Red Flags to Watch for When Getting Contractor Estimates

Hiring a contractor for work on your home is a big decision. Whether you need a new furnace, air conditioner, or any other major home project, choosing the right contractor can save you time, money, and frustration. Unfortunately, not all contractors operate honestly or legally.

To help you avoid problems, here are some red flags to watch for when getting estimates from contractors.

1. They Ask You to Pull the Homeowner’s Permit

If a contractor asks you to pull a permit for the job, this is a major red flag. In most cases, licensed contractors are required to pull permits themselves. If they are asking you to do it, it likely means one of two things:

• They are not licensed with the Pikes Peak Regional Building Department (PPRBD) or the State of Colorado.

• They don’t want to be held accountable for following building codes and safety regulations.

A contractor without the proper license is also likely not insured, which means if something goes wrong—like damage to your home or an injury on the job—you could be held responsible.

2. They Require Full Payment Upfront

It’s normal for contractors to ask for a deposit before starting work, but if they require full payment before any work begins, that’s a red flag. Scammers and dishonest contractors often take the money and disappear or fail to complete the project as promised.

A trustworthy contractor might ask for a deposit or down payment, or have a clear payment schedule tied to milestones, depending on the project. This ensures that payments align with work completed, protecting both you and the contractor.

3. They Have No Online Presence or Business Information

A reputable contractor should have a business address, website, and a way to contact them beyond just a cell phone number. If they can’t provide a physical location or only communicate through vague means (like texting from different numbers), be cautious.

4. They Offer a “Too Good to Be True” Price

Everyone wants a good deal, but if one contractor’s bid is far lower than others, ask yourself why. Common reasons for lowball bids include:

• Cutting corners on materials or labor

• Not pulling permits (so the work won’t be inspected)

• Planning to hit you with surprise costs later

A fair estimate should reflect quality work, proper permits, and a team that stands behind their service.

5. They Pressure You Into a Quick Decision

If a contractor is pushing you to sign a contract immediately, be wary. High-pressure sales tactics—like “this deal is only good today” or “you need to decide right now”—are often used to trap homeowners into bad agreements.

A reputable contractor will give you time to review your estimate, compare options, and ask questions before making a decision.

Protect Yourself: Do Your Homework

To ensure you’re hiring a licensed, insured, and trustworthy contractor:
✔️ Verify their license with Pikes Peak Regional Building Department
✔️ Ask for proof of insurance (both liability and workers’ compensation)
✔️ Read customer reviews or ask for references
✔️ Get everything in writing, including scope of work, payment terms, and warranty details

Your home is one of your biggest investments—don’t take risks with the wrong contractor. By watching for these red flags, you can avoid scams, costly mistakes, and unqualified workers.