You need to see:

1. His/her State License # and then verify it with the State/or County Department of Consumer Protection or whatever State department covers home repair contractors in your State/City.. At that site...look for any consumer complaints filed against that License #. If his License is valid and State approved...he may have been required to post a Performance Bond with the State. That should cover you if there are performance problems. If you want more Bond coverage...talk to your own insurance carrier and ask whether they will supply such a Bond to you at your own expense.

2. An insurance Binder which is a paper format/ validation of his/her insurance coverage issued by his/her insurance carrier. That will tell you the amount of insurance he/she carries and what that insurance covers. Make sure the dates of insurance are current and feel free to call the insurance broker to validate the information. It's a common practice where home repair companies are involved. It may also list any Bonds that the contractor carries. Another item that you can ask his insurance broker about.

3. A Work Permit for the work that you're contracting to have performed. Don't allow any contractor...at any level...to begin work without a City Permit. If the contractor offers that the work doesn't require a Permit...check with your local Building Inspector to validate the contractors statement. It is very rare that a Permit is not required. The purchase of that Permit is another layer of protection for you in the event that the contractor isn't completely on the up 'n up.

Optional...but very important. Take photos of all the areas you're having repaired/replaced before the work begins...and/or before you've reached any agreement with a contractor. Then repeat the photo taking process throughout the project. Always remember that it's your word against his if there's ever a conflict. Nothing speaks louder in your defense than photographs-in-progress.

I, personally, discourage inquiring or relying on contractor personal recommendations because they're rarely dependable sources of correct info....but if your next door neighbor had this contractor do work for them and they're raving about him/her...you might get an honest opinion from them.

Last but not least...payment to a legitimate contractor is usually done in thirds. One third at the beginning of the contract [often called a good faith payment]; a third about halfway to two thirds of the way through the project and the remaining third upon acceptable conclusion of the project. For your own protection...don't vary from this payment schedule unless it's to rearrange it to quarterly payments rather than one third payments. And...never use cash. It's important to keep a very accurate payment record no matter how charming the contractor. Use traceable personal checks. You'll have a three day "cooling off" period at the start of this contractual arrangement. If you suddenly have a change of heart in the middle of the night of the second day...you can easily stop payment on a personal check.

Any valid contractor will have enough financial security that he/she won't need to push you for payments or advance money. Starving contractors...or contractors on the fly...are the ones who usually insist on large and frequent payments. If your project is going to require a lot of raw material...you might want to consider buying the material outright if you can get a better price than the contractor. But that's rare if the contractor is local and he/she has good supplier connections. Don't feel uncomfortable discussing the subject with the potential contractor. Always remember that you're the boss.

It's a personal "thing" with me...but I never use credit cards for this type of work/transaction no matter how well bonded the contractor may be.

Anne

What kind of work, how large a project? How are you locating the person, by a personal referral or another way?

Work--do you need permits? Not sure--check with your building dept, in fact some will tell you about the contractor you plan to use--some can't.
Make sure all the materials brought on the property are paid for--ask for lien releases. Make sure they are licensed and bonded. If he/she are using subs, make sure they get paid. Get EVERYTHING in writing. What he will do, how much, estimates, and if anything changes, get that in writing too. Guarantees? In writing

Details are on the "Home Repairs" forum. The mason went out and got insurance, and we have paid him 1/3 down with balance due on completion. He's to start end of this month.

We got this man's name from a neighbor whose business is building multi-million dollar homes. The other guys had all the right papers, but I had no confidence in them -- and neither could/would do all our projects. We needed to find a 'niche' person.