What is Contractor Trustworthiness?
Contractor Trustworthiness measures how well a builder quote or proposal meets 10 consumer protection standards, covering written documentation, insurance, trade body membership, fair payment terms, and professional accountability. A high score indicates a contractor who is likely to deliver the work as promised and provides recourse if things go wrong.
The Formula
Contractor Trustworthiness Score = Sum of 10 weighted checks (each worth 10 points) = Score out of 100
Worked Example
A homeowner gets two quotes for a $40,000 kitchen addition and runs each through the grader.
- Contractor A: itemized written quote, $2M general liability insurance, state licensed, AIA contract offered, 3 references with photos, 15% deposit, milestone payments, 2-year workmanship warranty, no pressure, registered LLC, Score: 82/100
- Contractor B: verbal estimate only, no insurance proof, no license, no written contract, no references, 50% cash deposit, full payment on completion only, no warranty, pressure to sign "today for discount", no registered business, Score: 34/100
- Contractor A passes 8 of 10 checks with minor gaps on contract specifics; Contractor B fails on fundamentals that would leave the homeowner with no legal recourse
📌 Contractor A at 82/100 is the safer choice despite being $3,000 more expensive. FTC data shows homeowners who use unlicensed, uninsured contractors lose an average of $5,000 per dispute with only 20% recovering any money. The $3,000 premium buys legal protection worth many times that.
Why This Matters
Contractor disputes are common and costly
The FTC and BBB receive tens of thousands of complaints about contractors each year, with average losses of $5,000 per dispute. Most complaints involve contractors without proper insurance, contracts, or licensing, exactly the checks this grader covers.
Insurance is non-negotiable
NAHB estimates 1 in 7 contractors operate without adequate general liability insurance. If an uninsured contractor damages your property or injures themselves on site, you could be personally liable for tens of thousands in repairs or legal claims.
Written contracts are your only recourse
Without a written contract, you have almost no legal protection beyond basic consumer protection laws. A written contract defines scope, timeline, price, and dispute resolution, it is the single most important document in any building project over $500.
Common Mistakes
❌ Choosing the cheapest quote
The cheapest quote often signals an inexperienced contractor, hidden extras, or cash-flow problems that lead to abandoned projects. Trustworthy contractors carry legitimate overheads (insurance, licensing fees, proper tools) that are reflected in their pricing.
❌ Paying large cash deposits
Deposits over 30% or cash-only payments are major red flags. Pay deposits by credit card where possible for chargeback protection. Never pay the full balance before work is complete.
❌ Trusting verbal promises
Verbal agreements are almost impossible to enforce. Everything that matters, scope, price, timeline, materials, warranty, must be in writing before work starts. If a contractor resists writing things down, walk away.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| General contractor trustworthiness | Score 80+ | Score 60-79 | Score below 60 |
| Specialist trade (electrician, plumber) | Score 85+ with state license | Score 70-84 | Score below 70 |
| Major renovation project (over $30K) | Score 90+ with AIA contract | Score 75-89 | Score below 75 |
Source: NAHB and BBB Consumer Survey
Benchmark data sourced from NAHB and BBB Consumer Survey.