What characteristics and practices separate good contractors from the bad? The majority of home improvement projects include a fair amount of costs and stress, so knowing that you have the right contractor can make all the difference. While it may be true that anyone with tools and a pick-up truck can become a contractor, most states require contractors to be licensed. Don’t be afraid to do some research prior to hiring a contractor for a project. Check on references from previous customers and ask to see completed projects in person if possible. Consider collecting three bids on a potential project to determine if the estimates received are reasonable. While it may require a little bit of work up front, getting the right contractor can be easier then you think.

Points to consider when talking with a potential contractor to ensure you receive the care and service your home improvement project requires:

1. Make sure the contractor is licensed by the state, ask for references from past customers and ask for examples of past projects in the area.
2. Collect three bids on the project and beware of, “To Good To Be True”, low bids.
3. Check on whether or not an architect is needed as part of the planning/approval process for the home improvement work to be performed.
4. Consider having any contracts or agreements with the contractor reviewed by a real estate lawyer or independent third party.
5. Ensure subcontractors are paid upon completion of their work to protect against liens or other legal action that may affect the home.
6. Set up a reasonable payment schedule for the project with the contractor. This includes agreeing upon an initial down-payment for the project.
7. Establish a set work schedule with the contractor to ensure timely completion of the project.
8. Make sure the contractor is willing and able to obtain all permits and inspections in order to comply with local building codes and city ordinances.
9. Always maintain a good working relationship with the contractor, but keep it professional.

For additional tips and information please visit the following article from Yahoo Finance, "10 Things Your Contractor Won’t Tell You."