Choosing a contractor can be confusing. But don't despair, there are steps you can take to make the process less stressful and choose a contractor with confidence. Here are a few helpful tips to make sure the job goes smoothly:

Coming soon: Professional Contractors from AllProPeople.com

Plan Price
References Questions To Ask References
Payment Communication
Permits License / Insurance
Plan
  Plan your project and your budget carefully. Unless you have a detailed set of plans with a complete material list and contractor notes, no two contractors will ever bid the same. Have a plan and then work that plan.

Price
 
Beware of the cheapest price. The low bid has the illusion of being a bargain, it's invariably the start of a client horror story. There are lots of reasons to be suspicious of any price that is substantially below the others. Once a contractor realizes they have underbid a job, they'll often find ways to cut corners by using lesser quality materials, hiring inexperienced labor or worse yet, abandoning the project altogether. The low bidder could be unlicensed, uninsured or unqualified. Remember the saying "You get what you pay for".

References
  Ask your contractor for references. This is your best way to judge a contractor's  professionalism. Don't simply read the references a contractor gives you. Take the time to contact several previous clients. You should also visit one of the contractor's references' either with the contractor, or on your own.

References are not all the same. There are three types of references you should examine:

1.Clients within the past 12 months, or a current job in progress.

2.Clients within the past three years.

3. Also, check with the county seat to find if a contractor has been named in any lawsuits.

4. Check with the Better Business Bureau. 

By contacting all these references you'll learn not only about the quality of the contractors current work, but how well his work and warranty holds up. Additionally, you'll get a feel for the contractor's long-term standing with his clients. There are a lot of "Fly by night" operations out there, and you don't want to be one of the victims.

Questions To Ask References
How is the quality of their workmanship?
How timely was the contractor during the course of the job?
How well did the contractor stay on budget according to the original quote?
How was the contractor's attitude towards changes?
Did the contractor himself visit the job and meet with you?
Did they keep the job site clean and safe?
Would you use this contractor again?
Would you refer them to a friend or relative? Did they show up when they were supposed to? Did the contractor finish the job in the allotted time?


Payment
  
A reputable contractor will never pressure you into signing a contract on a "must sign now basis" using scare tactics. Protect yourself by watching out for these warning signs:
1. You are offered a one day only quote or something similar. You must sign today or the price will increase substantially tomorrow. These are high pressure tactics that not be used in securing a reliable contractor.
2.You are asked to pay for the entire job in advance. Normally a contractor sets up schedules for payment with the final part coming at the completion of the job
3.The contractor will accept payment only in cash.

Communication
    An experienced contractor will listen to and understand your needs and wants. When you discuss what you would like to do, the contractor should show enthusiasm for your ideas and suggest ways to make them work within your budget. Ask the contractor for examples of how the company has solved home-improvement challenges for other customers.

Does the contractor:
1.Respond promptly to your inquiries?
2.Emphasize customer satisfaction?
3.Facilitate and encourage communication?
4.Provides changes in writing?.

Permits
  All states, counties, cities and towns may have different construction codes, which a builder must understand and follow after obtaining the permit.
Sometimes the idea of obtaining a permit seems excessive and an additional to some homeowners, but remember that the building inspection department is looking out for your best interest and safety. A permit is required to ensure that the work done is being done properly.

A reputable contractor will obtain the necessary permits needed for your project. Beware if the contractor asks you to purchase the permit(s). The person who purchases the building permit is responsible for ensuring the job is done according to local building codes. This is the contractor's responsibility, not yours. If you obtain the permit and your project does not meet local building codes, you will have less legal recourse against the Contractor. Also, if the contractor asks you to purchase the permit, it may mean that the contractor is in bad standing with the local building department and cannot pull the permit himself.

License / Insurance
  Some states do not require contractors to obtain a license. Check with your state's licensing department or local building department. If your state requires a license, make sure your contractor's license is valid and current.
  A credible contractor should carry insurance that protects you from claims arising due to property damage or job-site injuries? Each contractor should have Workman's Compensation Insurance, General Liability Insurance, and Auto Insurance. Remember to ask for a copy of the contractor's insurance certificates so you can be sure that you are not liable for any damage or injuries.