How to Vet a Contractor Before You Hire

In South Carolina, contractors performing work valued at $5,000 or more must hold a license from the SC Contractors' Licensing Board (CLB). You can verify any contractor's license status online at the SC LLR (Department of Labor, Licensing and Regulation) website at llr.sc.gov. Search by the contractor's name or license number to confirm their license is active, check for any disciplinary actions, and verify the classification covers your project type. There are different license tiers—residential builders, mechanical contractors, and specialty contractors each have separate requirements. If a contractor can't provide a license number or discourages you from checking, that's an immediate red flag. For projects under $5,000, licensing may not be required, but hiring a licensed professional is still strongly recommended.

At minimum, a contractor working in Upstate SC should carry general liability insurance (typically $1 million per occurrence) and workers' compensation insurance if they have employees. General liability protects your property if the contractor causes damage during the project. Workers' comp protects you from liability if a worker is injured on your property—without it, you could be held financially responsible. Ask for a certificate of insurance (COI) and call the insurance company directly to verify the policy is current. Some contractors also carry commercial auto insurance and an umbrella policy. Never accept a verbal assurance that they're insured—legitimate contractors will provide documentation without hesitation.

A solid contractor agreement should include: a detailed scope of work describing exactly what will and won't be done; an itemized cost breakdown for labor, materials, permits, and disposal; a payment schedule tied to project milestones (never more than 10-15% upfront); start and estimated completion dates; a change order process that requires written approval and pricing before additional work begins; warranty information covering both labor and materials; cleanup and disposal responsibilities; and a termination clause outlining how either party can exit the agreement. In South Carolina, the contract should also reference the contractor's license number. Read every word before signing—if something is vague or missing, ask for clarification in writing before work begins.

Ask for at least three references from projects completed in the last 12 months—ideally projects similar in scope to yours. When you contact references, ask specific questions: Was the project completed on time and on budget? How did the contractor handle unexpected issues or change orders? Was the job site kept clean and safe? Were they communicative throughout the project? Would you hire them again? If possible, ask to see the finished work in person. Beyond provided references, search for reviews on Google, the Better Business Bureau, and local Upstate SC community groups on Facebook and Nextdoor. A contractor with no online presence at all in 2026 should raise questions. Also check the SC Contractors' Licensing Board for any formal complaints filed against them.

Watch out for these warning signs: demanding large upfront payments (more than 10-15% or the cost of materials); refusing to provide a written contract or detailed estimate; no verifiable license or insurance; pressuring you to make an immediate decision; offering a price significantly lower than other bids; wanting to pull permits in your name instead of theirs; no physical business address or only a P.O. box; asking you to pay in cash only; showing up without a company vehicle, signage, or business cards; and being unable to provide recent local references. In the Upstate SC area, door-to-door solicitors who show up after storms claiming to spot damage are a particularly common scam—always initiate contractor contact yourself and verify credentials independently.

Beyond the basics of scope, timeline, and cost, make sure your contract includes: the contractor's SC license number and insurance policy details; specific material brands, models, and grades to be used (not just "contractor grade"); who is responsible for obtaining permits; a detailed payment schedule tied to completed milestones; procedures for handling change orders with written approval required before work proceeds; a lien waiver clause so subcontractors and suppliers can't place liens on your property for unpaid bills; warranty terms for both workmanship and materials; daily work hours and site access details; dispute resolution process (mediation before litigation); and a right to cancel within the three-day cooling-off period required under South Carolina's Home Solicitation Sales Act for contracts signed at your home.

Start by documenting everything—take photos, save all communications, and reference specific contract terms in your complaint. Address the issue in writing first; a calm, factual email or letter often resolves misunderstandings. If direct communication fails, check whether your contract includes a mediation or arbitration clause and follow that process. You can file a formal complaint with the SC Contractors' Licensing Board at llr.sc.gov, which can investigate and take disciplinary action against licensed contractors. The Better Business Bureau can also mediate disputes. For financial disputes, South Carolina small claims court handles cases up to $7,500. If the contractor abandoned the project or the damage is substantial, consult an attorney who specializes in construction law in the Upstate SC area. Throughout the process, never withhold payment for completed and approved work as leverage—this can weaken your legal position.

The South Carolina Contractors' Licensing Board (CLB), operating under the Department of Labor, Licensing and Regulation (LLR), is the state agency that licenses and regulates contractors. The board can help homeowners in several ways: you can verify any contractor's license status and history online; file formal complaints against licensed contractors for substandard work, code violations, or contract disputes; and report unlicensed individuals performing work that requires a license. The CLB has authority to issue fines, suspend or revoke licenses, and require corrective action. Their online portal at llr.sc.gov lets you search by contractor name, license number, or company name. For Upstate SC homeowners, this is your first and most important verification step before hiring anyone for a project over $5,000. The board also maintains a public record of disciplinary actions, which can reveal patterns of complaints against specific contractors.