Friendly, acquiescent, low on references and high on demand for immediate payment, if these terms describe your home remodeling contractor, you may be entering a scam. The contractor may have appeared with the lowest quote on your project but you will have to check for the validity of the contractor?s business otherwise you are opening yourself to the risk of high costs over and above the cost of remodeling. The remodeling industry is attractive to people who are looking for low investments and quick returns to tide over their financial difficulties.

License and Insurance
The contractor license is a sure sign of contractor credibility. Carry out a license check with the state license board and ascertain that the contractor is insured. Check for the workers insurance in case of injury on your site. If this is missing, you will be liable to bear the compensation to the worker in the event of an accident. A good home remodeling contractor will be in a position to provide proof of credibility and will understand your need to conduct verification before choosing the services.

Upfront payment
A home remodeling contractor who offers to do the job for you at a comparatively low cost if you make a large first time payment is likely to disappear leaving the work undone. Your percentage of outgo should be under your control till the time the work is satisfactorily completed. It makes long term sense to opt for the higher cost low advance model since your risk in this model is low. Some contractors choose to do this work to earn in times of temporary work setbacks. They are interested in work that provides high returns in a short time frame. Be aware of this before you agree to a high initial payment.

Liability insurance
Contractor?s liability insurance is another way to avoid being defrauded. Many fly by night operators start work without this insurance and place the liability of their errors on the homeowner. Your contractor might make an error that leads to a widespread disaster or loss of utilities for some time. This leads to inconvenience to your neighbors and costs will multiply to mitigate the circumstance. These costs are covered by liability insurance. If the home remodeling contractor is unable to provide ready proof of insurance, avoid the services of the contractor.

Terms of contract
A home remodeling contractor will provide you with a contract before starting the work. Read the contract carefully since a three day lag time is provided between the time you receive the contract and the contractor starts work. It is advisable to go through a few contracts to check whether the contract is designed to lead you to higher undisclosed expenses and whether it is in line with market practice. The contract will cover specific subjects like the scope of the assignment and aspects that are not covered. This provides you with an understanding as to whether your purpose is being fulfilled. In case of a dispute, the contract should be appropriately reworded before the assignment starts.

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