What should I verify on a contractor before signing the contract?

The contract-signing moment is the last point you have leverage. Once you sign and pay a deposit, recovery options narrow dramatically. The verification checklist below catches roughly 95% of preventable fraud and failure patterns.

Pre-signature checklist:

1. License board check. License number, status (must be Active), trade classification (must match the work), expiration date (must be more than 90 days out), bond status (must be current), workers' comp status (must show current account). The qualifying party name should match the person you've been dealing with. If any of these fail, do not sign.

2. Secretary of State match. The legal entity name on the contract must exactly match an active LLC, corporation, or sole proprietorship registration. Phoenix-company red flag: multiple recently dissolved entities at the same address with the same officers.

3. Court records. Search by business name AND qualifier personal name. Mechanics' liens against the contractor (subs not getting paid), breach of contract judgments, bankruptcy filings in the last 3 years. A pattern (3+ in 5 years) is a hard stop.

4. OSHA citation history. Pattern of serious or willful citations predicts crew injuries on your property and predicts a contractor who cuts corners on permits and code compliance.

5. BBB complaint pattern. Less authoritative than the regulatory records above, but read the actual complaint narratives — they reveal the contractor's failure modes (late completion, change-order surprises, communication issues).

6. Insurance certificate verification. Get a fresh COI naming you as cert holder and your project address. Call the insurer (number on the COI) to confirm policy in force, named insured matches, limits adequate (typically $1M GL minimum for residential remodels), and no pending cancellation. Confirm workers' comp policy if any employees.

7. Permit history check. Has this contractor pulled permits for similar work in your jurisdiction? BuildZoom and most municipal building departments publish permit data. Twenty closed kitchen-remodel permits is real experience; zero kitchen-remodel permits despite "kitchen specialist" marketing is a warning.

8. References. Talk to 2-3 recent customers. Ask: did the contractor finish on time? Did the final price match the bid? Were there change orders? Would you hire them again? References are self-selected by the contractor, so weight them lower than public records — but a contractor who refuses to provide any is failing the test.

Contract-specific items to check before signing:

- Scope of work specifically itemized. - Materials specified by manufacturer and grade. - Payment schedule tied to milestones, not calendar dates. - Change-order process documented (written approval required, max % change allowance). - Completion definition with a holdback (typically 10%) until final inspection. - Warranty terms (1-year minimum on workmanship is standard). - Dispute resolution (mediation/arbitration clause if applicable). - Right-to-rescind notice (federal law gives you 3 business days to cancel home-improvement contracts signed at home; state laws may extend).

Groundcheck (earthmove.io/trust) runs items 1-5 plus phoenix-company cross-reference in a single search. Items 6, 7, and 8 require direct insurer/municipal/customer contact — Groundcheck does not verify insurance certificates, does not pull permit history, and does not verify references. Run Groundcheck first to disqualify the contractor before spending time on insurance and reference verification.