How to Hire a Contractor in Illinois: 7 Things to Check Before You Sign

The Illinois Contractor Problem

Illinois does not require a statewide general contractor license. Any person with a business card can legally call themselves a general contractor in Illinois and sign contracts for home improvement work without ever passing a test, posting a bond, or demonstrating experience. For roofing, the state requires an IDFPR license — for everything else, protection comes primarily from local permit requirements and your own due diligence.

This licensing gap is not theoretical. The Illinois Attorney General's office received 2,014 complaints tied to construction and home improvement in 2025, making it the second-highest complaint category statewide. The Consumer Fraud Bureau saved consumers more than $9.4 million through mediation that year alone. The pattern is consistent: homeowners who skipped verification steps lost the most.

Here are the seven things to check before signing anything in Illinois.

1. Verify Licensing — State and Local

Illinois issues state-level licenses for a narrow set of trades. If you are hiring a roofer, an electrician, or a plumber, verification is straightforward.

State-licensed trades (verify at idfpr.illinois.gov):

• Roofing contractors — state license required statewide
• Electrical contractors — state license through IDFPR
• Plumbing contractors — licensed by the Illinois Department of Public Health

General contractors — local rules apply: Illinois does not credential general contractors at the state level. Licensing requirements vary widely by municipality. Your first call should be to your local building department: "Does this type of contractor need to be registered or licensed to work in this jurisdiction, and can you verify that this company is in good standing?"

In the Chicago metro, the city operates its own contractor licensing system through the Chicago Department of Buildings. For more detail on navigating Chicago-specific requirements, see our guide to finding a contractor in Chicago.

Outside of Chicago, check with your village, city, or county building department. Many suburban municipalities require contractor registration before pulling permits — and pulling permits is non-negotiable for any structural, electrical, plumbing, or HVAC work.

2. Confirm Insurance by Calling the Carrier

Request a Certificate of Insurance showing two coverages:

• General Liability: Minimum $1 million per occurrence. This pays for damage to your property caused by the contractor's work.
• Workers' Compensation: Required for any contractor with employees in Illinois. This protects you from liability if a worker is injured on your property.

Then call the insurance company at a number you look up independently — not one written on the certificate. Ask: "Is this policy currently active? What are the coverage limits? Has it lapsed in the past 12 months?"

Certificates can be forged. Policies can be cancelled for non-payment the day after the certificate is printed. A three-minute phone call verifies both. Illinois Workers' Compensation law is strict — if an uninsured contractor's worker is injured on your property, you may have exposure. Don't skip this step.

3. Require an Itemized Bid — Not an Estimate

The Illinois Home Repair and Remodeling Act (815 ILCS 513) requires written contracts for jobs over $1,000. A legitimate bid should go considerably further than that legal minimum. A real bid includes:

• Every material by brand, product line, grade, and quantity
• Labor rates or lump-sum labor broken down by trade
• Permit fees (itemized separately)
• Start date and projected completion date
• Payment schedule with specific milestone triggers
• The contractor's license number (for roofing and trades) or local registration number
• Insurance carrier name and policy number

If the contractor hands you a verbal quote or a vague one-page email, you don't have a bid — you have an opening number. Ask for a line-item document. Without one, there is nothing to hold them accountable to when disputes arise about what was included.

4. Get Three Bids from Three Different Contractors

This is not a price comparison exercise alone. Three competing bids reveal:

• Scope gaps: The contractor who missed items will return with change orders after work begins.
• Material quality differences: A lower number often means lower-grade materials — verify what each bid specifies.
• Market rate calibration: Three bids establish the actual range for your project in your area.

Bids that come in 25–30% below the others almost never represent a better value. They represent either missing scope, inferior materials, or a contractor who needs cash flow quickly. The Illinois AG specifically warns against contractors who pressure you to decide immediately because of a "limited-time" price — this tactic is common and almost always a warning sign.

5. Check References from the Last 12 Months

Do not rely on testimonials on a contractor's website or Google reviews alone. Ask for the names and phone numbers of three customers from projects completed in the past year with a similar scope to yours. Call each one and ask:

• Did the project finish on or close to the estimated timeline?
• Did the final cost match the original bid, or were there significant change orders?
• How did the contractor handle problems when they came up?
• Were all permits pulled and inspections passed without issues?
• Would you hire them again for a larger project?

The last question is the most revealing. A customer who says "the work looks good but I'd never deal with them again" is telling you everything you need to know about the process.

6. Understand the Deposit and Payment Schedule

Illinois does not set a statutory cap on contractor deposits, but the standard professional practice — and consistent guidance from the Illinois AG — is:

• Deposit: 10–25% at contract signing
• Progress payments: Tied to verifiable completion milestones (foundation complete, framing complete, rough-in inspections passed, finish work complete)
• Final payment: Withheld until the punch list is resolved and the certificate of occupancy or final inspection is in hand

Red flags to watch for:

• Any request for more than one-third of the total contract upfront
• "I need money to order materials" from a contractor who can't demonstrate an established business with supplier relationships
• A payment schedule based on calendar dates rather than project milestones
• Pressure to pay in cash or by wire transfer rather than check

For permits and large material orders on big jobs, a contractor may legitimately ask for an amount covering permit fees plus a deposit toward materials. This is acceptable if it is itemized line by line in the contract — not bundled into a vague upfront number.

7. Get Lien Waivers at Every Payment

Illinois mechanics lien law (770 ILCS 60) is written to protect contractors and suppliers — which means it can work against you if your general contractor doesn't pay their subcontractors and suppliers. Even after you pay the GC in full, unpaid subcontractors can file a lien against your property.

The practical protection protocol:

1. Before each payment, require your GC to provide a Sworn Statement listing all subcontractors, material suppliers, and laborers on the project, with the amounts owed to each.
2. Obtain signed lien waivers from the GC and each listed subcontractor when each payment is made.
3. For large material purchases, consider a joint check arrangement — the check is made payable to both the GC and the supplier, so the supplier must endorse it to cash it, confirming they were paid.

The Sworn Statement requirement is codified in Illinois law specifically to give homeowners visibility into who is working on their project and who needs to be paid. Contractors who resist providing it should be considered a significant risk.

The Fastest Verification Shortcut

If the above process sounds like a lot of work, AboveBoardPros does most of it for you. Contractors in our network have passed license verification, insurance confirmation, reference checks, and business history review before you see their name. You still get three bids and still read the contract carefully — but you start with a filtered pool instead of a blank search.