3 Red Flags to Watch Out for When Hiring a General Contractor

April 8, 2025

Hiring a general contractor can be a daunting task, especially with your home or office project on the line. The wrong choice can lead to endless headaches, unexpected expenses, or even an incomplete project. While there are many reliable contractors out there, understanding which red flags to watch out for can save you from poor service and unsatisfactory results.


1. Lacking Proper Licensing and Insurance

One of the biggest red flags when hiring a general contractor is the lack of proper licensing and insurance. A qualified contractor should have all necessary licenses and carry adequate insurance to protect both themselves and you against any liabilities. If a contractor cannot provide these documents, it's a clear sign that you should look elsewhere, as working with an unlicensed contractor can result in penalties or having no recourse if something goes wrong.


2. Hesitating to Provide References or Portfolio

Another warning sign is when a contractor hesitates to provide references or a portfolio of their past work. A reliable contractor will be proud to share their previous projects and will have satisfied clients who are happy to vouch for their performance. Given the projected 9% growth in employment for construction managers from 2023 to 2033, according to the U.S. Bureau of Labor Statistics, there should be no shortage of talented contractors willing to showcase their expertise. Always make sure your potential hire has a solid track record before making any commitments.



3. Demanding High Upfront Payments

Finally, be cautious if a contractor demands unusually high upfront payments or is vague about project costs. While some initial payment is standard, high upfront demands can indicate a lack of cash flow or planning on their end, raising a red flag. A professional contractor will provide a clear, detailed estimate with transparent billing practices, allowing you to understand exactly what you're paying for at each stage of development.


Hiring the right general contractor requires due diligence and attention to detail. By being vigilant of these red flags, such as lack of proper licensure, unwillingness to provide references, and unclear financial demands, you can ensure a smooth and successful project. Remember, it's always better to spend more time researching to find a trustworthy partner than to rush and face potential setbacks. If you're looking for a reliable general contractor, contact DWV Construction, LLC today.

3 Red Flags to Watch Out for When Hiring a General Contractor
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