How to Vet a Contractor: The Six-Step GOLDGCP Vetting Process

The six GOLDGCP vetting steps at a glance

Every contractor in the GOLDGCP network goes through the same six checks before receiving a single project:

Pros who pass all six earn the GCP Vetted Pro badge. The application itself has five parts: company info, trades and service areas, license and insurance, portfolio, then review and submit.

Step 1: Check the state license

A license check is the first filter because it is public, free and fast. The Federal Trade Commission's advice to homeowners is direct: consider only contractors who are licensed and insured, and check with your state or county government to confirm the license. Licensing rules are set state by state, and in some places cities or counties license certain work as well, so start with the state board and then ask your local building department.

How to look up a license

1. Ask for the license number. In California, contractors must print their license number on business cards and on every bid and contract, according to the Contractors State License Board (CSLB).
2. Go to the state board's search page. CSLB lets you search by license number, business name or the name of a person on the license, and the record includes complaint disclosure. You can also call CSLB at (800) 321-2752.
3. In Florida, the Department of Business and Professional Regulation runs a "Verify a License" search at MyFloridaLicense.com, by license number or by name.
4. Other states have similar boards. Search for your state's contractor licensing board and use the official .gov site, not a third-party directory.

What to look at on the record

• Status. The license should be active, not expired, suspended or revoked.
• Name. The business name on the license should match the name on the bid and the contract.
• Classification. A roofing license covers roofing. A plumbing job needs a plumbing license or a general license that allows it in your state.
• Complaints and discipline. Read what is disclosed and ask the contractor about anything that concerns you.
• Bond and insurance fields. Some boards, including CSLB, show bond and workers' compensation information on the license record.

For GCP Pro, this step is the same check, done for every trade the contractor applies for. In California the check runs through CSLB.

Step 2: Verify insurance, workers' comp and bonds

Ask for proof of insurance before anyone works on your property. The FTC lists this alongside the license check. Two policies matter most for a home project.

General liability insurance

General liability pays for damage the contractor causes to your property or to other people. CSLB notes that in California commercial general liability insurance is not required for a license, but it does cover damage to your property. That is exactly why you should ask for it even where the law does not.

Workers' compensation

Workers' compensation covers workers hurt on the job. CSLB says California law requires employers in construction to carry it even if they have only one employee. Some trades must carry it whether or not they have employees: in California that includes concrete (C-8), HVAC (C-20), asbestos abatement (C-22), roofing (C-39) and tree service (C-61/D-49). If a contractor with a crew has no workers' comp and someone is hurt at your home, the question of who pays becomes much harder.

License bonds

A license bond is a requirement in many states. CSLB requires every licensed California contractor to carry a contractor license bond of $25,000. The amount is set by law and stays the same whatever the size of your job, so a bond is no substitute for liability insurance or a careful contract.

How to read a certificate of insurance

Contractors usually prove coverage with a certificate of insurance, often on the standard ACORD 25 form. Read it closely:

1. Check that the named insured matches the licensed business.
2. Check the policy dates. The policy should be in force for the whole job.
3. Check the type of coverage and the limits.
4. Look for workers' compensation, which may be on the same certificate or a separate one.
5. Call the insurer or agent to confirm the policy is active. Use a phone number from the insurer's own website.

The ACORD 25 form itself says it is "issued as a matter of information only and confers no rights upon the certificate holder." In plain terms, the paper is a summary. The policy is what counts, and a phone call is the only way to know it is still active.

On GCP Pro, contractors upload certificates for general liability and workers' comp with the application, and those certificates are checked before approval.

Step 3: Background and business check

A license tells you the state approved a person or company at some point. A business check tells you who you are dealing with today.

• Search your state's business entity records, usually run by the Secretary of State, to confirm the company is registered and in good standing.
• Make sure the owner or officer you meet is connected to the licensed company.
• Search the business name and owner names with words like "complaint" or "lawsuit."
• Note how long the company has used its current name. Frequent name changes deserve a question.

In California, the state already runs a criminal history check at licensing. CSLB requires every license applicant, and each officer, partner, owner and responsible managing employee, to be fingerprinted through Live Scan, with results going to the state Department of Justice and the FBI. Other states differ, which is why GOLDGCP runs its own background and business check as a separate step.

Step 4: Review the portfolio

Photos of finished work show whether the contractor has done projects like yours. Ask for jobs of similar size, scope and budget. A kitchen remodeler with only cabinet installs in the portfolio may not be the right fit for a layout change that moves plumbing.

Good portfolio questions:

• What was the scope, and what did the client start with?
• How long did it take, and did it finish on schedule?
• Which parts did your crew do and which did subcontractors do?
• Can I speak with that client?

For GCP Pro applicants, the portfolio review also checks that past projects match the trades and service areas listed on the application, so homeowners are matched with pros who have done the kind of work they need.

Step 5: Call references

References are easy to skip and they tell you things no license record can. Call at least two recent clients, ideally from projects finished in the last year or two.

Ask each one:

1. Did the job finish on the date promised? If not, why?
2. Did the final price match the contract, and how were changes handled?
3. Was the crew on time, and did they clean up?
4. How did the contractor communicate when something went wrong?
5. Would you hire them again?

Listen for specifics. A reference who describes how a problem was handled tells you more than one who only says the work was great.

Step 6: Onboarding and quality score

The last step is specific to GOLDGCP. Approved contractors complete onboarding on the platform and start with a quality score. That score follows the contractor's work on the platform. For a homeowner hiring on your own, the equivalent is a clear written contract, a payment schedule tied to finished stages, and a check-in at each stage.

Red flags the FTC warns about

The FTC lists warning signs of home improvement scams. Walk away, or at least slow down, if a contractor:

• knocks on your door saying they are working in the area or have leftover materials;
• pressures you to decide on the spot;
• asks for cash only, or for the full price up front;
• asks you to get the building permits yourself;
• pushes you toward a lender they know.

The FTC also suggests getting multiple estimates, with each one describing the work, materials, completion date and price, and not automatically choosing the lowest bid. CSLB goes further and recommends at least three written bids based on the same plans and scope.