Contractor hiring checklist & quote comparison
By Stephen Morrison, Editor Last reviewed
Work through the checklist as you go: it saves on this device. Then compare up to three quotes side by side, with red flags marked. Every item comes from FTC guidance.
Checklist
- Knocks on your door looking for business because they’re “in the area”
- Says they have materials left over from a previous job
- Pressures you for an immediate decision
- Asks you to pay for everything up front, or only accepts cash
- Asks you to get the required building permits
- Suggests you borrow money from a lender they know
Compare quotes
Fill in what you know. Flags appear for anything the FTC warns about. Saved on this device only.
The 3-day Cooling-Off Rule
If you buy at your home, your workplace or a seller's temporary location, the FTC's Cooling-Off Rule usually gives you three days to cancel for a full refund. It also applies if you invited a salesperson to present in your home. It doesn't cover sales under $25 at your home, or under $130 at temporary locations. It also doesn't cover emergency purchases, or a visit you asked for to repair your property (though anything extra you buy on that visit is covered).
- The seller must tell you about your right to cancel at the time of the sale, and give you two copies of a cancellation form.
- Your right lasts until midnight of the third business day after the sale. Saturday counts as a business day; Sundays and federal holidays don't.
- Sign and date a cancellation form (or write a letter) and send it by certified mail, postmarked before the deadline.
- The seller then has 10 days to refund your money and return any check you signed.
Check the schedule they give you
The FTC says the contract should include an estimated start and completion date. Put each contractor's schedule into the timeline planner to see whether the inspections and lead times fit, and which tasks would hold everything up.
Not sure you need a contractor?
Run the numbers with the DIY vs hire a pro calculator, including when permits and safety rules make the decision for you.
Then plan the money
Once you have a quote you trust, add it to the project planner as a labor line. Set a contingency, and track what you actually pay against each payment milestone.
Common questions
How many contractor estimates should I get?
The FTC’s advice is to get multiple written estimates and not to automatically choose the lowest bidder. Comparing them side by side, as in the tool above, shows when one price is far from the rest so you can ask why.
How much should I pay a contractor up front?
Not the full amount. Some states cap down payments, so check with your state or local consumer agency. California, for example, says a home improvement down payment should never exceed 10% of the contract price or $1,000, whichever is less.
Can I cancel a contract I signed at home?
Often, yes. The FTC’s Cooling-Off Rule gives you three days to cancel many sales made at your home (sales under $25 aren’t covered). The deadline is midnight of the third business day; Saturday counts as a business day, Sundays and federal holidays don’t. Send the cancellation by certified mail; the seller then has 10 days to refund you. Some state laws give you more rights.
Who should pull the building permit?
The contractor. The FTC lists asking you to get the required permits as one of the signs of a home improvement scam.
What if something goes wrong?
Try to resolve it with the contractor first, and follow up any phone call with a letter by certified mail. If that fails, the FTC suggests your state attorney general or local consumer protection office, your local home builders association, local media Call For Action lines, or a dispute resolution program. Report Cooling-Off Rule violations at ReportFraud.ftc.gov.
Sources
- FTC Consumer Advice, "How To Avoid a Home Improvement Scam" (July 2022)
- FTC Consumer Advice, "Buyer’s Remorse: The FTC’s Cooling-Off Rule May Help" (September 2025)
- California Contractors State License Board, "What Should I Look for in a Contract and Binding Agreements?" (down payment limit)
Formulas and figures last checked against these sources on. Spotted an error? Tell us and we'll fix it.