Every day, homeowners hire contractors who seem professional—only to face disasters weeks or months later. The warning signs were there; they just didn't know what to look for.

Here are the red flags that should make you walk away from a contractor.

Red Flag #1: No Physical Business Address

What it looks like: Only provides a P.O. box or "mobile" business. Can't give you an address to visit. Why it matters: Legitimate contractors have physical locations—even if it's a home office. A contractor with no address can disappear easily if problems arise. What to do: Ask for and verify a physical business address before signing anything.

Red Flag #2: Requests Large Upfront Payment

What it looks like: Asks for 50% or more before work begins. "Need to cover materials" for excessive amounts. Why it matters: Once they have your money, their leverage disappears. Contractors who demand large upfronts may:

Use your money for other projects
Not complete your project
File bankruptcy with your money

Normal range: 10-30% deposit depending on project size. Never more than the cost of materials plus reasonable mobilization.

Red Flag #3: No Written Contract

What it looks like: "Don't worry about paperwork, we'll figure it out as we go." Verbal agreements only. Why it matters: Without a written contract, you have no recourse if:

Work isn't completed
Quality is poor
Prices change
Timeline extends

What to do: Insist on a detailed written contract before any work begins.

Red Flag #4: Significantly Lowest Bid

What it looks like: Price is 30-50% below other estimates with no clear reason why. Why it matters: Extremely low bids often mean:

Cutting corners on materials
Using unqualified labor
Not including all costs (they'll add later)
Can't actually complete the work profitably
Desperation (often a sign of trouble)

Reality check: If something seems too good to be true, it is.

Red Flag #5: Pressure to Decide Immediately

What it looks like: "This price is only good today." "I have another client interested." Urgency to sign now. Why it matters: Legitimate contractors understand you need time to:

Compare estimates
Check references
Review contracts
Make informed decisions

Pressure tactics are manipulation techniques, not professional behavior.

Red Flag #6: Won't Provide References

What it looks like: "We're new but we do great work." "Our clients prefer privacy." Excuses for lack of references. Why it matters: Every experienced contractor has satisfied clients willing to vouch for them. Inability to provide references suggests:

No track record
Dissatisfied past clients
Something to hide

What to do: No references, no hire. It's that simple.

Red Flag #7: No Proof of Insurance

What it looks like: "Yeah, we're insured" but can't produce certificates. Promises to provide proof "later." Why it matters: Without insurance:

You're liable if workers are injured
Damage to your property isn't covered
You may be sued for accidents

What to do: Request certificates of insurance and verify with the insurance company.

Red Flag #8: Cash-Only Requests

What it looks like: Offers discount for cash. Won't accept checks or cards. Asks for payment in cash. Why it matters: Cash-only often indicates:

Tax evasion
No paper trail (protects them, not you)
Possible legal or financial problems
Lack of legitimate business operations

What to do: Always pay in a documented way (check, card) that creates a record.

Red Flag #9: Door-to-Door Solicitation

What it looks like: Shows up unsolicited offering services. "I noticed your roof while working next door." Storm chasers after weather events. Why it matters: Legitimate contractors rarely need to solicit door-to-door. This tactic is common among:

Scam artists
Fly-by-night operations
Low-quality contractors

What to do: Never hire from unsolicited visits. Research and choose your own contractors.

Red Flag #10: Won't Pull Permits

What it looks like: "Permits just add cost and delay." "Your neighbors didn't get permits." Suggestions to skip permitting. Why it matters: Permits exist for safety and:

Unpermitted work may not be up to code
Can create problems selling your home
Insurance may not cover unpermitted work
You can be fined by the municipality

What to do: Insist on proper permits. Good contractors handle this automatically.

Red Flag #11: Vague Scope and Pricing

What it looks like: "Around $15,000" without details. General descriptions without specifics. "We'll figure out materials as we go." Why it matters: Vague proposals lead to:

Surprise costs
Disputes about what's included
Lower quality than expected
Budget overruns

What to do: Demand itemized, detailed proposals with specific materials and prices.

Red Flag #12: Negative Online Presence

What it looks like: No online reviews, or reviews that are consistently negative. Multiple complaints on BBB. Patterns of dissatisfaction. Why it matters: Online reviews, while imperfect, reveal patterns. Consistent problems indicate:

Poor workmanship
Communication issues
Payment disputes
Abandonment of projects

What to do: Research thoroughly. Search "[company name] complaints" and "[company name] reviews."

Red Flag #13: Different Name Than License

What it looks like: Company name doesn't match license. License is under individual name different from company. Why it matters: This may indicate:

Using someone else's license
Operating under multiple names
Trying to hide past problems

What to do: Verify license matches the entity you're contracting with.

Red Flag #14: No Detailed Timeline

What it looks like: "A few weeks." "We'll see how it goes." No specific milestones or completion dates. Why it matters: Without timeline commitments:

Projects drag indefinitely
Resources get diverted to other jobs
You have no basis for expecting completion
Contractors can deprioritize your project

What to do: Insist on detailed timeline with milestones in the contract.

Red Flag #15: Bad-Mouths Everyone

What it looks like: All other contractors are terrible. Previous clients were unreasonable. Inspectors are corrupt. Nothing is ever their fault. Why it matters: Contractors who blame everyone else:

Won't take responsibility when things go wrong
Create conflict rather than solutions
Likely have left a trail of dissatisfied clients

What to do: Professional contractors acknowledge challenges without constant blame.

How to Respond to Red Flags

When You See One Flag

Don't dismiss it. Ask clarifying questions:

"Can you help me understand why you need such a large deposit?"
"What's preventing you from providing references?"
"Why would you suggest skipping permits?"

Legitimate contractors have good explanations. Problematic ones deflect or get defensive.

When You See Multiple Flags

Walk away. Multiple red flags indicate a pattern. No matter how convenient or affordable, the risk isn't worth it.

Trust Your Instincts

If something feels wrong, it probably is. Your gut often picks up on signals your conscious mind hasn't processed.

The Alternative: Work with Vetted Contractors

You don't have to navigate these risks alone. Vetted Crews screens contractors so Indianapolis homeowners can hire with confidence. Every contractor in our network has been thoroughly vetted—licensing, insurance, references, quality, and reputation verified.

Learn how we protect your home investment.

15 Red Flags When Hiring a Contractor: Warning Signs to Watch For

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