Perhaps you’ve been dreaming of overhauling your kitchen for years. Or maybe you’ve suddenly realized you need a home office because of the pandemic. Whatever the reason, turning those dreams into reality will likely involve hiring a contractor.

But all contractors are not equal. In fact, there are some out to do little more than repair their bottom lines with your hard-earned money. Indeed, an Owens Corning Roofing OnePoll survey found the average homeowner has lost $12,424 to home renovation scams.

Here’s how to find a reputable and capable contractor to make your home renovation dreams a reality.

Identify the Scope of Work

Before contacting contractors, identify exactly what you want done. Does remodeling your bathroom mean changing the countertops or making the room bigger? You should have a clear picture of how you want your project to look before hiring a contractor. This will also help you stay on budget.

Start Your Search

Constantine Anest, owner of general contracting company Ethos Roofing & Restoration in Arlington, Texas, suggests first asking friends and family for recommendations. When someone you know and respect has had a good experience with a contractor, that’s more valuable than Yelp reviews.

Of course, that doesn’t mean you shouldn’t still do some research of your own. He says it’s smart to identify three to five contractors you might want to work with, then dig deeper.

Look for:

• Experience — How long have they been in business?
• Past work — Do they have photos of their past projects? Have they completed projects similar to yours?
• Specialty services — Are they general contractors? What else can they do for you? Do they have any special warranty offers you can take advantage of?
• Contractor certifications — Do they have specialized certifications relating to the work you want?
• Company values — Do the contractors seem honest, transparent, and ethical?

Before contacting a potential contractor, check out reviews on Whitepages.com, Google, and Angie’s List. You can also see if a contractor has any complaints with your local Better Business Bureau, where you’ll also be able to see if — and how — the contractor responded to the claim.

Constantine also says it’s smart to look up a company’s licensure as well. State and local governments often have online databases of business licenses that are accessible to the public. Verify that the contractors on your shortlist have the right local or state license to do the work you need.

Ask Questions

Start by asking how much the project will cost, Constantine advises, but don’t make a decision on price alone. Here are some other questions to ask:

1. Can I see your contractor/business license?

This piece of paper is the best way to protect yourself from dishonest business practices.

2. Can you provide proof of your insurance policies?

You never want to hire an uninsured contractor! In the event of an accident on the job, that insurance will help you avoid personal financial liability. At a bare minimum, your contractor should have workman’s compensation and general liability policies in place. Additional policies, like commercial property insurance or a business owner’s policy aren’t always needed, but may still benefit you.

3. Will we need a building permit for this project?

Not every contracting project requires a permit. However, some do. Your contractor should be able to answer this question easily and should get the permit for you.

As a homeowner, you should never be asked to acquire the permit yourself. If your contractor asks you to do this, it might mean they have outstanding violations with the city, they don’t have insurance, or their business is not reputable. Also, the cost of permits should be included in your estimate.

4. Do you use any subcontractors?

You can’t guarantee that their subcontractors will deliver the same standard of work as your prime contractors. Discrepancies may also exist in the insurance policies of each subcontractor, which could pose a big risk to your project. While using a subcontractor shouldn’t rule out a contractor, you want to know who will be working on your property in order to protect your investment and risk of liability in the event of an accident or injury.

5. How should payment be made?

You should never pay for a contracting project upfront. Most reputable contractors require a deposit, often about 25% of the project cost, to buy materials, etc., with the balance due upon completion.

6. Do you bring all the needed tools?

A trustworthy contractor will never ask you to provide your own tools. Reputable companies will also usually offer to supply all the materials or fixtures needed for your property remodel. If you want to buy your own faucets and fixtures, for example, be aware that items purchased outside of the contract might not be included in the contractor’s installation warranty.

7. What is the estimated timeline?

Agree on the project schedule in advance. If the contractor turns out to be a “busy beaver,” he won’t be willing to give an on-time completion guarantee. Of course, even if the contractor does provide a completion guarantee, it will often exclude issues like weather, owner changes, or catastrophes like a pandemic.

Get Everything in Writing

Keith Melanson, project manager of RenosGroup, an Ottawa, Canada, renovation company with over 35 years of experience specializing in residential renovations, urges homeowners to get everything from the estimated length of the job to the costs in writing. He says this is the best way to protect everyone from surprises and for homeowners to fully understand what work the contractor is — and is not — agreeing to perform. Many contractors offer 100% satisfaction guarantees. If that’s the case, make sure you get it in writing.

And make sure you read the contract thoroughly before signing. Double-check the description, materials being used, penalties, payment method, additional costs, etc.

Recouping a Loss

If the contractor you hire doesn’t perform high-grade work, Melanson says the first step is contact them about resolving the issue. If that doesn’t produce a reasonable remedy, there are many resources available to help homeowners, including consulting an attorney, going to small claims court, filing a complaint with the Better Business Bureau, and contacting your state licensing board.

This board oversees businesses engaged in construction, removal, repair, and improvement services. And because the board can issue and cancel contractor licenses, filing a complaint here might provide resolution to your issue.

If those solutions don’t work, contact consumer reporters at your local television or radio station or newspaper. Many act on the behalf of consumers to right wrongs and expose fraud.

You can also reach out to your state’s Contractor Recovery Fund. This is also called The Homeowner’s Recovery Fund, and it compensates owners or lessees who have suffered an actual and direct out-of-pocket loss due to a licensed contractor’s fraudulent, deceptive, or dishonest practices or failure of performance. This fund is often the last-ditch resort for homeowners, as you must have exhausted every other legal avenue for recovery before you can seek assistance.