Red Flags and Green Flags When Looking for a Contractor

2–3 minutes

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Choosing the right contractor can make or break your construction project. Whether you’re building a retirement home, a commercial space, or an apartment complex, knowing what to look for — and what to avoid — helps protect your investment from costly mistakes.

Here’s a guide to help you spot the red flags and recognize the green flags when selecting a contractor.


RED FLAGS: What to Watch Out For

  1. No Business Permit or PCAB License
    A contractor operating without legal credentials may cut corners, use unskilled labor, or vanish without accountability. A valid Philippine Contractors Accreditation Board (PCAB) license is the baseline of legitimacy.
  2. Too-Good-To-Be-True Pricing
    Cheap quotes often mean hidden costs, poor materials, or unqualified workers. Ask: “What’s missing from this quote that I’ll end up paying for later?”
  3. No Written Contract or Scope of Work
    Verbal promises can easily be broken. If your contractor can’t provide a clear contract detailing deliverables, timelines, and payment terms — walk away.
  4. Always Unavailable or Poor Communication
    A contractor who’s hard to reach before the project starts will likely be unresponsive when issues arise later
  5. No Proof of Past Projects
    If they can’t show real photos, references, or locations of completed work — you may be their first project, or worse, they’re hiding something.

GREEN FLAGS: Signs You’ve Found the Right One

  1. Licensed, Insured, and Transparent
    A legitimate contractor will proudly present their PCAB license, BIR registration, and permits.
    : Our clients get full access to permits, licenses, and even consultations with our engineers and architects.
  2. Detailed Proposals with Cost Breakdown
    Good contractors explain where your money goes — from materials to labor.
    : Our signature Cost Breakdown System gives you a clear view of your investment, down to the last nail.
  3. Client-Centered Approach
    If they ask about your budget, goals, and timeline early on, that’s a sign they’re planning with you, not just for you.
    : We start every project with discovery — your vision, your goals, and how we can design to fit both.
  4. Proven Track Record
    Established contractors have references, portfolios, and ongoing projects you can visit.
    : You can visit our active and completed projects to see the quality, not just read about it.
  5. Progressive Payment Terms
    Reliable firms won’t ask for full payment upfront.
    : At C. Escudero Engineering Services, you only pay per milestone. No 100% upfront. No surprises at the end.

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