4. Make sure the contractor you hire has proper insurance. This would include worker's compensation insurance, property damage and personal liability insurance. You should also contact your own homeowner's insurance company and ask if you are covered for any damage or injuries that might occur while the job is being performed.

5. Contact your local building authorities and find out if any permits will be required or any inspections will be necessary during or after the work. If the contractor asks you to obtain the license be wary. This could mean that the firm is not properly licensed.

6. Make sure you obtain a written contract for the job that specifies what materials will be procured for the job, the quality of those materials, the job schedule including completion date, if subcontractors will be used and who they are, and the total price. Also include a schedule of payments if that is applicable.

7. Don't sign a final release or make a final payment until you are completely satisfied with the work that has been done. Make sure all subcontractors have been paid. If subcontractors have not been properly paid they might have the right to put a lien against your property until they are.

8. Pay by credit card if you can. It might be possible to void payments through your credit card company if that becomes necessary for some reason.

In addition, there are some red flags that should make you wary:

If the contractor uses an unmarked van.

If the contractor wants payment in full up front.

If the contractor's vehicle has an out-of-state license.

If the contractor approaches you door to door.

If the contractor just happens to have materials left over from a previous job.

If the contractor offers a low-ball price.

If the contractor pressures you for an immediate decision.

If the contractor can only be reached by leaving messages with an answering service.

Follow these tips and your home improvement project is likely to be a big success.