Hiring a Contractor

Red flags: how to spot a bad bathroom contractor

The warning signs that separate a risky contractor from a legitimate one, according to the FTC and BBB, before you hand over a deposit.

Published August 31, 2026

Homeowner reviewing a home renovation contract with a magnifying glass

Most bathroom remodels that go wrong don't go wrong because of a bad tile choice. They go wrong because a homeowner missed a red flag during hiring. The Federal Trade Commission and Better Business Bureau have both published guidance on exactly what those warning signs look like, and they cluster around a handful of predictable behaviors.

Here's what to watch for before you sign a contract or hand over a deposit.

Payment red flags

Demanding full payment upfront. A reasonable down payment is normal. A contractor who wants the entire project cost before starting work is not behaving like a legitimate business, and you have no leverage left if the job stalls.

Cash only, no other option. A contractor who insists on cash and avoids checks, cards, or any traceable payment method may be trying to avoid a paper trail. That's a real warning sign, not just an inconvenience.

Asking for a final payment before the work is actually done. Never make the last payment until you've walked through the completed project and you're satisfied. Once it's paid, your leverage to get punch-list items fixed disappears.

Documentation red flags

Refusing to put anything in writing. No written estimate, no written contract, no written change orders. This is the single behavior the FTC flags most consistently across home improvement scams, because a verbal promise is unenforceable the moment something goes wrong.

Suggesting you skip a permit that's likely required. If a contractor tells you not to bother with a permit for work that clearly touches plumbing, electrical, or structural elements, that can mean they're unlicensed or expect the work won't pass inspection. Neither is a reason to trust them more.

Sales pressure red flags

Time-limited "sign today" offers. A legitimate contractor understands that a bathroom remodel is a real financial decision and won't pressure you into signing on the spot. Urgency is a sales tactic, not a sign of a good deal.

Door-to-door solicitation, especially after a storm. Unsolicited offers following a storm are one of the highest-concentration environments for contractor fraud. A contractor with a real local reputation doesn't usually need to go door to door.

Business legitimacy red flags

No verifiable local presence. A cell phone number with no business address, no local references, and no way to confirm they've actually worked in your area is a reason to slow down.

Can't or won't answer basic questions. Licensing status, insurance, years in business, and examples of past work are all fair questions. A contractor who deflects or gets defensive about any of them is telling you something.

How to actually verify before you sign

  1. Confirm the license number yourself. Call your state or county licensing office directly rather than trusting a number on a business card.
  2. Get proof of insurance from the insurer, not the contractor. A certificate of insurance should come from the insurance company, confirming coverage is active.
  3. Check the Better Business Bureau. Complaint history and whether a business is BBB Accredited are both public information and take a few minutes to check.
  4. Get everything in writing before any money changes hands. Scope of work, cost, timeline, and payment schedule should all be on paper.

None of this is complicated, but it does take time most homeowners would rather skip. That's exactly the vetting BetterBathQuote handles before we match you with a contractor: get a free quote from a contractor already in our vetted network, rather than screening for these red flags yourself. For the specific questions worth asking once you're past the red-flag check, see our contractor questions guide.

References

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