Hiring a contractor for home improvements can be stressful and uncertain. Stories of unfinished jobs, unexpected costs, and communication breakdowns are all too common, so it's no surprise that many homeowners struggle to find the right professional for their projects. To help out, we conducted a study to explore common contractor problems, their financial and emotional impact, and how homeowners can make better hiring decisions.
In this article, you'll learn about the most frequent contractor mistakes, the red and green flags to watch for when hiring, and practical tips to help you avoid costly and time-consuming issues. We'll also share actionable advice for verifying a contractor's credibility and ensuring your next project runs smoothly.
Key Takeaways
- More than 1 in 4 (28%) homeowners who have hired a contractor experienced issues.
- 45% of homeowners experienced contractor mistakes that cost $1,000 or more to fix, and 34% said the issue took over a month to resolve.
- The average contractor mistake took 21 days and cost $902 to fix.
- Nearly 1 in 10 (8%) took legal action to resolve the issue, and 8% attempted to fix mistakes via YouTube DIY tutorials.
- 12% of homeowners refuse to hire another contractor after a bad experience and resolve to DIY future projects.
- 41% do not read online reviews before hiring contractors.
Contracting Nightmares & Consequences
Hiring a contractor can be a process, and for many homeowners, it doesn't always go as planned. Below are the most common contractor issues, their financial and time-related impacts, and how negative experiences shape future decisions.
More than 1 in 4 homeowners (28%) who have hired a contractor have experienced issues. The most frequently cited problem was contractors leaving jobs unfinished, reported by 31% of homeowners. Another issue, failing to follow design specifications, led to the highest repair costs: an average of $1,350.
Contractor mistakes were often costly, with 45% of homeowners saying these errors required $1,000 or more to fix. On average, these mistakes cost $902 to address and took 21 days to resolve. More than a third of homeowners (34%) needed more than a month to fix the problems.
Negative experiences with contractors also influenced homeowners' future decisions. After a bad experience, 12% of homeowners refused to hire another contractor and instead committed to DIY future projects going forward.
A few of the homeowners who had contractor issues (8%) took legal action to resolve them. Another 8% attempted to resolve issues themselves, relying on YouTube tutorials to DIY the necessary fixes. This can save a lot of money, but some home remodeling jobs should be left to the pros.
Contractors' Green Flags and Red Flags
Choosing the right contractor can make or break a home improvement project. These are the top warning signs and positive traits homeowners look for when hiring contractors, along with a common mistake many have made during the hiring process.
The most frequently reported contractor red flags were poor communication (31%) and unexpected costs popping up (24%). On the other end of the spectrum, homeowners identified excellent communication (60%) and transparent pricing (59%) as the top green flags signaling a trustworthy contractor.
Besides looking for green flags, homeowners have used the following tactics when vetting a new contractor.
Despite often being clear indicators of quality, 41% of homeowners admitted they don't read online reviews before hiring a contractor. This oversight may increase the likelihood of encountering red flags and missing out on contractors with strong reputations for positive traits.
Tips and Warning Signs to Look For When Hiring a Contractor
Hiring the right contractor requires careful research and attention to detail. Below are some practical tips for homeowners, warning signs to watch out for, and how to verify a contractor's credibility before starting a project:
Contractor Red Flags To Watch Out For
- Unrealistically low bids: Cheap bids often lead to poor quality work, unexpected cost increases later, or even a scam.
- Lack of licensing or insurance: Contractors who cannot provide proof of licensing and liability insurance should be avoided.
- Negative online reviews or lack of portfolio: A poor reputation or absence of past work examples can signal unreliability.
- Missed deadlines before the project starts: Frequent tardiness or slow communication during the hiring phase may indicate future delays.
- Vague contracts: Contractors who push unclear agreements or avoid specifying details should raise concerns.
- Large upfront payments: Demanding substantial payments before work begins is a red flag for potential scams or financial instability.
Best Practices for Homeowners Hiring Contractors
- Prioritize communication: Choose a contractor who responds promptly and answers questions thoroughly. Clear, regular communication is key to a successful project.
- Ask for a detailed contract: Ensure the contract specifies timelines, costs, materials, and contingencies for delays. Avoid vague agreements.
- Check references: Request at least three references from past clients and contact them to learn about their experiences.
- Check online reviews: Use platforms like Google, Yelp, or Angie's List to gauge a contractor's reputation and reliability.
- Verify licensing and insurance: Request copies of their license and liability insurance, and confirm their validity with local authorities or licensing boards.
- Inspect their portfolio: Review past projects to evaluate quality and scope. When possible, visit completed projects in person.
- Interview in person: Meet the contractor to assess their professionalism, communication skills, and attention to detail.
- Request a written estimate: A professional contractor should provide a detailed, itemized estimate to avoid misunderstandings about costs.
Confidently Hire Your Next Contractor
Hiring the right contractor is essential to ensuring your home improvement project stays on time, on budget, and meets your expectations. By recognizing red flags like poor communication and vague contracts and prioritizing green flags like transparent pricing and strong references, homeowners can reduce the risk of costly mistakes.
Ultimately, preparation is key. Verify licensing and insurance, check online reviews, and request detailed contracts to protect your investment. Best practices like these will help you avoid common pitfalls and set your next project up for success and less stress.
Methodology
We surveyed 1,000 homeowners to explore experiences with hiring contractors. Of the respondents, 78% had hired a contractor in the past five years. Only these respondents were shown.
About JW Surety Bonds
Whether you're a contractor looking to fulfill licensing requirements or a homeowner seeking peace of mind, surety bonds play a vital role in protecting both parties. Visit JW Surety Bonds to learn more about our services and how we can support your next project.
Fair Use Statement
Noncommercial use of this data is allowed if proper credit is given through a link to this page.

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