After a flood, good contractors are lifesavers and bad ones multiply the damage. The pressure to move fast makes it easy to miss warning signs. Use this guide to spot fourteen common red flags, check your contractor’s paperwork in minutes, and set a payment plan that protects you if things go sideways.
This guide expands each red flag with plain-language tests, scripts you can use with contractors, and a calculator to build a safe payment schedule.
Everything in writing
Milestones not time-and-materials
Moisture targets before close-up
Lien waivers every draw
14 Red Flags You Should Never Ignore
| 🚩 Red Flag | Why it increases risk | Fix or response |
|---|---|---|
| 🚩 No verifiable license number | Weak accountability and possible permit denial | Ask for license + photo ID. Verify on the state site. |
| 🚩 No general liability or workers comp | You could be liable for injuries or damage | Request certificates naming you as additional insured. |
| 🚩 Demands 30–50% cash up front | Loss risk if they vanish and less leverage later | Cap deposit at 10% or the legal limit. Tie draws to milestones. |
| 🚩 “We do not pull permits” | Unpermitted work can void insurance and delay resale | Call your city about permit triggers. Require permits in contract. |
| 🚩 Vague scope (no room-by-room detail) | Leads to change orders and disputes | List rooms, line items, materials, and moisture targets. |
| 🚩 No moisture protocol | Walls closed while wet create mold and future claims | Require meter type, reading locations, and pass targets. |
| 🚩 Price far below material cost | Signals bait and switch or poor materials | Get two more bids. Demand brand and model numbers. |
| 🚩 Only verbal promises | Impossible to enforce | Put every promise in the contract or it does not exist. |
| 🚩 Won’t provide recent flood-job references | No proof of quality under flood conditions | Ask for three jobs in the last 12 months with phone numbers. |
| 🚩 Unclear who will be on site | Unvetted subs and safety gaps | Get a daily roster. Require prime supervision. |
| 🚩 No lien waivers | Unpaid subs can file a lien even if you paid the prime | Collect conditional waivers with each draw, final unconditional at close. |
| 🚩 Demolition without containment | Dust and spores spread through the home | Plastic barriers, negative air, HEPA vacuum required. |
| 🚩 Refuses photo logs and daily notes | Adjusters may dispute work or quantities | Make photos, moisture logs, and receipts deliverables. |
| 🚩 Contract with junk clauses | One-sided terms trap you on price and venue | Strike unfair terms. See “Contract Clauses to Fix.” |
Count your flags. Three or more on one bid is a pass. Keep shopping.
Deep Dive: How to Test Each Red Flag
1) License and Insurance
- Test: Ask for license number and a photo ID. Verify online the name, status, and expiration.
- Insurance: Get general liability and workers comp certificates. Request to be listed as additional insured.
- Script: “Please email your license, insurance certificates, and a photo of the card so I can attach them to my claim file.”
2) Scope Clarity
- Room-by-room line items with quantities: linear feet of baseboard, square feet of drywall, number of doors, cabinets, fixtures.
- Brand and model numbers for major materials. “LVP, 20-mil wear layer, Brand X, Model Y.”
- Moisture targets by surface before close-up.
3) Moisture Protocol
- Meter: Specify pin or pinless and brand. Calibrate to an unaffected area.
- Targets: Studs ≤ 16%, interior air ≤ 60% RH, slab RH within flooring spec.
- Log: Twice-daily readings, photos of meter screen, same locations each time.
4) Permits and Inspections
- Call city to confirm triggers for electrical, HVAC, structural, and plumbing.
- List inspections in schedule: rough-in, insulation, final. No drywall until rough passes and moisture targets are met.
5) Pricing Sanity Check
- Request a materials list with SKUs. Google spot-check major items.
- Compare labor hours to scope. Extremely low bids often add costly change orders later.
6) Site Controls and Hygiene
- Containment at doors and returns. Negative air during demo and sanding.
- HEPA vacuum at end of each day. Filters changed when dusty work ends.
Contract Clauses to Fix Before You Sign
| Clause with 🚩 risk | Safer language you can request |
|---|---|
| 🚩 “Time and materials, estimated only.” | Milestone schedule with fixed draws tied to deliverables and inspections. |
| 🚩 “All change orders at contractor’s discretion.” | Owner approval in writing for any change that adds cost or time. |
| 🚩 “Arbitration in another state, attorney fees to contractor.” | Local venue and each party pays own fees unless law says otherwise. |
| 🚩 “Payment upon substantial completion.” | Payment upon listed milestones and final holdback released after moisture targets and final inspection. |
| 🚩 “Owner responsible for permits.” | Contractor pulls permits and passes required inspections. |
Safe Payment Plan Builder
Keep deposit small, split remaining funds over clear milestones, and hold back a final percentage to protect punch-list items.
Your Payment Schedule
Deposit: $0
Each milestone draw: $0 (x 0)
Final holdback: $0
Each draw requires photos, moisture log, and any required inspection passed.
Bid Comparison Matrix
| Item | Bid A | Bid B | Bid C |
|---|---|---|---|
| License & insurance verified | |||
| Room-by-room line items | |||
| Moisture targets listed | |||
| Permits included | |||
| Brand/model numbers | |||
| Payment milestones + holdback | |||
| Lien waivers each draw | |||
| References in last 12 months | |||
| Lead/asbestos checks if pre-1978 |
Print and fill this matrix as you compare. The best bid is the most complete, not the cheapest.
Moisture & Air Quality Pass Criteria
Targets
- Wood framing ≤ 16% moisture content
- OSB or plywood at or below an unaffected reference
- Interior air ≤ 60% RH during rebuild
- Concrete slab RH within flooring manufacturer spec
Proof Packet
- Daily moisture log with locations mapped
- Photos of meter readings and dehumidifier settings
- Inspection sign-offs and permit numbers
