Hiring a general contractor is a major step in any construction or renovation project. Whether you’re building a home addition, remodeling your kitchen, or renovating a commercial space, the right contractor can make the process smooth and stress-free. However, choosing the wrong one can lead to missed deadlines, budget overruns, poor workmanship, and even legal headaches. That’s why it’s crucial to recognize warning signs before committing to a contractor. In this blog, we’ll explore some of the most common red flags you should be aware of when hiring a general contractor Edison.

Lack of Proper Licensing and Insurance

One of the most critical red flags to watch for is a contractor who doesn’t have the necessary license or insurance. Licensed contractors have met certain qualifications and follow local building codes and regulations. Insurance, especially general liability and workers’ compensation, protects you from being held liable if a worker is injured on your property or if property damage occurs.

If a contractor cannot provide proof of a valid license or insurance, it’s a serious risk. They may be trying to cut corners, or worse, they could disappear midway through the project without any legal accountability. Always request copies of these documents and verify their validity through your local licensing authority.

Requests for Large Upfront Payments

It’s standard practice for contractors to ask for a deposit before starting work. However, if a contractor demands a large percentage of the total cost upfront — say, more than 30% — that should raise concerns. This might indicate cash flow problems or a lack of professionalism. In the worst cases, it could be a scam where the contractor takes the deposit and disappears.

Instead, opt for a clear, milestone-based payment plan. Reputable contractors typically tie payments to specific stages of completion, ensuring both parties stay aligned throughout the project.

No Written Contract

A written contract is essential when hiring a general contractor. It protects both the homeowner and the contractor by clearly defining the scope of work, payment terms, materials to be used, project timeline, and other expectations. If a contractor is unwilling to put things in writing or insists that a verbal agreement is enough, that’s a big red flag.

Without a detailed contract, you have little to fall back on if things go wrong. Everything — from the smallest tasks to the overall project cost — should be documented to avoid disputes and misunderstandings later on.

Suspiciously Low Bids

While everyone wants to save money on a renovation or construction project, a bid that’s significantly lower than others should be approached with caution. Extremely low bids may indicate that the contractor is cutting corners, using substandard materials, or underestimating the job to win the contract and add charges later.

Sometimes, these contractors may rely on change orders during the project to increase the final cost. Always compare multiple bids and ask for itemized estimates so you can clearly see what’s included — and what’s not.

Poor Communication or Unprofessional Behavior

Another major red flag is poor communication. If a contractor is difficult to reach, avoids answering questions, or provides vague responses, you’re likely to face bigger issues down the road. Good contractors keep their clients informed and make themselves available for updates, clarifications, or concerns.

Also watch for pushy behavior — if someone is pressuring you to sign a contract on the spot or discourages you from seeking other bids, they may not have your best interests in mind. Trustworthy contractors understand that this is a significant decision and will respect your need to evaluate all your options.

No References or Negative Reviews

An established general contractor should be able to provide references from previous clients. If a contractor refuses to give you names or contact information for past customers, or if they say they’re “too new” to have references, proceed with caution. They may be trying to hide a poor track record.

Additionally, check online reviews, ratings, and complaints on platforms like Google, Yelp, or the Better Business Bureau. A pattern of negative feedback or unresolved issues is a sign that others have had bad experiences — and you might too.

Lack of Permits or Attempts to Skip the Process

Most construction projects require permits to ensure that the work complies with local building codes. A contractor who tells you that permits aren’t necessary, or who asks you to pull the permits yourself as the homeowner, is not operating professionally. This could lead to legal issues, fines, or problems if you try to sell your home in the future.

Permits are there to protect you and ensure the work meets safety standards. A reputable contractor will always handle the permit process or at least guide you through it.

Unclear or Changing Scope of Work

During the initial consultation, a contractor should be able to define a clear scope of work. If the scope keeps changing without explanation or if the contractor is vague about what is and isn’t included, it can lead to confusion and unexpected costs later.

A changing scope is sometimes used as a tactic to get the job and then increase the price as the work progresses. Make sure the contract includes specific details about the project’s scope, deliverables, and what would constitute a change order requiring additional payment.

Final Thoughts

Hiring a general contractor is a big decision, and doing your due diligence upfront can save you time, money, and stress. Trust your instincts — if something feels off during your initial conversations or if a contractor shows signs of being evasive, pushy, or unprofessional, it’s better to walk away and continue your search.

By watching out for the red flags mentioned above — lack of license, large upfront payments, no contract, poor communication, lowball bids, lack of references, and attempts to bypass permits — you’ll be in a much stronger position to hire someone who will deliver quality work and stand behind it.

Taking the time to research, ask the right questions, and get everything in writing can help ensure your construction project is a success from start to finish.