Top 10 Mistakes Homeowners Make When Hiring a Contractor

Hiring a contractor can feel like a daunting task. Whether you're planning a full kitchen remodel or just adding some much-needed storage space, choosing the right contractor is critical to the success of your project. Unfortunately, many homeowners make the same mistakes over and over again, leading to costly delays, unfinished work, or worse—total disasters.

Don’t worry! We’re here to help you avoid these pitfalls. In this post, we’ll walk you through the top 10 mistakes homeowners make when hiring a contractor and, more importantly, how to avoid them.

1. Choosing the Lowest Bid Without Considering Quality

Everyone loves a good deal, but when it comes to hiring a contractor, cheapest isn’t always best. Contractors who offer the lowest bid may be cutting corners to save costs, which can result in poor workmanship, cheap materials, or surprise fees later on.

How to Avoid This Mistake:

• Look for value, not just price. Compare the level of detail, materials, and labor provided in each bid.

• Ask questions about why a contractor’s estimate is significantly lower than others.

• Check past work and reviews to see if they’ve delivered quality on budget.

Pro Tip: A contractor in towns like Roseland, Madison, or West Orange who offers a much lower price than others may be cutting corners or lack experience.

2. Not Checking References or Reviews

Skipping the step of checking references or reading reviews is like buying a car without taking it for a test drive. It’s crucial to know whether previous clients were happy with the contractor’s work, communication, and reliability.

How to Avoid This Mistake:

• Always ask for references from past clients.

• Contact those references and ask about the quality of work, timeliness, and any issues that came up.

• Read online reviews on platforms like Yelp or Google Reviews.

Fun Fact: La Vaca General Contractors proudly serves homeowners across Morris, Essex, and Bergen counties, with glowing reviews from clients in towns like Morristown, Verona, and Parsippany.

3. Not Getting Everything in Writing

Verbal agreements might work in friendly conversations, but when it comes to hiring a contractor, you need everything in writing. Without a written contract, you have no legal protection if the contractor doesn’t fulfill their promises.

How to Avoid This Mistake:

• Insist on a detailed contract that outlines the scope of work, timeline, materials, payment schedule, and any warranties.

• Make sure change orders (modifications to the original plan) are also put in writing to avoid misunderstandings.

Pro Tip: The contract should be signed by both parties and include a clause for handling disputes or delays.

4. Failing to Verify Licensing and Insurance

Not all contractors are created equal, and those without the proper licenses and insurance can expose you to big risks. If something goes wrong, an unlicensed contractor may leave you without legal recourse, and if they’re uninsured, you could be on the hook for damages.

How to Avoid This Mistake:

• Ask for proof of license and insurance.

• Verify licenses with your state or local licensing board.

• Ensure they have both liability insurance (in case of damage to your property) and worker’s compensation insurance (in case of injury to workers).

In New Jersey, contractors need to be licensed and registered. La Vaca General Contractors holds all necessary licenses and insurance, protecting homeowners throughout Morris and Essex counties.

5. Not Clarifying the Payment Schedule

You should never pay the full amount upfront. Contractors typically ask for a deposit, but if they’re requesting 50% or more before work begins, it’s a red flag. Not agreeing on a clear payment schedule can leave you vulnerable to unfinished work or sudden price hikes.

How to Avoid This Mistake:

• Agree on a payment schedule that is tied to project milestones.

• Never pay more than 10-20% upfront. The remainder should be paid in installments as work progresses.

• Hold back the final payment until the project is 100% complete to your satisfaction.

Pro Tip: A contractor’s financial stability is a good sign of their reliability. If they need a large sum upfront, they might be using your money to finish another job.

6. Skipping the Permit Process

In many cases, home improvement projects require permits from your local municipality. Some contractors might suggest skipping this step to save time or money, but doing so could result in fines or even force you to undo completed work.

How to Avoid This Mistake:

• Always check with your local building department to see if permits are required.

• Ensure the contractor is responsible for pulling permits. This should be included in your contract.

In towns like Verona, West Orange, and Parsippany, building permits are often required for projects like home additions or major remodels. La Vaca General Contractors always handles the permitting process to ensure projects meet local regulations.

7. Failing to Communicate Clearly

Miscommunication is one of the main reasons for project delays or dissatisfaction. If you’re not clear about your vision, or if the contractor isn’t keeping you updated, problems are likely to arise.

How to Avoid This Mistake:

• Set clear expectations for how often you will receive updates.

• Be specific about your goals and design preferences, and don’t be afraid to ask questions.

• Establish a point of contact for regular updates throughout the project.

Fun Fact: At La Vaca General Contractors, we make communication a priority, keeping homeowners in Roseland, Morristown, and Madison informed every step of the way.

8. Hiring Based on a Friend’s Recommendation Alone

While a friend’s recommendation can be helpful, it shouldn’t be the only factor you consider when hiring a contractor. Your friend’s project may have been simpler, smaller, or very different from yours, and what worked for them might not work for you.

How to Avoid This Mistake:

• Consider multiple contractors and get quotes from at least three.

• Evaluate each contractor based on their experience with projects similar to yours.

• Don’t skip steps like verifying licenses or checking reviews, even if your friend highly recommends the contractor.

9. Not Planning for Contingencies

No matter how well you plan, unexpected issues—like discovering mold behind the walls or having materials delayed—can arise. Failing to plan for these contingencies can lead to stress, delays, and blown budgets.

How to Avoid This Mistake:

• Set aside 10-15% of your budget as a contingency fund for unexpected expenses.

• Ask your contractor how they handle change orders, and make sure any changes to the project are documented and signed off on before proceeding.

10. Not Asking About Subcontractors

Many contractors hire subcontractors for specialized work like plumbing or electrical. If you don’t know who’s doing what, you could end up with unexpected delays or extra costs.

How to Avoid This Mistake:

• Ask who will actually be doing the work—will the contractor’s team handle everything, or will they use subcontractors?

• Ensure the subcontractors are licensed and insured if they’re performing specialized tasks.

At La Vaca General Contractors, we only work with trusted, licensed subcontractors in areas like Roseland, Madison, and West Orange, ensuring every aspect of your project is handled professionally.

Conclusion: Avoiding Mistakes Leads to Successful Projects

Hiring the right contractor can make all the difference between a smooth, successful project and a renovation nightmare. By avoiding these common mistakes—such as skipping permits, ignoring reviews, or choosing the lowest bid—you’ll set yourself up for a home improvement experience that’s on time, on budget, and done right.

At La Vaca General Contractors, we’re here to help homeowners throughout Morris, Essex, Bergen, and Union Counties, including Roseland, West Orange, and Parsippany, avoid these pitfalls. Contact us today for a detailed and transparent estimate on your next project.