1. Define the scope before you hire a contractor
Write down what you want done, the finishes you expect and your budget range. Estimating quantities and costs with our calculators helps you recognize an unrealistic bid. The clearer the scope, the more comparable the bids.
2. Verify license and insurance
- License: in NYC, check the DCWP Home Improvement Contractor license; on Long Island, Nassau or Suffolk County licenses; in NJ, CT and PA, the state registration. See our state licensing comparison.
- Insurance: request certificates for general liability and workers' compensation directly from the insurer or broker.
- Lead-safe work: for pre-1978 homes, painting and renovation firms must follow the EPA RRP rule.
3. Get at least three written bids
Ask each contractor to price the same scope with line items: demolition, materials, labor, permits, disposal and allowances. Very low bids often leave things out. Ask who will pull permits — the contractor should, and the permit should be in place before work starts.
4. Use a detailed written contract
The contract should include the contractor's legal name, address and license number, a detailed scope, materials and brands, start and completion dates, the total price and payment schedule, change-order procedures, warranty terms and your cancellation rights. New York's General Business Law has specific requirements for home improvement contracts — your contractor should be familiar with them.
5. Tie payments to progress
- Keep the deposit modest and tie later payments to completed, inspected milestones.
- Never pay in full before work is complete.
- Ask for lien waivers from the contractor and major suppliers as you pay.
- Hold a final payment until the punch list is complete and permits are signed off.
Red flags when you hire a contractor
- Door-to-door solicitation, especially after storms
- Cash-only or large upfront payment demands
- Pressure to sign immediately or skip permits
- No physical address, license number or insurance certificate
- A bid far below the others with no explanation
This guide summarizes official rules for general information. It is not legal advice. Rules and fees change — confirm with the agency before you act.
Frequently asked questions
How many quotes should I get?
Three is a common rule of thumb, based on the same written scope so they can be compared fairly.
How do I check a contractor license in NYC before I hire?
Use DCWP's license lookup and confirm the business name and license number match your contract.
Who should pull the permit — me or the contractor?
Normally the contractor (and, in NYC, the design professional files plans). A contractor who asks you to pull permits in your name is shifting responsibility to you.
What should a contractor's insurance include?
At minimum, general liability and workers' compensation. Ask to be named as certificate holder and verify the policy with the insurer.
