Seven red flags in a contractor’s estimate
Most of these are not dishonesty. They are carelessness — which produces the same experience for you, over a longer period.
The seven
No licence or insurance number on the document
In most states you can check a licence online in under a minute. A contractor who does not put the number on their own paperwork has made that harder for no good reason.
No exclusions
Every job has things that are not included. A document that lists none has the same exclusions as everybody else’s — it just has not told you what they are.
No quantities
Without them you cannot compare this quote to any other, and neither of you has anything to point at when the scope changes.
A large deposit with no material behind it
A deposit to order cabinets is ordinary. A large deposit before anything has been ordered or scheduled is worth a direct question.
Payment stages tied to dates rather than work
"50% on 1 April" is not a milestone. "50% on completion of rough-in" is.
Pressure, or a price that expires today
Prices do expire, and thirty days is normal. Twenty-four hours is a sales technique.
No process for changes
You want a sentence saying extra work is quoted and signed before it starts. Without it, you will find out about extra work when the bill arrives.
The one that is hardest to spot
Numbers nobody measured, presented as though somebody had. There is usually nothing on the page to tell you — a paced-out figure and a taped one look identical once they are typed.
The only reliable move is to ask. "Were these measured or estimated?" is a normal, polite question, and a careful contractor has a ready answer. The uncomfortable answer is not "estimated" — it is a contractor who cannot say which.
Some tools now put this on the document. Trueline prints SCANNED across a drawing until a tape has actually been on the walls, so the honest answer is on the page rather than in a conversation. It is worth knowing that exists.
What is not a red flag
- A quote that is longer than the others. That is usually the careful one.
- A price higher than the lowest. Compare scope before you compare totals.
- Being told the job cannot be priced until a wall is opened. That is honesty.
- A contractor who charges for a detailed measured takeoff. On a large job that is a day of work.
Checking a licence, in about a minute
Most US states run a public licence lookup. Search for your state plus "contractor licence lookup" and you will usually find an official database where a number, a name or a business will tell you whether a licence is current, what it covers, and sometimes whether there have been complaints.
It costs a minute, it is not an accusation, and a legitimate contractor expects it. Requirements vary a great deal by state and by trade, so check what your own state actually requires rather than assuming.
Insurance is two different things
| Cover | What it protects |
|---|---|
| General liability | Damage to your property caused by the work |
| Workers’ compensation | Injury to their workers on your property |
These are separate policies and a contractor may carry one and not the other. Ask for a certificate of insurance rather than a number on a letterhead — a certificate comes from the insurer and states the dates the cover runs.
What to do if something is wrong
- Ask, directly and early. Most of these have ordinary explanations and the answer tells you a lot.
- Get every answer in writing, added to the estimate rather than sent in a message.
- Do not pay a deposit until the paperwork is right. It is the only leverage that exists.
- If a contractor is annoyed by any of these questions, that is itself the answer.
Questions people ask
- What are the warning signs of a bad contractor?
- On the paperwork: no licence or insurance number, no exclusions, no quantities, a large deposit with nothing ordered, payment stages tied to dates rather than work, pressure to sign today, and no written process for changes.
- How much deposit is normal?
- It varies by job and by state, and some states cap it. What matters more than the percentage is what it is for — a deposit against material that is being ordered is ordinary; a large one before anything is ordered or scheduled deserves a question.
- Should I be worried if a quote is much higher than the others?
- Compare the scope and the quantities first. Very often the higher quote includes something the others left out, and the difference disappears once you line them up.
- How do I check a contractor’s licence?
- Most US states run a public lookup — search your state plus "contractor licence lookup". You can usually check whether a licence is current, what it covers, and sometimes whether complaints have been filed. Requirements vary by state and trade, so check what yours actually requires.
- What insurance should a contractor carry?
- General liability, which covers damage to your property from the work, and workers’ compensation, which covers injury to their workers on your property. They are separate policies. Ask for a certificate of insurance from the insurer rather than a number on a letterhead.
Where this fits with Trueline
Trueline is an iPhone app that measures a room, takes it off, prices it from your own rate book and turns it into a proposal — with every length carrying whether it was scanned, drawn or measured, right onto the document a client reads. See how it works, or take the free templates and use them with whatever you already have.