7 Red Flags When Getting Contractor Bids (And What to Do Instead)

We see thousands of bids cross HandyBid every month. The bids that turn into happy customers and the bids that turn into disputes look noticeably different from each other — and not in the way most people think. Price is usually not the tell.

Here are the seven patterns we see most often when a job goes sideways, and the small reframes that prevent each one.

1. The "cash discount" pitch

"I can do it for $4,000 even, or $4,800 with the credit card."

Translation: "I want this off-books." The discount is almost never the savings it sounds like. You lose:

• Recourse if anything goes wrong. No paper trail, no platform record, no warranty to point to.
• Insurance coverage. If the contractor doesn't run it through their business, their liability policy may not cover anything that happens.
• Tax-deductibility for jobs that qualify.

Instead: Pay through the agreed-on channel for the agreed-on price. If the contractor is genuinely cheaper on cards, ask them to update their public bid. Cash-only is fine as a payment method; cash-only as a discount mechanism is a red flag.

2. A bid that's 30% lower than the next three

The cheapest bid is sometimes the best deal. It's often the worst.

The honest contractor has done the same math the other three did and gotten a similar number. Someone who's 30% under either:

• Missed something in the scope — they're about to come back with "we found rotted subfloor, that's another $1,800"
• Is cutting corners on materials — using #2 lumber where the spec calls for #1, framing nails where structural screws are required
• Plans to disappear after a deposit

Instead: Ask the low bidder one direct question: "Walk me through how you arrived at this price." A real contractor will explain. A scammer will get defensive.

3. "I need a 50% deposit before I can start"

Large up-front deposits are how disappearing-contractor scams work. The legitimate range for most home-improvement jobs:

Instead: Insist on milestone payments tied to verifiable progress. "50% on rough-in inspection passing" is fine. "50% before I show up" is not.

4. No license, no insurance — "but I've been doing this for 20 years"

Experience is real, but it isn't a substitute for the two things that actually protect you:

• Insurance: If their worker falls off your roof, you don't want your homeowner's policy to be the first thing the lawyer goes after.
• License: For trades that legally require one (plumbing, electrical, HVAC, structural), an unlicensed install can void your home insurance AND fail at resale inspection.

Instead: Ask for proof of both. A licensed/insured contractor will email you a certificate within minutes. Someone who hedges ("I'll send it tomorrow") usually doesn't have it. On HandyBid you can filter bids to Licensed only, Insured only, or HandyBid Verified Pro only — we check the docs once and you don't have to chase them yourself.

5. The bid is one number, no breakdown

A $4,800 bid that's literally "$4,800 — paint house" is not a bid. It's a guess.

A real bid tells you: - What's included (which surfaces, how many coats, what brand of paint) - What's NOT included (carpentry repair, lead testing on pre-1978 homes, etc.) - Timeline ("3 days starting Tuesday" vs "sometime next month") - Payment schedule

Instead: Reject one-line bids. Ask for the breakdown in writing. If three bidders refuse to itemize, your spec was probably ambiguous — clarify the job post and resend.

6. Pressure to sign today

"I have a crew available tomorrow but I need to lock it in tonight."

Maybe. But more often the pressure exists because as soon as you have 48 hours, you'll get a second opinion and notice the bid is high or the credentials are thin.

Instead: Tell every bidder up front when you'll make your selection ("by Friday at 5pm" — HandyBid actually surfaces this date on every job). Anyone who can't wait a couple of days for that decision isn't actually available next week either.

7. Verbal change orders during the work

This is the most common dispute we see. Work starts, the contractor finds "one more thing," it gets added on the fly with no paperwork, and three months later the homeowner and the contractor remember the deal differently.

Instead: Insist that every scope or price change is added through the platform (HandyBid has a formal amendment flow that both parties sign before work continues). Off-platform side deals — even with the most honest contractor in town — are how memories drift.

The two-question screen

If you're short on time, run every bid through these two questions before you accept it:

1. "What's NOT included in this price?" If they shrug, the bid will grow.
2. "What's your payment schedule and what triggers each release?" If they push for everything up front or refuse to tie payments to deliverables, walk.

A good bid welcomes both questions. A bad bid resents them. That tell is more reliable than the dollar amount.

Post your project on HandyBid → — every bid is all-inclusive (materials, labor, permits, haul-away, taxes), every contractor has the option to be Verified, and every amendment is tracked.