Things to Know 5-8

5. Set boundaries for the job site. Let the company know you expect routine precautions, such as employee background checks for anyone who will have access to your home. Also, establish some ground rules about parking, bathroom use, smoking, and other issues that might concern you.

6. Know what you'll be paying for. Everyone loves a free estimate, but if the project cost will exceed several thousand dollars, contractors likely will prepare (and charge for) a "scope of work proposal." Typically, this proposal will break down the job budget into line-item costs for labor, materials, fees, and so on, or at least will offer specifics about the tasks the contractor will perform (demolition, installation, cleanup) and what products will be used. The proposal fee often is paid up front and applied toward the project cost if the bid is accepted. Contractors will often give you a fixed bid, but some work on a "cost plus" basis, charging you for materials, time/labor, and an administrative or overhead fee. This is sometimes a legitimate alternative, but it should have a cap or some provision to contain cost overruns.

7. Have a strategy for how you will resolve differences. Any contractor you hire will become part of your life for at least the duration of the project. Make sure you pick someone with whom you can communicate, and trust your gut if first impressions leave you feeling uneasy. Reputable professionals will insist on clear written agreements in order to protect both parties. During initial meetings, ask how unexpected issues or differences might be handled. This can include change orders (these should always be in writing, with cost issues directly noted) or more serious disputes, such as unintended damage or a failure to meet legal or reasonable standards.

8. Be aware of contract details. A contract should include start and completion dates, information on applicable building permits and fees (typically handled by the contractor, but legally your responsibility), a description of what products and services are to be provided by the contractor, payment terms, subcontractor issues (such as license and insurance verification and warranty of workmanship), and the consequences of default by either party. Default can include a contractor's failure to pay subcontractors; the contract should exclude you from liability in the event that occurs.