A general check list and guide lines to follow before hiring a contractor.

• Keep a project or job file so you don't misplace any contracts. A general list to file are: a copy of the signed contract and any change orders, plans and specifications, bills and invoices, canceled checks, lien releases from subcontractors and material suppliers, letters, notes, and correspondence with your contractor, pictures of the job before, during, and upon completion.
• Avoid being victimized by unscrupulous or unlicensed contractors, always ask the contractor you will be hiring if they are licensed and insured.

• An unlicensed contractor who operates a business out of the back of a truck with a mobile telephone may be difficult to find to complete a job or fix something that has gone wrong after the bill is paid.

• Have the contractor you will be hiring provide you with a copy of their business license number and their certificate of business insurance, this will protect you.

• When you hire a contractor ask if they will be doing the work. Many contractors sub out the work so be sure to check the subs credentials as well to make sure they are licensed and insured.

• Contractor's References are only as good as their honesty, you have no idea if their references are family or friends.

• One of the best ways to select a licensed contractor is to seek out personal recommendations from friends or relatives who recently had work done, they will gladly share their experience with you about their contractor.

• In order to receive an accurate bid know exactly what work is to be done, how you want your project to look like when finished, and how much funds you have allotted to spend.

• Make sure your contract includes everything you feel is important to the job.

• Your contract should specify a detailed description all materials to be used, such as the quality, quantity, weight, color, size, or brand name as it may apply. It must be as specific as possible.

• Your contract should specify start and finish dates for your project. However, external factors such as the weather or the availability of supplies might cause delays.

• The contractor should obtain any necessary building permits. This should be spelled out in your contract; otherwise, you may be held legally responsible for failure to obtain any required permits.

• Licensed contractors should obtain all building permits, not the consumer. The permit holder becomes the general contractor and assumes responsibility for the overall job which may include taxes, workers' compensation, and other legal liabilities.

• Contract should specify the complete cleanup and removal of debris and materials.

• Protect yourself and your investment when hiring a contractor get at least two bids.

• When getting estimates for the work to be complete don't always go with the lowest bid. "If the offer sounds too good to be true, it probably is!"

• Discuss the bids in detail with each contractor, and be sure you understand the reasons for any variations in price. Sometimes a higher price may be worth it, if the materials to be used are of higher quality.

• Beware of any bid substantially lower than the others. It probably indicates that the contractor has made a mistake or is not including all the work quoted by his or her competitors.
• Assume Nothing! Always have the contractor give you an estimate in writing. Be sure to ask questions until you fully understand the contract for the work to be completed.

• Do not sign anything until you completely understand what you are signing, and agree to all the terms.

• Ask an attorney to look over contracts before you sign, this will avoid any legal problems. Protect yourself from a construction lien. If your contractor fails to pay subcontractors or material suppliers, the people who are owed money may look to your property for payment, even if you have paid your contractor in full. This means that if a lien is filed against your property, your property could be sold against your will to pay for labor, materials, or other services which your contractor may have failed to pay.

• Never sign a blank or partially blank contract. Get a copy of the contract as soon as you sign it, and keep it for your records. Both you and the contractor are bound by everything set down in the contract, so read it carefully. If you have any questions or do not understand something, ask before you sign.

• If you add work to the contract, substitute materials or equipment, or delay the completion date, make sure that clearly worded and signed "Change Orders" reflect all changes to the original signed final contract.

• Always keep a copy of any payments to the contractor.

• Never pay cash to a contractor.

• If you are required to pay a down payment you should never pay more than
  10% of the contract price or $1,000, whichever is less.

• If you are scheduling payments you should pay only as the work is completed
  and not before. Be sure to tell your contractor there are no exceptions.

• Never make your final payment in full until you are 100% satisfied. You and
  your contractor at this time must sign - off for the completion of your project.