Before you sign a contractor’s quote

A signed quote is a contract. Before you sign, check four things: it says in writing what you agreed to, the contractor is licensed and insured, you are not paying for work that hasn’t happened, and you know how to back out. Each of those is advice from the FTC or a state consumer protection office, linked where it appears.

How many quotes should you get?

More than one. The FTC says to get several estimates, not to pick the lowest bidder just because it is lowest, and to ask why when the estimates are far apart (FTC). New York’s attorney general says to contact at least three contractors and get each estimate in writing (New York AG).

What should the written quote say?

Get it in writing, even if your state doesn’t require it (FTC). Before you sign, check that it has:

• the contractor’s name, address, phone number and license number;
• the work to be done and the materials;
• a start date and a finish date;
• the price and when each payment is due;
• your right to cancel, in writing.

The FTC lists the first, third and fifth, and says an estimate should describe the work, the materials, the finish date and the price (FTC). New York adds the timeline and the payment schedule (New York AG).

Don’t sign anything you haven’t read, anything in a language you don’t understand, or anything with blank spaces (FTC).

How do you check the license and insurance?

Look the license up with your state or county, and ask the contractor for proof of insurance (FTC). Write the license number on the quote and keep the link to the state’s lookup page with it, so you can look again later. In New York, you could be held liable if your contractor doesn’t carry the insurance the law requires (New York AG).

How much should you pay up front?

Never the whole job. The FTC says not to pay the full amount up front, notes that some states limit how much a contractor can ask as a down payment, and says to hold the final payment until the work is done and you are satisfied (FTC). New York says never to give a cash deposit before you sign a contract (New York AG).

Each time you pay, ask for a lien waiver: a paper saying the workers and suppliers won’t come to you for money (Wisconsin DATCP). In New York, a contractor or subcontractor who goes unpaid may have a claim against your property (New York AG).

Can you cancel after you sign?

Sometimes. The FTC’s Cooling-Off Rule gives you three days to cancel certain sales made at your home, including when you invited the salesperson in. You can cancel for a full refund until midnight of the third business day after the sale. Sales under $25 at your home aren’t covered (FTC).

Who gets the permit?

Ask the contractor whether the work needs a permit, and check with your local building department before the work starts (New York AG). Ask who will get it. Minnesota’s attorney general says the contractor should get the permits, and that a homeowner who gets them is responsible for them (Minnesota AG).

What are the warning signs?

The FTC names these (FTC):

• someone knocks on your door because they are “in the area”;
• pressure to decide right now;
• a demand to be paid in full up front, or only in cash;
• asking you to get the building permits.

How Homaic does it

Add the quote to the project it’s for. Homaic reads each line, marks what your record shows you already have, and lists the questions still open on the quote, ready to send to the contractor. A permit question goes to your building department instead: whether the work needs a permit, and who gets it.