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Hiring a Contractor is a long and detailed process, but the most important things to remember when hiring a contractor is your common sense. Many of the mishaps that occur when people hire contractors could have been easily avoided if they just used common sense.

Step 1: Get Referrals
Asking a trustworthy friend, friend of a friend that can be trusted, family, co-worker or anybody else whom you deem trustworthy, about the contractors they have used in the past. If they can’t think of anybody then check with the National Association of the Remodeling Industry for a list of members in your area.

Step 2: Get a list of References
After you have a compiled a list of at least three Contractors, contact your prospective contractors and get a feel for their personality and how they are as people. When you feel you have gotten to know the contractor ask the contractor for at least three client references. This is the best way to judge a contractors professionalism and experience. Don’t just read the list of names but take the time and call the references and see what they thought of the contractors work and what the working conditions were like.

Step 3: Get the Facts
Investigate your prospective contractors past. You can check with your State licensing commissions or other State Commissions to see if the contractor is licensed at all and if any complaints or penalties have been filed against the contractor. Also visit your contractors current job site to see how the work is being handled, are the workers treating the house with respect, is it clean and safe? These are all factors that play an important role in the selection of a contractor. Also, Liability and medical insurance for contractors may or may not be required in your state, but it must be for anyone working in your home! Hiring an uninsured contractor is hiring an irresponsible contractor. Require that they present a certificate of insurance prior to signing any contracts, and call the agent to verify that the policy actually exists and what it covers. At a minimum, the contractor's general liability policy should be 100% of the value of your home.

Step 4: Communication is key
When you interview a potential contractor, you should feel comfortable speaking with him. After all, he will be working on your home! Explain the goals you have for your project. Can the contractor give you real solutions? Communication is the key to a productive relationship. By clearly communicating your creative ideas, asking the right types of questions, and listening to your contractor's solutions, you'll know if he is right for your project.

Step 5: Don't hire based on lowest price alone.
The basis of a contractor's price is important. Do not simply hire a contractor with the lowest estimate. Examine and breakdown each estimate. Is the price of materials low compared to other estimates? The materials probably are inferior. If the contractor's price is considerably lower than other estimates his standard of workmanship may not be up to par with more qualified contractors. Weigh all factors-price quote, references, professionalism and experience before making your decision.

Step 6: Check the contractor's level of education.
You should hire a contractor who places emphasis on continuing their education. Contractors who attend industry seminars, trade shows, and take classes remain atop of the latest techniques and solutions.

Step 7: A Clear and Precise Contract.
Before signing any contract research your state’s laws on consumer rights and make sure in your contract the contractor is not trying to pull a fast one over on you. Hire a contractor who explains in your contract how disputes will be resolved. Generally, a dispute should call for arbitration or mediation. Mediation and arbitration and are and inexpensive resolutions, especially in comparison the legal system.

Your Contract should include: a time table of all work, payment schedules, warranties, a dispute clause, Three day right recession, an agreement that all licenses must be purchased by the contractor and must be purchased, liability of work related injuries are that of the contractor, the specific duties of the homeowner and the specific duties of the contractor.