2. Write it. Whenever you are hiring a contractor, always, always, ALWAYS put your agreement in writing. It does not matter if you know the person, if the person has a great reputation, or gives you a verbal agreement. This is not sufficient, protect yourself and get it in writing. If the person is being sincere in making you these promises, there should be NO issue to have it written down.

3. Be very specific. When you make your written contract, you want to make sure that you outline exactly what services you expect for the amount of money you are paying. This contract or agreement is known as a specification. Be brief and to the point, but do not leave things out. Include terms like "quality materials", "on time" and more. When hiring a contractor, include specifics such as:
Exactly where the repair or remodel is needed and will be done
The extent of the remodel (use detail)
Whether or not other remodels or repairs have been made to the area before
The type and quality of materials to be used
The color and size of materials to be used, have this totally written out with model numbers, samples, etc.
If there is painting involved, how many coats should be applied
A binding agreement that all work performed will conform to local and state codes

Include in your contract with the contractor:
All material, labor and equipment necessary for the job
When the expected job completion date is
Who is responsible for cleaning any messes that may result from the job
To what extent the repairperson or contractor is responsible for damage done to your property or that of your neighbors
When payments are expected and how they will be paid
What sort of screening will be done when hiring people to work on your property.
A responsibility for those whom they hire, or bring in to do the work.

It is best to use someone whose work you are familiar with. So, ask friends or family whom have had remodels done who they used, if they were happy, what they would do differently, etc. Always get at least three bids for the work you need done before you decide on a contractor. This way you ensure fair prices and time lines, and you ensure that you have a back up should your contractor fall through.

When you hire a contractor, make sure that you do not pay them for the job until it is complete and inspected. You will always want to inspect work that is done to ensure that it is quality, and that it meets inspections and codes.

You do not want to get in the way too much, but it is always a good idea to check up on the contractor and keep them honest. For example, when materials come in, be there to check them for quality, quantity, etc. Make sure as big things, like cabinets are installed, that you are getting what you paid for, not a laminate cover to particle board instead of knotty cherry. Also, if you stay out of their way you will be more likely to keep them happy, and ensure better quality work.

Last, but not least, when hiring a contractor, make sure if you make any payments to them, even your initial deposit that you get a receipt that reflects these payments, the amount you currently owe, and how this will be paid later (one lump sum or a series of payments, etc.). It is worth repeating, never make the final payment until after all the work has been completed correctly. Do an inspection of the work with the repairperson by your side. When you are satisfied with the job, then sign off on the contract and enjoy your remodel.