Hiring a contractor is one of the biggest decisions you'll make as a homeowner or business owner. Get it right and your project goes smoothly. Get it wrong and you're dealing with delays, cost overruns, or shoddy work you'll be living with for years. Here's what to look for — and what to watch out for.
1. Verify Their License
In Utah, general contractors are required to be licensed through the Utah Division of Occupational and Professional Licensing (DOPL). You can verify any contractor's license at dopl.utah.gov. Never hire an unlicensed contractor — if something goes wrong, you have little legal recourse and your homeowner's insurance may not cover the work.
2. Confirm They Carry Insurance
A legitimate contractor carries two types of insurance:
- General liability insurance — covers damage to your property during the project
- Workers' compensation — covers their workers if someone is injured on your property
Always ask for proof of insurance before signing anything. If a contractor can't provide it, walk away.
3. Get Multiple Bids
Get at least 2–3 bids for any significant project. But don't just look at the bottom line — compare what's included. A lower bid might be missing key items that will show up as change orders later. A good contractor gives you a detailed scope of work so you know exactly what you're paying for.
4. Check References and Reviews
Ask for references from recent projects similar to yours, and actually call them. Check Google reviews, Facebook, and the Better Business Bureau. Look for patterns — one bad review can be an outlier, but multiple complaints about the same issue is a red flag.
5. Red Flags to Watch For
- Asking for large upfront payments (a reasonable deposit is 10–20%, never 50%+)
- Pressure to sign immediately or "lock in" a price
- No physical address or local presence
- Vague or verbal-only estimates
- Significantly lower bid than everyone else (usually means something is being left out)
- Unlicensed or uninsured
6. Communication Matters
Pay attention to how a contractor communicates before you even sign a contract. Do they return calls promptly? Are they clear and straightforward in their answers? The way they treat you during the bidding process is usually how they'll treat you during the project.
7. Get Everything in Writing
A detailed written contract protects both you and the contractor. It should include the scope of work, materials to be used, payment schedule, start and completion expectations, and how changes will be handled. Never proceed on a handshake alone.