Chapter 37 Exercises: Finding and Vetting Contractors
These exercises build a practical contractor vetting system you can use for any project. Complete them in order.
Exercise 37-1: Identify Your State's Contractor License Lookup Portal (20 minutes)
What you'll do: Find the official license lookup system for contractors in your state and practice using it.
- Search "[your state] contractor license lookup" and identify the official state website (avoid third-party sites — go directly to the official government portal)
- Record the URL and bookmark it
- If you have a contractor you've used before, look them up — verify their license is active, covers the right trade, and has no disciplinary history
- If you don't have a contractor to look up, search for 2-3 contractors in your area who advertise a specific service (roofing, HVAC, plumbing) and verify their license status
Deliverable: A note in your home records file with the license lookup URL and the names/license numbers of any contractors you verified. Doing this once familiarizes you with the process so it's fast on every future project.
Exercise 37-2: Referral Network Mapping (30 minutes)
What you'll do: Identify your current referral sources for contractors and assess any gaps.
For each major trade category, answer: do you know someone who has personally hired a contractor for this type of work and could make a referral?
Trade categories: - Plumber - Electrician - HVAC / heating contractor - Roofer - General contractor / remodeler - Painter (interior or exterior) - Water damage restoration
For any category where you don't have a personal referral source: - Ask 3-4 trusted people in your network (neighbors, family, coworkers) if they have a recommendation - Check whether your local plumbing, electrical, or building supply store can provide a referral - Check one professional association directory (NARI for remodelers, PHCC for plumbers/HVAC, NRCA for roofing)
Deliverable: A referral list — even partial — for the most likely trades you'll need. Add verified names and phone numbers to your emergency binder's Contractor tab (if you built it in Chapter 36's exercises).
Exercise 37-3: Request and Verify a Certificate of Insurance (30 minutes — requires a current contractor engagement, or can be done as research)
What you'll do: Practice the insurance verification process.
Option A (if you have a current or upcoming contractor project): 1. Ask the contractor for a Certificate of Insurance for both general liability and workers' compensation 2. Verify the certificate: check policy dates (are they current?), check coverage limits (is GL at least $500,000 per occurrence?), check the insurer name 3. Call the insurer directly to confirm the policy is in force
Option B (research exercise if no current project): 1. Download a sample ACORD certificate of insurance (available free online — search "sample ACORD 25 certificate of insurance") 2. Practice reading it: identify the insurer name, policy numbers, coverage types, effective dates, expiration dates, and coverage limits 3. Write a brief description of what you would ask if you were calling the insurer to verify this certificate
Deliverable: A written record (for Option A) or annotated sample (for Option B) showing you can read and verify a COI. Add the verified contractor's insurance information to your contractor file.
Exercise 37-4: Design Your Interview Questionnaire (45 minutes)
What you'll do: Create a reusable one-page contractor interview questionnaire tailored to a specific project type.
Choose a project type you're likely to undertake in the next 1-3 years (kitchen remodel, bathroom update, HVAC replacement, roof replacement, exterior painting, etc.).
Draft a one-page questionnaire with 8-10 questions specific to that project type, incorporating the core questions from Section 37.4: - Similar projects and references - Who will be on-site - Permit process - Subcontractor relationships - Payment structure - Warranty - Local references
Add 2-3 project-specific questions: for roofing, ask about manufacturer certifications and underlayment specifications. For HVAC, ask about SEER ratings and equipment brands. For remodeling, ask about project management process and how they handle unforeseen conditions.
Deliverable: A printed or saved questionnaire you can pull out for any future contractor interview in this project category. Test it by reviewing: does each question have an identifiable "good answer" that you'd recognize?
Exercise 37-5: Red Flag Recognition Quiz (20 minutes)
What you'll do: Test your ability to recognize contractor red flags in realistic scenarios.
For each scenario, identify the red flag(s) present and describe what you would do:
Scenario A: A roofing contractor knocks on your door after a hailstorm and offers to assess your roof damage for free. He says he has crews in the area today and can start your repair tomorrow if you sign now. He offers to handle your insurance claim paperwork. He doesn't have a business card but gives you a handwritten phone number.
Scenario B: A contractor you found online has 47 five-star reviews, all posted within the last three months. The reviews are effusive but generic. When you call, he says he can do the job for 40% less than any competitor because "I don't have overhead like the big companies." He asks for 60% upfront, cash or Venmo.
Scenario C: An HVAC technician visits for an annual service call. He says your heat exchanger has a hairline crack and you need a full system replacement immediately — $11,000. He has a financing option he can sign you up for right now. He says the crack is a serious CO risk and you shouldn't run the system tonight.
Scenario D: A contractor you found through a neighbor referral provides a detailed, reasonable-seeming bid. When you ask about permits, he says, "For this type of work, we don't usually pull a permit — it saves time and the permit fee. I've done 50 of these and never had an issue."
Deliverable: For each scenario, a written identification of red flags and a specific response strategy. Compare your answers with Section 37.5.
Exercise 37-6: Call Three References (60 minutes total — 20 minutes each)
What you'll do: Practice calling contractor references using the reference call script from Section 37.4.
If you have a current contractor engagement, ask for three references and call all three. If you don't, choose any contractor you might consider for a future project and request references.
Use the reference call script: - "Did the project finish on time?" - "Did the final cost match the original bid?" - "Were there surprises — things that came up that you wish you'd known ahead of time?" - "How did the contractor handle problems when they arose?" - "Would you hire them again without hesitation?"
Pay attention to: pauses before "yes" on the final question, any hedging, any specific complaints that are glossed over, and the specificity of praise ("they did a great job" vs. "they were on site every day, they called me back within an hour every time I had a question, and they came back three times after completion to fix small things we noticed").
Deliverable: Written notes on each reference call. Your overall assessment of whether the reference calls increase or decrease your confidence in this contractor.
Exercise 37-7: Identify Your Professional License Exposure (30 minutes)
What you'll do: Determine which types of work in your home legally require a licensed professional vs. which can be done by a homeowner.
Research your state's contractor and homeowner-exemption rules for: - Electrical work (new circuits, panel work, adding outlets) - Plumbing (new drain lines, water supply lines, gas connections) - HVAC (new installations, refrigerant work) - Structural modifications (removing walls, adding openings) - Roofing
For each category, find your state's specific rule on whether the homeowner can legally do this work themselves, and whether a permit is required when homeowners do their own work.
Deliverable: A one-page reference sheet noting your state's homeowner exemption rules for each major trade category. Add this to your home records file. This will inform your DIY vs. Pro decision-making for every future project.
Exercise 37-8: Evaluate a Specialist — Get One HVAC Quote (60-90 minutes)
What you'll do: Practice the specialty contractor evaluation process from Section 37.6 with a real HVAC maintenance visit.
Schedule an annual HVAC maintenance/tune-up from a contractor you haven't used before (typical cost: $80-$150 for a single system). During the visit:
- Ask to see the technician's EPA 608 certification card
- Ask for the contractor's license number and look it up while the technician is on-site
- Ask the technician to explain in plain language what they're checking and why
- If the technician recommends any repair or replacement, ask for: (a) a written diagnosis, (b) what would happen if you deferred the repair, and (c) whether repair vs. replacement is an option
After the visit, get at least one additional quote for any recommended work before committing.
Deliverable: Written notes from the visit including: technician's EPA certification status, any recommendations made, and your assessment of whether the technician's communication was transparent and professional.
Exercise 37-9: Build Your Long-Term Contractor File (45 minutes)
What you'll do: Create a simple record-keeping system for contractors you've used and those you've vetted.
For each contractor you have a positive experience with, create a record containing: - Company name, principal name, and direct phone number - License number and state (verified) - Insurer name (for verification calls) - Date of last work - Brief description of work performed - Notes on what went well - Any warranty terms still in effect
A simple spreadsheet, a notes app, or a section in your home records binder all work equally well. The key is consistency: update it every time you use a contractor.
Deliverable: A contractor file with at least one completed entry. This file will grow over time into one of the most valuable resources a homeowner can have.
Exercise 37-10: Practice the Three-Bid Process for a Real or Hypothetical Project (2-3 hours)
What you'll do: Go through the complete three-bid process for either an actual upcoming project or a hypothetical one you've been considering.
Steps: 1. Write a plain-language scope of work (2-4 paragraphs describing the work, materials expectations, and any specific requirements) 2. Identify three contractors through the methods in Section 37.2 (referral, association directory, supplier referral — not all from the same source) 3. Verify each contractor's license before scheduling an interview 4. Conduct in-person interviews using your questionnaire from Exercise 37-4 5. Receive written bids 6. Build a comparison matrix noting price, scope differences, and any exclusions
Deliverable: A completed bid comparison matrix. Even if this is a hypothetical exercise, going through the process once makes every future iteration significantly faster and more confident.