How to Choose a Remodeling Contractor ($1,000 Deposit Rules)

How seven states and New York City regulate remodeling contractors, plus the federal lead paint rule. Rules change; check your state's own page before you sign.

How do I check a remodeling contractor's license?

Find out whether your state or city licenses or registers remodelers, then look up the number the contractor gives you on that agency's site before you sign. California's Contractors State License Board runs an online Check A License tool and requires a license for any job of $1,000 or more in labor and materials since January 1, 2025. Massachusetts requires Home Improvement Contractor registration for work on existing owner-occupied homes of one to four units, with a lookup on its contractor hub. Pennsylvania registers home improvement contractors through the Attorney General at hicsearch.attorneygeneral.gov, and New York City licenses them through the Department of Consumer and Worker Protection.

Registration is not a quality rating. Pennsylvania's Attorney General says registration "is not an endorsement, recommendation or approval", so look up complaints too. Check the trades as well: kitchens and baths almost always involve plumbing and electrical work, and those are licensed separately in many places. In New York City, plumbing permits must be filed by a Licensed Master Plumber; the electrician license by state table covers the electrical side. City pages for Los Angeles, New York and Philadelphia list the local permit and license steps.

What questions should I ask a remodeling contractor before hiring?

Ask for the license and trade licenses, who pulls the permits, how payments follow the work, and how changes are priced; CSLB and the FTC publish most of these questions.

• What is your license or registration number, and in what name? The FTC says the contract should carry it.
• Who pulls the permits? The contractor should. The FTC lists asking you to get the permits as a scam sign. HomeAdvisor puts bathroom permits at $100 to $1,000.
• Who does the plumbing and electrical work, and are they licensed? Many cities license those trades separately from the remodeler.
• Is the house built before 1978, and is your firm lead-safe certified? The EPA requires certification for paid work that disturbs paint in those homes.
• What happens if you find asbestos or rot? The EPA says not to saw, sand, scrape or drill suspect material and to hire an accredited asbestos professional.
• How is the payment schedule tied to the work? CSLB says not to let payments get ahead of the work.
• How are change orders handled? CSLB says changes should be in writing and signed by both parties.
• What contingency should I set aside? HomeGuide suggests 10% to 20% for a bathroom.
• How long will it take, start to finish? HomeAdvisor puts a kitchen at 6 to 10 weeks of construction plus about 4 weeks of planning.
• What does your written estimate include? The FTC says it should describe the work, materials, completion date and price.
• Can I see recent projects like mine and talk to those owners?

What are the red flags? Warning signs when hiring a remodeler

Walk away from a contractor who wants a large deposit, cash, or a signature today, or who asks you to pull the permits; the FTC and state regulators list each of these.

• A deposit over your state's limit. California caps it at $1,000 or 10%, whichever is less; New York City says pay no more than 25% up front; the Indiana Attorney General says no more than one third.
• Cash only, or all of it up front (FTC; NYC DCWP says never pay in cash).
• Pressure to sign today (FTC).
• Leftover materials from a job down the street (FTC).
• Asks you to get the building permits (FTC).
• Steers you to a lender it knows (FTC).
• No license or registration where one is required, or a number that does not match the company name.
• A blank or vague contract. The FTC says every blank should be filled in and every promise written down.

How much should a remodeling contractor charge for the first visit?

The cost guides price the remodel, not the estimate visit; HomeAdvisor's June 2026 data puts a typical bathroom remodel at about $12,152 and a kitchen at $26,990 on average.

National figures from cost guides, shown side by side and not averaged.

If a contractor charges for design work before you sign, ask whether it is credited against the job. HomeGuide puts general contractor fees at $50 to $150 an hour or 10% to 20% of the project. Full figures are on bathroom remodel cost and kitchen remodel cost.

What should be in a remodeling contract, and how big can the deposit be?

The contract should name the contractor and its license, the work, materials, price, payment schedule, dates and your right to cancel; California caps the down payment at $1,000 or 10%, whichever is less.

• Name, address, phone and license number, and estimated start and completion dates (FTC).
• Scope and materials room by room, with brands and models where they matter.
• A payment schedule by phase, with no payment ahead of the work done (CSLB).
• The deposit, within your state's limit where one exists.
• Who pulls and pays for permits, and who schedules inspections.
• Change orders in writing, signed by both parties (CSLB).
• Your right to cancel. The FTC says the contract should state your right to cancel within three business days if you signed at home; Illinois gives 3 business days on home repair contracts signed at home.
• Written when the law says so: over $500 in California, over $1,000 in Massachusetts and Illinois, over $150 in Indiana.

The FTC adds: never make the final payment until the work is done and you are satisfied with it.

Where do I complain about a remodeling contractor?

Start with the state board or registration office, which can discipline the contractor and, in some states, pay part of your loss from a recovery fund.

• California: CSLB's complaint process.
• Massachusetts: the Home Improvement Contractor program, whose Guaranty Fund can pay up to $25,000 on an unpaid award.
• Pennsylvania: the Attorney General's home improvement hotline, 1-888-520-6680.
• New York City: DCWP, through 311.
• Arizona: the Registrar of Contractors, whose Recovery Fund pays up to $30,000 per claimant per residence.
• Nevada: the State Contractors Board Residential Recovery Fund, up to $40,000 per claim.
• Anywhere: the state attorney general or a local consumer protection office (FTC). For storm work, see storm damage contractor laws by state.

The call line on this page connects you to an independent local remodeling contractor that serves your area and pays us for the referral; hours vary. We do not license, inspect or rate these companies, so run the same checks on whoever answers. How calls work. Ask for its license or registration number on the call.

What to do before you hire a remodeling contractor

1. Find your state and city rules in the table above, including any deposit limit.
2. Get at least three written estimates that each list the same scope, so they compare.
3. Look up each license or registration, and check the trade licenses for plumbing and electrical.
4. If the house was built before 1978, ask for the firm's lead-safe certification.
5. Read the contract for dates, the payment schedule, permits and change orders.
6. Pay the deposit by check or card, never cash, and keep every receipt.