How to Vet a Client Before Signing the Contract
By ClientCheck Team · 6 min read
Every contractor has a horror story about a client who disappeared when the invoice came due. Here's how to protect yourself before you ever pick up a tool.
Why Vetting Matters
Taking on a bad client doesn't just cost you money — it costs you time you could have spent on a good job. According to industry surveys, contractors lose an average of 5-10% of annual revenue to non-paying or slow-paying clients. The good news? Most of those losses are preventable with a simple vetting process.
Step 1: Search Their Reputation
Before you sign anything, search the client's name on ClientCheck. Other contractors in your area have likely worked with them and left honest reviews about payment reliability, communication, and scope creep tendencies. A five-minute search can save you months of chasing payments.
Step 2: Check Public Records
Look for liens, judgments, and lawsuits filed against the client. If they have a pattern of disputes with contractors, that's a red flag. Many court records are available online through your county clerk's office. ClientCheck also aggregates public records to make this step faster.
Step 3: Ask the Right Questions
During your initial meeting, pay attention to how the client talks about previous contractors. If every past contractor was "terrible" or "ripped them off," you may be walking into a pattern. Ask specific questions:
- Who was your last contractor, and why did you stop working with them?
- What is your budget, and is financing already in place?
- Who else is involved in decision-making on this project?
- What is your expected timeline, and is it flexible?
Step 4: Require a Deposit
A client who refuses to put down a deposit is telling you something. Industry standard ranges from 10% to 50% depending on the project size and your trade. The deposit confirms they have funds and demonstrates commitment. Structure your payment schedule with milestones tied to completed work — never let the balance owed exceed the value of work already completed.
Step 5: Get Everything in Writing
A handshake deal is an invitation for misunderstandings. Your contract should clearly state the scope, price, payment schedule, change order process, and termination terms. ClientCheck's estimate and contract tools can help you generate professional documents that protect both parties.
Trust Your Gut
If something feels off during the bidding process, it will only get worse once work starts. The best contractors know that saying "no" to the wrong client is just as important as winning the right one.