When deciding on a suitable contractor, you should talk to several who specialize in the job to be done and check their references. Ask for a written contract and read it carefully. The written contract should clearly set out all work to be done, how it is to be paid for and the beginning and ending dates for construction. If the work is to be financed by the contractor, or anyone else, all of the terms including amount lent, interest rate, amount of payments and late charges should be fully disclosed and understood. As liens might be filed against your property if the contractor does not pay his sub-contractors, laborers or material suppliers, you should discuss lien and completion bond coverage with your contractor, or an attorney, in order to protect your payment and your property.
Before any work begins, obtain assurance that your contractor is adequately covered by general liability, workman's compensation and builders risk insurance. Do not sign anything or give authority to begin work until you are fully satisfied