 50% up front for a $10,000 job, that's $5,000 you may never see again if they walk.
Red flag #5: Price too good to be true
Three quotes: $12K, $15K, $8K. Which do you pick?
Everyone's instinct is $8K. But that's almost always the wrong choice. The cheap bidder either:
- Missed something in the scope
- Isn't planning to include materials/labor line items
- Is unlicensed and uninsured
- Plans to hit you with change orders once work starts
Real quotes cluster within 15-20% of each other. When one is dramatically lower, dig deeper.
Red flag #6: No written contract, or a vague one
MA law requires HIC contracts to include:
- Date, contractor info + HIC number
- Owner info + work address
- Detailed scope of work
- Total price
- Payment schedule
- Start and end dates
- Change order provisions
- 3-day right to cancel notice
- Home Improvement Contractor Arbitration Program clause
If a contractor gives you a one-page contract that says "renovation: $15,000" — that's not a contract. That's a napkin note.
Red flag #7: Bad reviews or no reviews
Check Google, Yelp, Thumbtack, and Better Business Bureau. Look at:
- Overall rating (4.5+ is what to expect from a real pro)
- Volume (10+ reviews is meaningful)
- Recent reviews (last 6 months should have activity)
- How they respond to negative reviews (real contractors respond calmly and professionally)
New contractors have to start somewhere, so no reviews isn't a deal-breaker if the other signals are good. But zero online presence PLUS other red flags = walk away.
What a legit contractor always provides
- HIC number on request (and it verifies)
- Insurance certificate (COI) on request
- Written itemized estimate
- MA-compliant contract before work starts
- Deposit of 1/3 or less
- References from recent jobs
- Real online presence (Google Business, reviews)
- Written warranty on workmanship
Green flags I love to see
- Answers messages within 24 hours
- Shows up on time to the estimate
- Asks good questions about the scope
- Provides a written estimate within 48 hours
- Explains what's included and what's not
- Doesn't pressure you to sign the same day
Bottom line
Choosing a contractor is one of the biggest financial decisions in home ownership. Take your time. Get 3 written quotes. Verify licenses. Check insurance. Read reviews.
The right contractor makes your project a great memory. The wrong one makes it a legal nightmare. The signals above tell you which is which.
Talk to me
If you're interviewing contractors for a project in Western Mass, I'd love to be one of them. My HIC #216217 is verifiable, insurance certificate is available on request, and I always give written estimates.