The Homeowner's Guide to Vetting, Choosing, and Negotiating With Contractors

How to Choose and Work With Contractors (For Any Project)

This guide assumes you’ve been matched with contractors through Modernize, but no matter how you’re getting quotes, there are some clear, actionable steps you can take to ensure you wind up with the right professional for your project.

Your goal is simple:

1. Get clear, comparable bids in the same format so you can compare them apples-to-apples.
2. Choose a contractor you trust who is going to run the project with good communication and documentation.
3. Have as few surprises as possible on cost, timeline, and quality.

Here are the most common culprits that make home improvement projects stressful that we want to help you prevent:

• Misaligned scope (you thought X was included; they priced Y).
• Budget blowups due to vague allowances and change orders.
• Timeline drift caused by missing decisions, materials, or permits.
• “Communication tax” (lots of stress for basic updates).

Let’s cover what you should have in hand as you get quotes.

1) Write a One-Page Project Brief For Your Home Improvement

Before a contractor can give you a quote, they’ll want to be aligned with you on outcome. Creating a one-pager you can either give directly to contractors or talk through with them on the phone ensures that every contractor you speak with has the exact same information, which in turn means you get comparable quotes.

Here’s how to create it.

Start With Your “Project Basics”

• Goal: What problem are you solving (and what would success look like)? For example, the problem could be that your air conditioner is broken, and success would be getting a new unit you are confident is the right one for your home installed on a quick timeline.
• Must-haves vs. nice-to-haves: What’s non-negotiable? You may want extra storage space in your bathroom remodel if you can work it into the budget, but maybe you’re not willing to budge on having a walk-in shower.
• Budget comfort zone: This should be a realistic range, not a single number. You should tell the contractor what you are comfortable spending on the project; combined with your must-haves, this will give them a good sense of project scope.
• Timeline constraints: If you have to have a home improvement completed by the time family comes to visit or if you’re hoping the bulk of the work can be done during a week you won’t be home much, tell the contractor up front to see if they can accommodate that in their schedule.
• Quality level: Practical/durable vs. premium finishes. Everyone has different areas of a project they are willing to spend a little more on and areas where they want to keep the budget down. For instance, maybe the frame material for your window replacement matters less to you than having insulated glass.

Include the Extra Info Contractors Value

You know best how you want your home to function. Here’s what else to include to make sure contractors understand your pain points and your vision for the end result.

• Scope summary (what you want done).
• Photos and notes (areas involved, access constraints).
• Known issues (past leaks, uneven floors, old wiring, etc.).
• Any materials you already chose.
• Desired start window.

With this one-page project brief complete, you are ready to start vetting contractors.

2) Vet Your Contractors

The goal in your first phone call is to see if your project capacity and expectations work for the contractor, get a sense for overall “fit” between you, and see examples of their work and/or get references. We will provide a first phone call script below, but let’s quickly cover why that script includes what it does.

A) Verify the Essentials

Ask each contractor for:

• License number (if required for your trade/area)
• Proof of insurance: general liability + workers comp
• Business name/address (to match your contract)

If someone is vague or resistant, slow down the conversation. This is a red flag.

B) Confirm Project Fit and Capacity

This is where you’ll make sure the contractor has the expertise needed and time available to take on your project. In the script below, we have questions you should ask to help get clear answers for this line item.

C) Check References

You should always speak with some past clients/customers. Depending on the type of home improvement you’re doing, this may mean seeing photos of a project (like a bathroom remodel), checking out the end result in person (like seeing a siding installation or roof replacement), or simply speaking to homeowners about their experience working with the contractor (like for an HVAC system replacement).

You should ask to see:

• 1 current job (even a quick exterior look + short homeowner chat)
• 2 recent jobs (last 6–18 months)
• 1 older job (2–5 years) for durability

Not sure what to ask these references about? Here are some recommendations:

• Was the final cost close to the original plan? If not, why?
• How were changes handled? Were they written and agreed to ahead of time?
• Was communication consistent?
• Would you hire them again?

First Call Script and Agenda (20–30 minutes)

Use this script on the first call with each contractor to get comparable answers.

1) Quick Intro (2 minutes)

• “I’m getting multiple quotes for [your project]. I’m looking for clear scope, realistic timeline, and strong communication. I have a one-page project brief I can share with you.”

2) Confirm Project Fit (5 minutes)

Go through your project brief together. Your contractor may have some clarifying questions or advice. Then ask:

• “How many similar projects have you done in the last 12 months?”

• “What’s the most common surprise you see on homes like mine, and how do you handle it?”

• “Who would supervise day-to-day, and how many jobs are they running at once?”

3) Scope Alignment (8–10 minutes)

This is when you should start getting details about how the contractor approaches projects and what it will be like to work with them. Ask:

• “Can you confirm what’s included and what’s excluded for this project?”

• “What prep/protection do you include (think covering floors, protecting landscaping, dust control)?”

• “Is cleanup and debris removal included? What’s the daily cleanup standard?”

• “What assumptions do you make about existing conditions?”

• “What’s your communication cadence with your customers? How often will I get updated about progress or next steps?”

4) Quote Structure (5–7 minutes)

You want your quotes to be apples to apples. That means you need quotes in the same format covering the same details. Ask for these specifics:

• “Will your bid be itemized with inclusions, exclusions, and allowances?”

• “In your quote, please list allowances with dollar amounts and what they cover (material only vs. material + labor).”

• “What decisions/material selections do you need from me—and by when—to protect the schedule?”

5) Timeline and Scheduling (3–5 minutes)

Ask:

• “What’s your realistic start window?”

• “What’s the estimated duration for completing this project? What could shift it?”

• “What’s your typical work schedule (days/hours), and how do you handle weather/material delays?”

6) Contract and Process (5 minutes)

Make sure you understand exactly who is responsible for what. Ask:

• “Who pulls permits and coordinates inspections (if needed)?”

• “What’s your change order process? (Written, priced, approved before work?)”

• “What warranty do you provide, and how do callbacks work?”

• “What payment schedule do you use (deposit + milestone payments)?”

7) Close the Call With Clear Next Steps (1 minute)

• “Great—please send your itemized quote, proof of insurance, license info (if applicable), and three to four references (including one current job if possible). What’s the best way to follow up and when should I expect the estimate?”

3) Get Quotes You Can Compare

The goal here is to avoid getting a quote that is only the total project cost. What costs are adding up to produce that total?

Ask For an Itemized Quote

This should include:

• Scope of work (what’s included)
• Exclusions (what is not included)
• Estimated timeline (start window + duration)
• Payment schedule tied to milestones
• Permit responsibility (who pulls, who pays)
• Cleanup and debris removal plan
• Warranty/callback policy
• Change order process

Then, you’ll be able to compare, say, one contractor’s cost for cleanup and debris removal to another’s. You’ll be able to see exactly where the cost differences are coming into play.

Watch Out For Allowance Traps

An allowance is a placeholder line item in a quote for something that hasn’t been chosen yet (common for things like tile, fixtures, cabinets, flooring, lighting). It’s basically saying: “We’re budgeting $X for this—final cost may change once you pick the actual products.” This is very common – and, in fact, necessary – in contractor quotes because hardly anyone is starting a home improvement project with all the materials already chosen.

An “allowance trap” is when the allowance is set too low (or is worded too vaguely) so that the bid looks cheaper upfront. But you almost inevitably pay more later through change orders.

What This Looks Like in Real Life

• Quote says: “Tile allowance: $2/sq ft”
  But the tile you actually like is $6–$10/sq ft.
  Result: the “cheap” bid balloons once you choose materials.

• Quote says: “Fixture allowance: $500”
  But that might not cover a shower valve + trim + showerhead + tub filler (or it covers only some of it).
  Result: surprise costs.

• Allowance is listed, but it’s unclear whether it covers materials only or materials + labor.
  Result: you pay twice (or argue about what was “included”).

How to Avoid This (Quick Checklist)

When you see an allowance, ask these four questions:

1. Exactly what does the allowance cover? (List items included.)

2. Is it materials only or materials + installation/labor?

3. What happens if I pick something above/below the allowance? How is the difference calculated?

4. Can you show an example product that fits the allowance (so you know it’s realistic)?

Compare Bids Using “Apples-to-Apples” Questions

When quotes differ, don’t guess why. Ask directly. Here are some examples of how to do that:

• “Can you confirm you included X, Y, and Z?”
• “Is debris removal included?”
• “What assumptions are you making about what you might find once work starts?”
• “What’s the plan if you discover hidden damage?”

More About Evaluating Contractor Quotes

You can read our blog post series that dives into the specifics of evaluating quotes based on the home improvement project you’re pursuing.

• How to evaluate HVAC replacement quotes.
• How to evaluate bathroom remodel quotes.
• How to evaluate gutters quotes.
• How to evaluate window replacement quotes.
• How to evaluate roofing quotes.
• How to evaluate siding quotes.

4) Choose a Contractor + Printable Contractor Scorecard

You should be wary of any bids that came in significantly higher or lower than the others. Beyond that, a good choice is usually the contractor who communicates clearly, provides a detailed scope, is transparent about exclusions, sets realistic timelines, and has a clear written process for changes.

The Contractor Scorecard

Having trouble deciding? You can use Modernize’s contractor scorecard to help you evaluate your choices side by side. Here’s a look at what’s included.

Download the contractor scorecard

Want to Read More Tips on Choosing the Best Contractor?

Modernize has blog posts on tips you should consider for picking a contractor based on the type of home improvement you’re considering.

• How to choose a window replacement contractor.
• How to choose a gutter contractor.
• How to choose an HVAC contractor.
• How to choose a cabinet contractor.
• How to choose a bathroom remodeler.
• How to choose a siding contractor.
• How to choose a roofing contractor.

5) How to Negotiate With Contractors

Negotiation works best when it reduces risk and ambiguity.

Some of the best things to negotiate to help you button up your budget and reduce your stress levels are:

• Scope precision: Tighten what’s included/excluded. Ask what could be omitted to get the quote into the price range you’re comfortable with.
• Materials plan: Who buys what? Who stores the materials until they’re needed?
• Allowance levels: Align them to your tastes.
• Payment schedule: Tie payments to milestones.
• Timeline expectations: Define key dates, work hours, and decision deadlines.
• Change order rules: Ask for change orders to be written, priced, and approved before work continues.
• Warranty details: What’s covered and for how long?

Helpful Phrases to Use

• “Can you quote two options—a cost-focused version and a premium version?”
• “If we keep quality the same, where can we reduce cost?”
• “If I’m flexible on start date, can that improve pricing?”

Be Cautious With These “Savings”

Carefully consider if a contractor is the right choice for you if they suggest saving money by:

• Skipping permits (creates major risk).
• Paying large amounts upfront.
• Making changes midstream without written pricing.

More Advice on How to Negotiate With Contractors

Here are a few blog posts on how to negotiate with contractors who specialize in your home improvement.

• Negotiating cost with window replacement contractors.
• Negotiating cost with your bathroom remodeler.
• Negotiating cost with roofing contractors.

6) Put It In Writing: The Contract Should Make the Job Boring

A good contract prevents conflict and stress because it removes guessing.

Contract Must-Haves

You’ll recognize just about everything on this list from what we’ve written above. Make sure your contract includes:

• Detailed scope + materials/specs (and what’s excluded).
• Start window + estimated duration.
• Payment schedule tied to milestones.
• Permit responsibility.
• Insurance requirements.
• Cleanup/protection expectations.
• Change order process (written and approved before work).
• Warranty terms.
• Who supervises the job.
• Completion definition and punch list process.

If it matters, it belongs in the contract (not just a text).

More About Contracts

You can read more about the two most common types of contracts you are likely to see during your project.

• What is a fixed point contract?
• What is a time and materials contract?

7) Project Kickoff: Work the Plan

If you set communication expectations during your vetting call, make sure it gets followed. You should know:

• Who is your main point of contact?
• How often will you get updates (and in what format)?
• How will decisions be documented?

For larger and more time-consuming remodels, we recommend:

• 10–15 minute check-in 2–3x/week.
• Weekly walkthrough.
• Photo log (especially before anything is covered up).

Control Change Orders (This is Where Budgets Blow Up)

House rule for this and all future home improvement projects: No written change order = no work on that change.

Every change order should include:

• Description of change.
• Cost not just as a line item but with context of whether this is adding or subtracting from the bid you were given.
• Schedule impact (+/− days).
• Any permit/material impacts.
• Your approval (email is okay; signed is better).

Do Milestone Checks (Don’t Wait Until the End)

You may want a big reveal for your finished project, but you need to be seeing the work up-close at several key stages.

Common milestones:

• After demo (confirm scope still matches reality or discuss if any damage like leaks were found during demo).
• Before walls/ceilings close (confirm rough work and key details).
• Before finishing stages (paint, flooring, fixtures).
• Substantial completion walkthrough.
• Final punch list and closeout.

8) Closeout: Finish Strong With a Punch List

A punch list is the final checklist of small (and sometimes not-so-small) items that still need to be finished, fixed, or adjusted before the project is considered complete.

Think of it as: “Everything we need to punch out before final payment.”

What Goes on a Punch List

Common examples across most home projects:

• Touch-up paint, caulk gaps, small chips/scratches.

• Misaligned doors/drawers, sticky locks, loose handles.

• Missing trim pieces, uneven grout lines, cracked sealant.

• Cleanup issues (dust, debris, leftover materials).

• Performance issues (a window doesn’t latch, a fan rattles, a vent whines).

• Items that were promised but not installed (hardware, screens, caps, covers).

When Do You Make a Punch List?

Usually during a “substantial completion” walkthrough. This is when the job is mostly done and usable, but not perfect yet. You can also add items as you notice them toward the end, but it’s best to consolidate into one clear list.

Why It Matters

• It creates shared agreement on what’s left.

• It prevents “We’re done” vs. “No you’re not” disagreements.

• It lets you keep final payment leverage until the last details are truly finished.

How to Write a Punch List

For each item, capture:

• Location (e.g., “Hall bathroom – shower”).

• Issue (“Caulk missing at corner joint”).

• Photo (optional but helpful).

• Owner (who fixes it).

• Target date fixed.

Best Practice With Payment

Hold the final payment (or a small holdback) until:

• Punch list items are completed, and

• Any required final inspections are passed (if permits were involved).

Red Flags to Take Seriously (at Any Stage)

• Refuses to provide proof of insurance/license info.
• Vague scope with lots of “TBD” but no process to clarify.
• Wants large payments before meaningful progress.
• Says permits are unnecessary when they likely might be.
• Poor communication before the job begins.
• Change orders handled verbally after work is done.

Scripts/Phrasing Homeowners Request the Most

Many homeowners are nervous about their project, have never completed a major home improvement, and/or don’t know the industry lingo. Here are the scripts homeowners like you have requested. We hope they empower you to ask for what you need, no matter what your experience level is.

Requesting a Comparable Quote

“So I can compare bids fairly, can you send an itemized quote that includes inclusions/exclusions, allowances, an estimated timeline, permit responsibility, cleanup plan, payment schedule tied to milestones, warranty, and change order process?”

Handling a Change Order

“I’m open to that change. Please send a written change order with price and schedule impact, and I’ll approve it or deny it before you proceed.”

Setting Communication Expectations

“Can we align on communication? Who’s my main contact, and how often should I expect updates from them? What’s the best way to document decisions?”

Your Home, Improved

Renovations, remodels, and repairs can be expensive and stressful. We sincerely hope this guide has given you everything you need to handle all the steps that come with choosing a contractor and signing a contract so you can quickly get to the next part: enjoying your home upgrade.