How to Hire a Contractor in Minnesota (Without Getting Burned)
Hiring a contractor is one of the larger decisions a homeowner makes, and most people only do it a handful of times in their life. You are spending real money on something you rarely buy, which is how good people end up with a bad job. A little vetting up front saves a lot of grief later, so here is how to do it in Minnesota.
Confirm the license and insurance first
In Minnesota, a residential building contractor has to hold a state license through the Department of Labor and Industry. That license is not a formality. It means the company met an experience and testing requirement, carries the right coverage, and can be checked against a complaint history. You can look up any license number on the state's website in a couple of minutes. Ours is BC780119, and we are glad when people verify it. You can read more about who we are on our about page.
Before you sign anything, ask a contractor to prove three things in writing:
- A current state residential building contractor license, verified by number rather than just a claim.
- General liability insurance, which covers damage to your home during the work.
- Workers compensation, which covers injuries on site so that exposure does not fall to you.
A legitimate contractor sends a certificate of insurance without hesitating. If the answer gets vague, that tells you something.
Look at real work and talk to real clients
A portfolio shows you what a builder likes to put on display. References tell you what it is actually like to work with them. Ask for a few recent projects similar to yours and call the homeowners. People are usually honest about whether the crew showed up, kept the site clean, and finished what they started. If you can, go see completed work in person, or browse a gallery of finished projects to get a feel for the quality of the finish.
When you reach a past client, a few plain questions get you most of the way there:
- Did the final cost land close to the bid, and were changes explained before the money got spent?
- Did the crew keep to a schedule, and did someone tell you when things shifted?
- Would you hire them again?
Get a written bid and understand allowances
A one-line price scribbled on the back of a card is not a bid. A real proposal breaks down the scope: what is included, what materials are specified, and where the money goes. Read it closely for allowances. An allowance is a placeholder dollar amount for something you have not picked yet, like tile, cabinets, or light fixtures. If those numbers are set low, the bottom line looks great until you go shopping and blow past them. Ask what each allowance assumes and whether it is realistic for what you have in mind. Our process page walks through how we scope and price a project before anyone signs.
Agree on communication and scheduling
Before work starts, get clear on who your point of contact is and how you will hear about progress and problems. On a good job, someone tells you when a decision is coming and when the schedule moves. Minnesota adds its own wrinkle. Our building season is short, frost affects anything that touches the ground, and permit review takes time in the busier south metro cities. A contractor who gives you an honest timeline, including the parts outside their control, is telling you something good.
Know the red flags
Most contractors in the south metro are straight shooters, but a few patterns should stop you cold:
- A large upfront cash deposit. A deposit to reserve your spot and cover initial materials is normal. Asking for most of the job in cash before anything arrives is not.
- Pressure to sign today, or a price that is only good if you decide right now.
- Skipping permits to save a little time or money.
- A vague bid the contractor will not put in writing.
- Door knocking after a storm with an offer that sounds too easy.
Take your time and trust the fit
None of this needs to feel adversarial. The point of vetting is not suspicion, it is making sure you and the builder are a good match before either of you commits months and real money. If you have questions about how a job should be scoped or priced, our FAQ covers the common ones, and you are always welcome to reach out and talk it through.
Common questions
- How do I check if a contractor is licensed in Minnesota?
- Look up the license number through the Minnesota Department of Labor and Industry. Any residential building contractor working legally will have one, and the lookup shows license status and complaint history. If a contractor cannot give you a number to check, treat that as your answer.
- What questions should I ask a contractor before hiring?
- Ask for the license number, proof of liability and workers compensation insurance, and a few recent references you can call. Then ask how they handle changes, what their allowances assume, and who your main point of contact will be during the job.
- Is it normal to pay a contractor a deposit upfront?
- A reasonable deposit to reserve your place on the schedule and cover initial materials is standard practice. Be cautious if a contractor asks for most of the total upfront, especially in cash before any work or materials show up.
- Do I need a permit for a home renovation in Minnesota?
- Most structural, electrical, plumbing, and mechanical work requires a permit, and cities across the south metro enforce it. A contractor who wants to skip permits is skipping the inspection that protects you, and it can complicate a future sale.