After you've decided exactly what renovations or home improvement you want done on your home, the next step is hiring the right contractor for the job. Before you make that important decision, remember that choosing your contractor can make or break the project.

The first thing to keep in mind when approaching contractors to collect quotes is that communication is a two-way street. This means that you need to convey the project you're proposing in the most clear and thorough terms possible, preferably through a detailed, written explanation. This way, when a prospective contractor prepares your quote, they will also have something written to refer to when pricing the particulars of your project.

Always get quotes from more than one contractor when hunting down the right person for the job. Referrals from friends, associates, and local building supply stores should be your first leads, as they come with first-hand knowledge of the contractor's performance that you won't find in a phone book listing. 

Don't be afraid to ask a contractor for their business license number, the name of their insurance carrier, and a few references. Contractors with real, professional experience will have nothing to hide and shouldn't be put off by these requests. Also check with your local Better Business Bureau (BBB) to ensure that the prospective contractor hasn't had any complaints lodged against them by previous clients.

Once you have a written estimate or quote from the contractor, make sure it has the following key elements: name and address of yourself and the contractor, a detailed plan or drawing, pricing, terms of payment, and start and completion dates. When comparing quotes from different contractors, be sure to take into consideration which quotes include cost of materials and make allowances for those.

The contractor's responsibilities, in addition to the finished project, should also be outlined in writing. This may include things such as procuring required building permits, prompt project clean-up, a statement of warranties, and confirmation of the contractor's property damage and public liability insurance.

If your contractor has purchased materials from suppliers or procured subcontractors that haven't been paid, be forewarned that they can place a lien against your property. Proof of payment from your contractor or the addition of a release-of-lien clause added to your contract can help protect you against a lien. You also have the option of issuing some of your payments to an escrow account where they will be on hold until the work is completed.

When it comes time for payment, be advised that down payments are not typically required for routine home repairs and improvements. If the contractor does request a down payment, and the project doesn't require that they order special materials or appliances beforehand, then it shouldn't exceed 10% of the quoted project cost. Interim payments for project milestones is not uncommon, but be sure to pay only if the milestones have been completed and be sure to get a signed receipt from the contractor if you pay for anything in cash.

If a dispute arises with your contractor that can't be resolved by reviewing the contract terms, you should consult with a lawyer. If the contractor's professional practices or workmanship are not meeting the terms of your agreement, you can also file a complaint with the government department that issued the contractor their business license.

Should any of the above seem like too much work when seeking a contractor for home construction, remember the time, energy and hard-earned money you are potentially saving yourself in the long run. Many people who sought out a contractor hastily, whether because they were in a hurry or trusted the contractor on blind faith might have avoided renovation nightmares with a few simple precautions.