How to Check a Contractor's Background and Protect Your Home Project
Start with the South Carolina Contractors' Licensing Board
The first step is to verify that the contractor holds a valid license from the South Carolina Contractors' Licensing Board. This is not optional—most work on homes requires a license, and checking it takes five minutes and costs nothing.
Go to the Contractors' Licensing Board website and use their license lookup tool. Enter the contractor's name or license number. The search will show you whether the license is active, what type of work it covers, and whether any complaints or disciplinary actions are on file. A contractor who cannot be found in this database should not be hired, period.
The license type matters. A general contractor license covers most home work. Specialty licenses cover plumbing, electrical, HVAC, roofing, and other trades. If someone is doing electrical work but holds only a general contractor license, that is a red flag. If they hold no license at all, they are breaking the law and you have no recourse if the work fails.
Key Takeaways
- Verify the contractor's license through the South Carolina Contractors' Licensing Board website before signing any contract.
- Check the license type to make sure it covers the specific work you need done—electrical, plumbing, roofing, and HVAC each require their own license.
- Review the complaint history on the license record and search online for reviews and Better Business Bureau ratings under the contractor's name and business.
- Get written estimates from at least three contractors, and never pay the full amount upfront—standard practice is a deposit, progress payments, and final payment on completion.
- Verify that the contractor carries liability insurance and workers' compensation insurance before work begins, and ask to be named as an additional insured on their policy.
Search for Complaints and Legal History
The Contractors' Licensing Board record shows formal complaints, but it is not the only place to look. Search the contractor's name online along with words like "complaint," "lawsuit," or "review." Check the Better Business Bureau (BBB) website for South Carolina—it lists complaints, how the contractor responded, and their rating.
Do not dismiss one or two old complaints; construction disputes happen. But a pattern of unresolved complaints, especially recent ones, is a reason to move on. Pay attention to what people complain about. If multiple customers say the contractor disappeared mid-project or did not show up for inspections, that tells you something about how they run their business.
Ask the contractor directly for references—three to five past customers who had similar work done. Call them. Ask whether the work was completed on time, whether the final bill matched the estimate, and whether they would hire the contractor again. A contractor who refuses to provide references or whose references are hard to reach is hiding something.
Verify Insurance and Bonding
Before any work starts, ask the contractor to provide proof of two types of insurance: general liability insurance and workers' compensation insurance. Do not accept a verbal promise. Ask for a certificate of insurance—a one-page document that shows the policy number, coverage limits, and expiration date.
General liability covers damage the contractor causes to your home or property during the work. Workers' compensation covers medical bills and lost wages if a worker is injured on your property. If the contractor has neither and someone is hurt, you could be liable for the medical bills. If they damage your home and have no insurance, you are paying to fix it.
Ask to be named as an additional insured on their general liability policy. This means you are protected if something goes wrong. It costs the contractor nothing and takes a phone call to their insurance agent. A contractor who refuses is signaling that they do not expect to stand behind their work.
Get Everything in Writing
A contract protects both of you. It should include the scope of work (exactly what will be done), the total price, the start and end dates, a payment schedule, and what happens if either party walks away. It should also specify who is responsible for permits and inspections.
Never sign a contract that leaves the scope vague—"fix the roof" is not enough. It should say "replace 25 squares of asphalt shingles, repair or replace damaged plywood, install new flashing around the chimney, and haul away old materials." The more specific, the less room for disagreement later.
The payment schedule matters. Standard practice is a deposit (usually 10 to 25 percent), progress payments as work is completed, and a final payment when everything is done and inspected. Never pay the full amount upfront. If the contractor demands it, that is a sign they may not finish the job.
Understand Permit and Inspection Requirements
Most home work in South Carolina requires a permit from your local building department. The contractor should know this and should handle getting the permit or should clearly state in the contract that you are responsible for it. Permits cost money and take time, but they exist to protect you—they ensure the work meets code and is inspected by someone who knows what they are looking at.
If a contractor tells you that you do not need a permit or that they can do the work "under the table" to save money, do not hire them. Unpermitted work can cause problems when you sell your home, may not be covered by insurance if something goes wrong, and violates state law.
Ask the contractor when inspections will happen and who will schedule them. For electrical, plumbing, and HVAC work, the building department inspector must sign off before the work is considered complete. Make sure the contract says the final payment is due only after all required inspections pass.
Compare Multiple Estimates
Get written estimates from at least three contractors. They should all be estimating the same work—use the same description for each. Compare not just the price but what is included. One estimate might include hauling away debris; another might not. One might include new materials; another might reuse existing ones.
If one estimate is much lower than the others, ask why. It might be because they found a way to do the work more efficiently. It might also be because they are cutting corners, using cheaper materials, or planning to skip steps. A contractor who bids significantly low and then asks for change orders (extra charges) once work starts is a common problem.
The lowest price is not always the best deal. A contractor who charges a bit more but has a clean record, good references, and clear communication is usually worth the extra cost.
Red Flags That Mean Do Not Hire
Walk away if the contractor cannot produce a valid license, has multiple unresolved complaints on the Contractors' Licensing Board record, refuses to provide insurance proof, or demands full payment upfront. Also walk away if they pressure you to decide quickly, offer to do work without a permit, or seem evasive when you ask questions.
Other warning signs: they do not have a physical business address or phone number, they only accept cash, they ask you to pay suppliers directly, or they cannot explain what they will do in clear terms. A legitimate contractor is happy to answer questions and put everything in writing.
Trust your instinct. If something feels off, it probably is. There are plenty of good contractors in South Carolina. Spending an extra week vetting them is time well spent.
Frequently Asked Questions
What if I hire a contractor and they do not finish the job?
If the contractor abandons the work, contact the Contractors' Licensing Board and file a complaint. The Board can investigate and take action against the license. You can also sue in small claims court or civil court for the cost of hiring someone else to finish. This is why a written contract and progress payments (rather than upfront payment) matter—they give you leverage.
Do I need a permit for small repairs like replacing a faucet or patching drywall?
Small repairs usually do not require permits. Replacing fixtures, painting, and minor patching are typically fine without one. But any structural work, electrical work, plumbing that involves moving pipes, HVAC work, roofing, or work that affects the home's foundation or load-bearing walls requires a permit. When in doubt, call your local building department and ask.
What should I do if the contractor wants me to pay cash to avoid taxes?
Do not do it. Paying cash with no receipt means you have no proof of the transaction if something goes wrong. You also cannot claim the expense for tax purposes if you own a rental property. A legitimate contractor will provide an invoice and accept payment by check or card. Insisting on cash is a sign the contractor is not operating legally.
Can I hire someone without a license if the job is small?
No. South Carolina law requires a license for most home work, regardless of the job size. The only exception is work you do yourself on your own home. Hiring an unlicensed person puts you at risk—if they are injured, you could be liable, and if the work fails, you have no recourse. It also violates state law.
What is the difference between a general contractor and a specialty contractor?
A general contractor can oversee most home projects and may do some work themselves, but they often hire specialty contractors for specific trades. A specialty contractor (electrician, plumber, roofer) is licensed only for that trade. For a large project, you might hire a general contractor who then brings in specialists. For a single trade—like replacing your electrical panel—you hire the specialist directly.