Before you hire or buy checklist

Protect Yourself Before Signing or Paying Hiring contractors or purchasing large-ticket items can involve significant financial risk. Taking time to verify details before signing a contract or making payment can help prevent costly mistakes. Use this checklist before hiring contractors, vendors, or service providers. Step 1 — Verify the Business Before hiring anyone, confirm the business is legitimate. Checklist ☐ Verify the business name matches all paperwork ☐ Confirm the company is properly licensed ☐ Verify how long the business has operated ☐ Confirm the business address is legitimate ☐ Request proof of insurance ☐ Request bonding documentation (if applicable) ☐ Verify the business owner's name Red Flags 🚩 Business name inconsistencies No physical location Refusal to provide insurance Recently created company promising large projects Step 2 — Research the Company Reputation Do not rely on a single source. Checklist ☐ Review online ratings across platforms ☐ Check Better Business Bureau records ☐ Review state licensing board records ☐ Search court records ☐ Request recent customer references ☐ Contact references directly Red Flags 🚩 Multiple unresolved complaints Similar repeated complaints Lawsuits involving unfinished work Step 3 — Review the Contract Carefully Never sign vague or incomplete contracts. Checklist ☐ Ensure full scope of work is listed ☐ Confirm materials are specified ☐ Verify start and completion dates ☐ Review payment schedule ☐ Confirm refund policies ☐ Review warranty terms Red Flags 🚩 Blank spaces in contracts Missing scope details Pressure to sign quickly Step 4 — Understand Payment Terms Payment structure often signals risk. Checklist ☐ Avoid large upfront payments ☐ Use traceable payment methods ☐ Confirm milestone payments ☐ Request receipts Red Flags 🚩 Requests for full payment upfront Cash-only requests Pressure for immediate payment Step 5 — Document Everything Documentation protects you. Checklist ☐ Save all emails ☐ Take photos before work begins ☐ Keep payment records ☐ Save copies of contracts