How to Hire a Contractor in Mississippi (Without Getting Burned)

Hiring the wrong contractor is one of the most expensive mistakes a homeowner can make. In Mississippi, where residential construction requires state licensing for jobs over $50,000 and many cities have their own permit requirements, there's a lot that can go wrong if you skip your homework.

Here's a checklist that will keep you out of trouble — whether you're renovating a bathroom or building an addition.

Check their license

Mississippi requires contractors to be licensed through the Mississippi State Board of Contractors for any residential project over $50,000. You can verify any contractor's license status on the Board's website. Look for the license classification — residential builders have different classifications than commercial or specialty contractors. If someone tells you they don't need a license for a $60,000 project, walk away.

Verify insurance

Don't just ask if they have insurance — ask for a certificate of insurance (COI). A legitimate contractor will have it and won't be offended. You need to see general liability insurance (minimum $300,000) and workers' compensation. If a worker gets hurt on your property and the contractor doesn't carry workers' comp, you could be liable. In Mississippi, contractors with one or more employees are required to carry it.

Get at least three written bids

Not verbal estimates — written bids that itemize materials and labor separately. This is the only way to do an apples-to-apples comparison. If one bid is 40% lower than the other two, that's not a deal — that's a red flag. They're either cutting corners on materials, underestimating the scope, or planning to hit you with change orders later.

Never pay more than 30% upfront

A reasonable deposit is 10-30% to cover initial material purchases. Anything more than that should make you nervous. Structure payments around milestones — 30% at start, 30% at rough-in, 30% at substantial completion, 10% at final walkthrough. This keeps the contractor motivated to finish and gives you leverage if something goes wrong.

Even better, use an escrow system. The money is held by a third party and released when each milestone is verified. That's exactly how payments work on FairTradeWorker.

Red flags to watch for

No written contract. If they want to work off a handshake, they're not professional enough for your project. Pressure to decide immediately. Legitimate contractors know you're getting multiple bids. No physical business address. A PO Box only means they're harder to find if something goes wrong. Demands cash only. This usually means they're avoiding taxes and likely don't carry insurance either.

How FTW handles all of this

FairTradeWorker was built specifically to solve these problems. Every contractor on the platform has their license verified with the state board, insurance certificates on file, and real project reviews from other homeowners. When you post a project, you get itemized bids from verified contractors — no cold calls, no door knockers, no guessing. Use the FairPrice Estimator to know what your project should cost before bids even come in.