Writing this guide is something most contractors won’t do. A guide that helps you spot bad actors also exposes the practices that some companies in this industry use to win bids they shouldn’t. We’re writing it anyway because the homeowners who get hurt in bad contractor relationships are, often, the ones who didn’t know what to look for.
Start here: Missouri has no statewide general contractor license
This surprises most homeowners and, frankly, some contractors from out of state don’t know it either. Missouri does not issue a statewide GC license. There is no license number you can look up on a state website to confirm that your contractor is “licensed in Missouri.”
What exists instead:
City of Kansas City, MO occupational license. Any contractor performing work in KC MO proper is required to hold a City of Kansas City occupational license. The license is issued by the city and can be verified at kcmo.gov. Ask for the license number and verify it. A contractor doing work in KC MO without a valid occupational license is operating outside the rules — and that’s a signal about how they operate in general.
Overland Park, Lee’s Summit, Liberty, Independence, Olathe, Lenexa, Shawnee, Blue Springs — each has its own contractor licensing or registration requirement. The specifics vary. Ask which municipality the work is in and whether the contractor holds the required license or registration for that jurisdiction.
Subcontractor trade licenses — these do exist at the state level. Missouri licenses plumbers and electricians at the state level. Your plumber should be able to provide a Missouri master plumber license number; verify at pr.mo.gov. Your electrician should have a Missouri master electrician license. These are real licenses with real verification pathways. Any licensed trade contractor should hand you that number without hesitation.
Insurance: the two certificates you need before work starts
General liability insurance. A GC performing residential remodeling work should carry at minimum $1,000,000 per occurrence / $2,000,000 aggregate general liability. Ask for the certificate of insurance before the first day of work. The certificate should name you (or your property address) as an additional insured for the project duration — not just “the homeowner.” If the contractor can’t get you added as additional insured, that’s a flag.
Workers’ compensation insurance. If the GC has employees (not just subcontractors — employees), they are required to carry workers’ compensation insurance in Missouri. If a worker is injured on your property and the GC isn’t carrying workers’ comp for that worker, the liability can route to you as the property owner. This is not theoretical — it’s been litigated in Missouri courts.
When you receive the certificate, look at the expiration date. A certificate that expired six months ago means the coverage may have lapsed. Verify the current policy is in force.
The license + insurance verification sequence
- Ask for contractor’s KC MO occupational license number (or relevant municipal license).
- Verify on kcmo.gov (or the relevant city’s website).
- Request certificate of general liability naming you as additional insured.
- Request certificate of workers’ compensation.
- Ask the GC who the licensed electrician and plumber of record will be. Ask for their state license numbers.
- Verify electrician and plumber licenses at pr.mo.gov.
This takes about 30 minutes total. A legitimate contractor expects these requests and provides the information without friction. A contractor who stalls, gets defensive, or says “I don’t carry that type of insurance” on workers’ comp is telling you something.
Understanding lien waivers
A mechanic’s lien gives subcontractors and material suppliers the right to place a claim on your property if they don’t get paid — even if you paid the GC in full. If you pay your GC $60,000 for a kitchen remodel and your GC doesn’t pay the cabinet supplier, that supplier can potentially lien your property. This is a real risk in KC residential construction.
Conditional lien waivers are the mechanism that protects you. A conditional lien waiver says: “Upon receiving payment of $X, the undersigned waives any lien rights for work completed through [date].” It’s conditional on receipt of the payment — so the sub confirms they’ve been paid and releases their lien rights for that portion of the work.
Request conditional lien waivers from your GC at each draw milestone. For larger projects ($50,000+), request waivers from major subcontractors (the electrician, plumber, cabinetry supplier) as well as from the GC. A reputable KC contractor handles this as standard practice. A contractor who seems confused by the concept, or who says “we don’t do that,” is operating informally in a way that creates risk for you.
The payment schedule conversation
The most common structure for residential remodeling in KC:
- 10–15% at contract signing
- Progress draws at verified milestones (framing complete, rough-in complete, etc.)
- Final 10–15% at punch-list completion and your sign-off
Warning pattern: A contractor who requests 50% or more upfront before substantial work begins. This is the pattern that funds a truck, vacation, or another project — and leaves you in a position where you’ve funded 50% of a project with nothing substantial to show for it. On a $100,000 project, that’s $50,000 before a wall has been touched.
What “milestone” means. Draw milestones should be tied to verifiable, inspected milestones — not the contractor’s feeling that the project is “half done.” Framing inspection passed. Electrical rough-in inspection passed. Cabinets installed and measured for countertop template. These are events that a homeowner can verify. “We’ve been working hard for three weeks” is not a milestone.
Red flags in the actual job site
Beyond the pre-contract vetting, here’s what to watch for once work begins:
Abandonment patterns. A 2-day hole disappears into a 3-week absence with excuses. A crew that was supposed to be there Monday doesn’t show until the following Thursday, and the explanation is vague. The first long absence is often the warning sign. Legitimate delays happen (material backorders, failed inspections that require rework); legitimate contractors communicate about them the same day.
No permits pulled. If two weeks have passed since demo and there’s no permit visible on site, ask directly: “Where is the permit?” The permit card should be posted at the job site in KC MO. It’s a physical card, not a piece of paper — it lists the permit number, project address, and inspection milestones. If it’s not there and work is underway, something is wrong.
Subcontractors you’ve never met and can’t identify. On a well-run job, the GC can tell you who the licensed plumber is, who the licensed electrician is, who the tile setter is. If your GC can’t name the licensed electrician doing work in your house, ask harder. The answer tells you whether they’re actually managing the sub relationships or just hiring whoever’s cheap that week.
Change orders presented after the fact. A change order is legitimate when it documents scope that wasn’t in the original contract and gets your approval before the work happens. A change order that shows up after the work is done — “by the way, we had to do X, that’s $8,000” — is not a legitimate business practice. You had no opportunity to approve it, price it with a competitor, or make a different decision. Reject this pattern early.
The five questions to ask before signing
1. Who physically does the work? Own crews vs. all subs vs. a mix. Neither model is automatically bad, but you should know. All-sub operations are fine if the GC has long-standing relationships with quality subs. High sub-turnover is a flag.
2. What’s in writing on the payment schedule, and what triggers each draw? Get milestone definitions in writing. “Rough-in complete” should mean “rough-in inspection passed” — not “rough-in installed but not inspected yet.”
3. What are the allowances in this bid, and what happens if I choose something that costs more? Allowances are where budgets blow up. A “tile allowance” of $3 per square foot means the bid assumed $3 tile; if you choose $12 tile, that’s a $9/SF change order. Know what every allowance in the bid represents before you sign.
4. What is the change-order process — specifically, how are they priced and when is your approval required? The answer should be: in writing, before work proceeds, with your signature.
5. Who is my direct contact when something goes wrong? A name. A cell number. Not a general info email. The project manager who will field your 7am call when the sump pump they disconnected for plumbing work backed up in your basement.
A contractor who answers these questions clearly, in writing, without pushing back, is a contractor operating professionally. A contractor who hedges, deflects, or treats the questions as an imposition is showing you how they operate before you’ve signed anything.