Hiring the wrong contractor is one of the most expensive mistakes a homeowner can make. We've heard dozens of stories from Northern Colorado homeowners who came to us after a previous contractor left a project half-finished, unpermitted, or far over budget.
This guide gives you the exact framework we'd give our own family members for evaluating and hiring a remodeling contractor in the Fort Collins, Loveland, Greeley, Windsor, and Severance areas.
Step 1: Verify Colorado Licensing
Colorado requires contractors to be licensed. You can verify any contractor's license status at dora.colorado.gov (Division of Regulatory Agencies). This takes 30 seconds and is non-negotiable. If a contractor can't provide their license number or their license isn't current, stop there.
Note: Some municipalities in Northern Colorado (Fort Collins, Loveland, Greeley) have their own additional licensing requirements on top of state licensing. Ask specifically whether the contractor is licensed to pull permits in your city.
Step 2: Confirm Insurance — Both Types
You need two separate types of coverage verified:
- General Liability Insurance — covers damage to your property during the project
- Worker's Compensation — covers workers injured on your property. Without this, you could be held liable.
Ask for certificates of insurance naming you as an additional insured. Any legitimate contractor will provide this without hesitation.
Step 3: Get at Least 3 Written Estimates
Get a minimum of three estimates for any significant project. This isn't about finding the cheapest — it's about understanding what a reasonable price range looks like and spotting outliers in either direction.
If one estimate is dramatically lower than others: Ask exactly what's included. Often the low bid excludes permits, demo, or uses inferior materials. These cost differences usually surface during the project as "change orders."
What estimates should include: Line-item breakdown of materials and labor, a project timeline, payment schedule, and what is explicitly excluded.
Green Flags: What Good Contractors Do
Red Flags: Walk Away From These
6 Questions to Ask Every Contractor
"Are you licensed in Colorado, and what is your license number?"
Why it matters: Colorado requires contractor licenses. DORA lets you verify any license online at dora.colorado.gov.
"Do you carry general liability and worker's compensation insurance?"
Why it matters: If an uninsured worker is injured on your property, you may be liable. Ask for certificates of insurance.
"Will you pull permits and manage inspections?"
Why it matters: Unpermitted work can create serious problems at resale and may not meet code. Any contractor who suggests skipping permits is a red flag.
"Who actually does the work — your employees or subcontractors?"
Why it matters: Both can be fine, but you should know. If subs are used, confirm they are also licensed and insured.
"Can you provide 3-5 local references from projects similar to mine?"
Why it matters: References from Northern Colorado homeowners who had similar work done are the most relevant validation.
"What is the payment schedule?"
Why it matters: A legitimate contractor typically asks for 10-20% upfront, with milestone payments tied to project progress, and a final payment upon completion.
The Contract: What Must Be Included
Never start a project without a signed contract. At minimum it should include:
- Detailed scope of work (what's included AND what's excluded)
- Materials specifications (brands, grades, colors)
- Start date and estimated completion date
- Payment schedule tied to milestones, not calendar dates
- Change order process and pricing
- Warranty on workmanship
- Process for resolving disputes