How to Vet a Contractor: The Complete Indianapolis Homeowner's Guide
The 12-step process professionals use to verify contractors — so you can protect your home and your wallet.
Every year, thousands of Indianapolis homeowners hire contractors who disappear mid-project, deliver substandard work, or simply take the money and run. The Indiana Attorney General's office receives hundreds of contractor complaints annually — and those are just the ones that get reported.
The good news? Most contractor nightmares are preventable. With proper vetting, you can dramatically reduce your risk of hiring a bad contractor. This guide walks you through the exact process professionals use to verify contractors before trusting them with a project.
The Hard Truth
Properly vetting a contractor takes 4-8 hours of research, phone calls, and document verification. Most homeowners skip steps because they're busy — and that's exactly when problems occur.
In This Guide
- 1. Verify Their Indiana Contractor License
- 2. Check for Active Insurance
- 3. Search for Complaints & Lawsuits
- 4. Read Online Reviews (The Right Way)
- 5. Ask for Recent References
- 6. Actually Call Those References
- 7. Visit a Current Job Site
- 8. Get Multiple Written Estimates
- 9. Review the Contract Carefully
- 10. Verify Permits Will Be Pulled
- 11. Establish a Payment Schedule
- 12. Trust Your Gut
1. Verify Their Indiana Contractor License
Indiana doesn't require a state-wide contractor license, but many municipalities do. In Indianapolis, contractors performing work over $1,000 need to be registered with the city.
How to verify:
- Check the Indianapolis Department of Business & Neighborhood Services for registered contractors
- Verify any specialty licenses (electrical, plumbing, HVAC) with the state licensing board
- Ask to see their license and write down the number
- Call the issuing authority to confirm it's active and in good standing
Warning: Some contractors will show you an expired license or one belonging to someone else. Always verify independently.
2. Check for Active Insurance
This is non-negotiable. A contractor without proper insurance puts YOU at risk. If a worker gets injured on your property or damage occurs, you could be held liable.
Required insurance:
- General Liability Insurance — Covers property damage and accidents (minimum $1 million recommended)
- Workers' Compensation — Covers worker injuries (required in Indiana if they have employees)
How to verify: Ask for a Certificate of Insurance (COI) and call the insurance company directly to confirm the policy is active. Policies can be cancelled the day after a certificate is issued.
3. Search for Complaints & Lawsuits
A pattern of complaints is a major red flag. One bad review could be a fluke, but multiple complaints suggest systemic problems.
Where to search:
- Better Business Bureau (BBB) — Search for complaints and their resolution
- Indiana Attorney General — Consumer complaint database
- Marion County Courts — Search for civil lawsuits by business name
- Indiana Secretary of State — Verify the business is registered and in good standing
Red Flag: If you find the contractor has operated under multiple business names, this could indicate they're trying to escape a bad reputation.
4. Read Online Reviews (The Right Way)
Online reviews can be helpful, but they're also easily manipulated. Here's how to read them critically:
- Look for detailed reviews — Generic 5-star reviews with no details are often fake
- Check review dates — A cluster of reviews in a short period is suspicious
- Read the negative reviews — How did the contractor respond? Do they take responsibility?
- Check multiple platforms — Google, Yelp, Facebook, Angi, HomeAdvisor
- Look for photo evidence — Real customers often post photos of completed work
Be especially wary of contractors with only perfect 5-star reviews and no negative feedback. Every business has at least some unhappy customers.
5. Ask for Recent References
Any legitimate contractor should be able to provide at least 3-5 references from the past 12 months. Be specific about what you want:
- References for projects similar to yours (same type and scope)
- Projects completed in the last year
- Contact information that includes phone numbers, not just emails
Warning: Some contractors provide friends or family as references. Ask specific questions about the project to verify it's legitimate.
6. Actually Call Those References
This is where most homeowners drop the ball. Getting references means nothing if you don't actually contact them. Ask these questions:
- Was the project completed on time?
- Was it completed within budget?
- How did they handle problems or changes?
- Did they clean up after themselves?
- Would you hire them again?
- Is there anything you wish you had known before hiring them?
Pay attention to hesitation or vague answers. Happy customers are usually enthusiastic about recommending good contractors.
7. Visit a Current Job Site
If possible, ask to visit a project that's currently in progress. This tells you more than any reference call:
- Is the site clean and organized?
- Are workers wearing appropriate safety gear?
- Does the work look professional?
- How do the workers interact with the homeowner?
A messy, chaotic job site often indicates sloppy work habits that will carry over to your project.
8. Get Multiple Written Estimates
Get at least three written estimates for your project. This helps you:
- Understand the fair market price for your project
- Identify outliers (too high or suspiciously low)
- Compare what's included in each estimate
Red Flag: Be very cautious of estimates significantly lower than others. This often means the contractor is cutting corners, using inferior materials, or planning to hit you with change orders later.
9. Review the Contract Carefully
Never sign a contract without reading every word. A good contract should include:
- Detailed scope of work (exactly what will be done)
- Materials to be used (brands, grades, colors)
- Start and completion dates
- Total price and payment schedule
- Change order process
- Warranty information
- Permit responsibilities
- Cleanup expectations
If the contractor is reluctant to put details in writing, that's a major red flag.
10. Verify Permits Will Be Pulled
Many home improvement projects in Indianapolis require permits. The contractor should handle this, but verify:
- Which permits are needed for your project
- That the contractor (not you) will pull them
- That inspections will be scheduled as required
Warning: Work done without permits can cause serious problems when you sell your home, and may not be covered by insurance if something goes wrong.
11. Establish a Payment Schedule
Never pay the full amount upfront. A reasonable payment schedule protects both parties:
- Deposit: 10-30% upfront (to cover materials)
- Progress payments: Tied to specific milestones
- Final payment: 10-15% held until work is complete and inspected
Red Flag: Any contractor who demands more than 50% upfront or wants cash-only payments should be avoided. This is one of the biggest warning signs of a potential scam.
12. Trust Your Gut
After all your research, trust your instincts. If something feels off, it probably is. Warning signs to watch for:
- High-pressure sales tactics
- Reluctance to provide documentation
- Vague or evasive answers to your questions
- No physical business address
- Unmarked vehicles and no company uniforms
- Wanting to start immediately without proper planning
Quick Vetting Checklist
This Is a Lot of Work. We Get It.
Properly vetting a contractor takes hours of research, phone calls, and verification. Most homeowners simply don't have the time — and that's when mistakes happen.
Vetted Crews does all of this for you. We verify licenses, check insurance, call references, and oversee quality — so you can hire with confidence.
Let Us Vet Your Contractor