Free reference · 10 items · Save before you sign
10 things to verify before hiring a PNW contractor.
Most residential contractor disputes trace back to one of these ten things going unchecked. Run through this list before signing — every item links to where to look up the answer. Takes about 30 minutes for a contractor you're seriously considering. Free, no signup.
Item 01 of 10
WA L&I contractor license — verify it's active
Why it matters: Washington requires every contractor doing $500+ of residential work to be registered with Labor & Industries. Working with an unregistered contractor means no recourse if work is defective or unfinished. Their license is also where you check past complaints.
How to check: Look up by company name OR L&I registration number. The status field should say ACTIVE. Check the bond + insurance fields too (next two items).
WA L&I Contractor Verify →Item 02 of 10
Surety bond — verify amount + status
Why it matters: Bond protects you if the contractor breaches the contract. General contractors need $12,000; specialty contractors need $6,000. The bond should be ACTIVE on the same L&I lookup page from item 1.
How to check: On the L&I verify page, scroll to the BOND section. Check status (ACTIVE) and amount. Save the surety company name in case you need to file a claim later.
Item 03 of 10
General liability insurance — minimum $250K
Why it matters: If their crew damages your house — wall, foundation, electrical — their general liability covers repair. Without it, you absorb the cost. Most reputable PNW residential contractors carry $1M minimum.
How to check: Ask for a Certificate of Insurance (COI). The producer's name + policy expiration should be on it. Call the insurance company listed to verify the policy is current — contractors sometimes hand over expired COIs.
Item 04 of 10
Workers' compensation — if they have employees
Why it matters: If a worker is injured on your property and the contractor doesn't carry workers' comp, you can be liable. Sole proprietors can opt out, but a contractor showing up with a crew should carry it.
How to check: On the L&I verify page, check the WORKERS COMP section. Status should be ACTIVE. If status is EXEMPT, confirm with the contractor they're working as a sole proprietor with no employees.
Item 05 of 10
Written quote with line-item breakdown
Why it matters: A lump-sum quote ("$15,000 for the bathroom remodel") hides where money goes. A line-item quote ("materials: $4,800, labor: $7,200, permits: $400, contingency: $2,600") lets you compare bids and spot pricing games.
How to check: Ask for the quote in writing with separate lines for: materials, labor, permits/inspections, contingency (5-10%), and any specialty subs. If the quote is verbal or a single number, you can't comparison-shop.
Item 06 of 10
Permit handling — who pulls it and who's responsible
Why it matters: Most renovation work requires a permit. The permit holder is the entity responsible to the AHJ for code compliance. If YOU pull the permit (as the homeowner), the contractor's mistakes become YOUR code-violation liability.
How to check: Insist the contractor pulls the permit under their L&I license. If they refuse, that's a yellow flag — usually means they're not licensed for that scope. Confirm the AHJ assignment on the main lookup page above.
Look up your AHJ →Item 07 of 10
References — 3 jobs from the past 12 months, similar scope
Why it matters: Old references (5 years ago) and dissimilar references (commercial vs. residential) hide current crew quality and current scope competence. Recent + similar references catch contractors whose quality slipped or who took on work outside their wheelhouse.
How to check: Ask for three reference homeowners from the past year, ideally similar scope (panel upgrade if you're doing a panel upgrade, etc.). Call all three. Ask: "Would you hire them again?" — listen for hesitation, not just the answer.
Item 08 of 10
Google reviews — read the 1-stars
Why it matters: The 1-star and 2-star reviews tell you HOW a contractor handles things going wrong. The 5-stars are easy. Failure-mode reviews are where you learn whether they ghost when there's a callback or stand behind their work.
How to check: Sort the contractor's Google reviews lowest-first. Read every 1-2 star from the past 18 months. Look for patterns: "never returned calls," "crew damaged X and refused to fix," "left job incomplete." One bad review = noise. A pattern = signal.
Item 09 of 10
Payment terms — small deposit, milestone-based
Why it matters: Washington caps contractor deposits at $1,000 OR 10% of the contract, whichever is LESS, on residential work over $1,000. Contractors asking for 30-50% upfront are either undercapitalized (will struggle to finish) or running off with deposits.
How to check: Standard milestone schedule: 10% deposit, 25% at framing/rough-in, 25% at finish-in, 25% at substantial completion, 15% held for punch-list. Adjust by scope but never let prepayment exceed work-in-place.
Item 10 of 10
Lien waiver — required at each payment
Why it matters: If the contractor doesn't pay their subs or material suppliers, those parties can lien YOUR house even though you paid the contractor. Lien waivers from each payment milestone block that exposure.
How to check: At each milestone payment, get signed lien waivers from the contractor AND each major sub/supplier. Two types: conditional (waiver effective when check clears) and unconditional (waiver effective on signature). Use conditional for ongoing milestones, unconditional only at final.
What this isn't
Not legal advice. Not a substitute for a written contract.
This is a starting-point reference for typical residential contractor verification in Washington state. Specific situations — high-value remodels, multifamily work, cross-border contractors, owner-builder projects — have additional steps and may require legal counsel. For active disputes already in progress, contact a Washington real-estate or construction attorney.
Sister tools
Other free PNW homeowner tools.
Built by Jalen Builds alongside the PNW contractor cluster: