TL;DR: Choosing a general contractor comes down to five things: verified license and insurance, a portfolio of comparable work, at least three competitive bids, a written contract with a clear payment schedule, and direct answers to a short list of questions. Skip any one of these and you’re taking on risk that’s hard to undo once work starts.
You’ve got a project in front of you, a kitchen remodel, a home addition, maybe new construction from the ground up, and you’re staring at a list of contractor names with no obvious way to tell them apart. Every website looks professional. Every phone call sounds confident. The difference between a smooth project and a months-long nightmare often comes down to the vetting work you do in the next two weeks, before anyone touches your house.
Here’s the checklist that actually separates good contractors from bad ones.
What Does a General Contractor Actually Do?
A general contractor manages the full scope of a construction project: hiring and scheduling subcontractors (electricians, plumbers, framers, drywall crews), pulling permits, coordinating inspections, and keeping the job on schedule and on budget. They are the single point of accountability between you and every trade on the project.
On a kitchen remodel, your GC might self-perform the carpentry while subbing out the electrical and plumbing. On a new construction build, they’re orchestrating a dozen trades across months of work. Either way, their job is to translate your plans into a finished product without you having to manage every moving part yourself. When that coordination breaks down, wrong materials ordered, inspections missed, subs not paid, the problems land on your property and your timeline.
The quality of that coordination is what you’re actually buying when you hire a GC. The checklist below helps you evaluate it before you commit.
How Do You Verify a Contractor’s License and Insurance?
Alabama requires general contractors to hold a license issued by the Alabama Licensing Board for General Contractors for projects over $10,000. You can search the board’s database directly to confirm a contractor’s license is active and in good standing. This takes about two minutes and tells you whether they’re operating legally.
Beyond the license, ask for two insurance documents before any conversation about price:
- General liability insurance, covers damage to your property during the project. $1 million per occurrence is a reasonable minimum for residential work.
- Workers’ compensation insurance, covers injuries to workers on your property. Without it, an injured subcontractor could pursue a claim against your homeowner’s policy.
Request certificates of insurance directly from the contractor, not a summary or a verbal confirmation. The certificate names your property as the job site and shows the policy limits and expiration dates. If a contractor hesitates to provide this, move on.
For more on why this distinction matters, the National Association of Home Builders publishes guidance on contractor vetting that’s worth a read before you start collecting bids.
What Questions Should You Ask a General Contractor?
The right questions reveal how a contractor actually runs jobs, not just how they present themselves. Ask these before you discuss scope or price:
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How long have you been in business, and can you show me three to five projects similar to mine? Experience matters, but relevant experience matters more. A contractor who has built twenty decks may not be the right fit for a full kitchen gut-and-rebuild.
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Who will be on my job site every day? Some GCs are hands-on and present daily. Others manage from a distance and you’ll rarely see them. Know which you’re getting.
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Are your subcontractors licensed and insured? Your GC’s insurance covers their direct employees. Subcontractors need their own coverage. Ask for confirmation.
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How do you handle changes to the original scope? Change orders are normal on any remodel. A good contractor has a written process for documenting and pricing them. A bad one gives you vague answers and adds costs verbally.
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What does your payment schedule look like? A reasonable schedule ties payments to project milestones, not a large upfront deposit before work begins. More on this below.
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Can you provide three references from projects completed in the last 18 months? Recent references are more useful than old ones. Call them. Ask specifically: did the project finish on time, on budget, and would you hire this contractor again?
Should You Get Multiple Bids?
Yes, get at least three bids, and make sure they’re comparing the same scope of work. A bid that comes in $15,000 lower than the others isn’t necessarily a deal. It may mean the contractor excluded line items the others included, plans to use lower-grade materials, or is underpricing to win the job and will recover margin through change orders later.
When you receive each bid, look for:
- Itemized line items, not a single lump sum. You want to see materials, labor, and subcontractor costs broken out.
- Material specifications, brand, grade, and quantity. “Hardwood flooring” is not a specification. “3/4-inch solid red oak, 2.25-inch width, unfinished” is.
- A project timeline with start date, major milestones, and estimated completion.
- Exclusions clearly listed, what the bid does NOT cover. This is where surprises hide.
If one bid is dramatically lower, ask the contractor to walk you through it line by line. The answer will tell you whether it’s a genuine efficiency or a scope gap.
For a detailed look at how GC fees and markup work in Alabama, see our post on how much a general contractor costs before you start comparing numbers.
What Red Flags Should You Watch For?
Some warning signs are obvious. Others show up only when you know what to look for.
Hard stops, walk away immediately:
- No verifiable license or insurance
- Requests for more than 30-33% upfront before work begins
- Pressure to sign the same day, or a “this price is only good today” pitch
- No physical business address (a P.O. box or only a cell number)
- Asks you to pull your own permits (in Alabama, the licensed GC is typically responsible for permits on work they perform)
Yellow flags, ask more questions:
- Unusually vague scope of work in the bid
- Reluctance to provide references or portfolio photos
- No written change-order process
- Subcontractors who show up before a contract is signed
- A bid that arrived within hours of your first call, without a site visit
Trust your instincts on communication style, too. A contractor who takes four days to return a call during the sales process will not get faster once your money is on the table.
What Should a Contractor Contract Include?
A solid construction contract protects both parties. Before you sign, confirm these elements are present:
- Full project scope, detailed description of all work to be performed, materials to be used (with specifications), and work that is explicitly excluded
- Payment schedule tied to milestones, not calendar dates. Example: 10% at signing, 25% at framing completion, 25% at rough-in inspections passed, 30% at substantial completion, 10% at final walkthrough and punch-list sign-off
- Start date and estimated completion date, with language about what happens if the schedule slips
- Change order process, written, signed, and priced before any out-of-scope work begins
- Warranty terms, what the contractor warrants and for how long
- Dispute resolution, how disagreements are handled before either party pursues legal action
- Lien waiver process, your contractor should provide lien waivers from subcontractors and suppliers as payments are made, protecting you from mechanics’ liens if subs aren’t paid
Never pay the final draw until you have a signed punch-list completion, all inspections are passed, and you’ve received lien waivers from major subs and suppliers.
How Do You Find a Good General Contractor to Start With?
Referrals from people who have completed similar projects are the most reliable starting point. Ask neighbors, coworkers, or your real estate agent who they’ve used and what the experience was actually like, not just whether the project turned out well, but whether the process was manageable.
Online reviews are useful for pattern recognition. One bad review in fifty is noise. Five reviews mentioning the same problem, slow communication, unexpected charges, incomplete punch lists, is a pattern worth taking seriously.
Local trade associations and manufacturer networks can also surface qualified contractors. The NAHB’s local chapter directories and manufacturer contractor-locator tools (common with roofing and window brands) list contractors who have met minimum training or certification requirements.
If your project involves home remodeling or new construction, Davis Construction Contractors has been handling both in the North Alabama area since 2008. They’re licensed and insured, and you can reach them Monday through Friday at (256) 771-0326 to discuss your project scope and request an estimate.
About Davis Construction Contractors
Davis Construction Contractors is a licensed and insured general contractor serving Madison, Huntsville, Athens, and the surrounding North Alabama region since 2008. The company is family-owned and handles home remodeling, new construction, decks, roofing, siding, and restoration work for residential and commercial clients. Business hours are Monday through Friday, 8:00 AM to 5:00 PM. Reach them at (256) 771-0326.