Got the itch for some home improvement projects? Then hiring a contractor may be in your future. Before you get out the phone book and call the first ad that you see, be prepared with questions to ask.

The first step is to compile a list of contractors to call. The best bet is to get recommendations from people you know. Ask around at your office, in your neighborhood, and with your friends. Then, using the following questions, you can begin to call and interview the contractors on your list.

Questions
How long has the contractor been in business? Obviously, the longer he (or she) has been around, the more likely it is a reputable business, and not someone who is going to take your money and split town.

Does the contractor have a current license and registration in the state? Again, this helps you avoid trouble down the line.

Has the contractor completed similar projects to yours? If so, how many and when did he complete them? You may not want to hire a contractor whose first attempt at renovating a kitchen is in your home.

Does your project need a permit? If the contractor says that you are responsible for obtaining any necessary permits, watch out. If you obtain the permit, then the contractor may be able to avoid being held liable for his work. Also, it may be a sign that he is not licensed.

Does the contractor have insurance? What types? Any contractor you consider using should carry worker’s compensation and general liability insurance. Be sure to see the proof of insurance.

Will subcontractors be used? Does the contractor’s insurance also cover the subcontractors? You don’t want to lose your home because a subcontractor falls off a ladder and decides to sue you.

Can you see a list of references? Any reputable contractor will be glad to pass these along to you. Make sure you actually call the references and check out the work. Maybe you can get more ideas for your own project by checking out the contractor’s work on other homes.

What payment options are available? Can you make payments or will you need to pay in one lump sum upon completion? Think carefully before you finance through your contractor. You’ll often pay more than if you arranged your own financing through a home equity or personal loan.

A home renovation is a major project. Don’t cut corners with the most important ingredient – the contractor. Interview several, evaluate their answers, and go with your instincts in hiring the contractor for your renovations.