contractor Hiring Checklist

Building or remodeling a home is one of the largest financial decisions you will ever make, yet many homeowners spend more time researching a vehicle purchase than vetting the contractor entering their home. Taking time to ask the right questions upfront protects your property, your budget, and your peace of mind.

At a Glance: Critical Vetting Steps

• Verify Licensing & Insurance: Ensure your contractor holds an active state license and carries both General Liability and Workers' Compensation insurance.

• Confirm Local Reputation: Choose established builders with 3–5 years of local history, strong supplier relationships, and verifiable client references.

• Require a Detailed Contract: Never permit work to begin without a written contract covering scope, materials, payment milestones, and warranties.

10-Point Contractor Hiring Checklist

1. Is there a permanent local business address?

 Established local builders maintain strong relationships with regional banks, trade suppliers, and lumberyards throughout Northern Minnesota and Northwestern Wisconsin.

2. How long has the company been in business?

 It typically takes 3 to 5 years to establish a financially sound construction business. You want a builder who will be around long after construction is finished to honor warranties.

3. Does the contractor carry complete insurance coverage?

 Always request proof of General Liability and Workers' Compensation insurance. If an uninsured worker is injured on your property, you could be held financially liable.

4. Can the builder provide recent client references? 

Ask for names and phone numbers of clients from the past 12–24 months. Ask those homeowners: "Would you hire this contractor again?"

5. Have you inspected both finished and active jobsites?

 Look closely at completed homes for quality of finish work, and visit an active jobsite to evaluate cleanliness, safety, and organization.

6. Is communication clear and transparent?

 Construction is a multi-month partnership. Ensure your contractor listens, answers questions thoroughly, and establishes clear communication channels from day one.

7. Will you receive a detailed, written contract?

 A professional contract clearly outlines project scope, specific materials, allowances, payment schedules, change-order protocols, and estimated completion dates.

8. Is the project bid realistic?

 Be cautious of bids that come in significantly lower than others. Exceptionally low prices often indicate substandard materials, skipped permits, or financial strain.

9. Have you checked complaint databases?

 Review the contractor’s standing with the Better Business Bureau (BBB) and state licensing boards for any unresolved disputes.

10. Is the contractor a member of the Arrowhead Builders Association?

 ABA members pledge to uphold professional standards, adhere to a strict code of ethics, and stay informed on changing building codes.

State Contractor License Requirements

Minnesota License Regulations In Minnesota, residential builders, remodelers, and roofers are required by law to display their Minnesota License Number on all contracts, advertisements, vehicles, and websites. Licensed contractors must carry liability insurance, complete mandatory continuing education annually, and participate in the Minnesota Contractor Recovery Fund. You can look up a builder's license status directly through the Minnesota Department of Labor and Industry (DLI).

Wisconsin License Regulations In Wisconsin, residential contractors must hold a Dwelling Contractor license and a Dwelling Contractor Qualifier license through the Wisconsin Department of Safety and Professional Services (DSPS)to pull building permits for initial construction or major structural remodeling. Note: Wisconsin-based builders performing work across the state line in Minnesota must hold an active Minnesota license.Find a Trusted Local Contractor

Don't leave your project to chance. Contact the Arrowhead Builders Association today, and we will connect you with licensed, reputable builders, remodelers, and trade professionals across the region.