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  • Writer's pictureNH Home Buyers LLC

How to Protect Yourself When Hiring a Contractor


A big decision you have to make when flipping houses is the hiring of a contractor. Depending on how you go about it, you can have a great or a really poor experience. To make sure that you protect yourself from any unwanted consequences, you should protect yourself by following these tips.

Have a Good Contract

To ensure a good experience with your contractor, it is important to be legally protected. This means that your contract should cover all the important bases, such as:

  • The quality of the work that you are expecting

  • When and how payment will be transferred

  • What deadlines are in place

  • What measures will be taken if they fall behind schedule

By having a strong contract in place, you not only prevent ill-intentioned contractors from signing, but also ensure that a good contractor is not inclined to turn malicious.

Have Specific Payment Milestones

Setting up a payment plan in advance can be helpful. You can use this plan to avoid ambiguities regarding differing ideas about quality and scheduling. For instance, involving a third party to perform quality standards inspections before a payment release can help you ensure that you get the work you pay for. Such plans also allow you to accommodate unforeseen circumstances in which parts of the planning may have been rescheduled.

Review all Permits

Permits are not part of a contractor's job responsibility. Therefore, you should review all required permits in advance to make sure that the work is on schedule from the moment the contractor is hired.

Use a Lien Waiver Release Form

Using a Lien Waiver Release Form with payment release gives you a guarantee that the contractor has been paid and therefore waives lien rights to your property. This form can protect you from ill-intentioned contractors who intend to claim rights to your property.

Pay with Your Credit Card

Credit card payments can be a safe way to release payments to your contractors because if they back out, you can ask your bank to retract your payment. Unlike other means of payment, the ability to retract a payment makes credit cards the safest way of transferring funds to a contractor.

Choose a Contractor Wisely

It is important to consider various aspects of your contractor's profile. For instance, you should check that the contractor is licensed and can therefore start working on your project immediately. A contractor also needs to be insured so that you do not have to compensate them if an accident occurs.


To ensure that you are not conned by a contractor, it is essential to follow these guidelines and be careful at all times. Having contingency plans can give you peace of mind as you begin your house flipping endeavor and protect you from any issues with your contractor.

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