If you want to investigate further, you can contact your Better Business Bureau in the white pages business listings, or on the Internet: http://www.bbb.org. You can also try your local consumer affairs department in the government listings. These services will tell you if any complaints have been filed against the contractor, and if the contractor's financial standing is sound.

2torial #0506: Learn2 Hire a Contractor Compare credentials Before you make your choice, it's always a good idea to arrange a final phone interview with the candidates to get a more complete picture of their reputation and credentials. This may sound like overkill, and for the more straightforward, simple jobs, it may be unnecessary. But for larger projects, a little legwork now can save you serious headaches down the road. If you're living outside the U.S., building regulations for licensing, insurance and permits may be different, but for those of you in the U.S., here are four key questions to ask the final candidates: 1. Are they licensed and registered with the state? If not, the work they do could be considered illegal. You may have asked this already when you were narrowing your search; now it's time to get the state registration number to see if it's current. If they're using subcontractors in the job, make sure these specialists check out as well. 2. What types of insurance do they carry? Contractors should have personal liability, worker's compensation, and property damage coverage. Without these, you may be held liable for any injuries or damages that occur during the project. 3. Can they get the necessary building and zoning permits? Although smaller projects do not always require permits, be on the safe side and check. Permits make sure your project will be looked over by a building inspector to see if it meets state or local regulations. You won't have much luck with insurance claims if you don't get the necessary permits. 4. Can they give you references? A good contractor should be able to give you names and addresses of at least three former clients who've had similar work done. This is the best way to learn about the contractor's work. If you contact a former client, prepare a set of questions: Did the contractor start and end the project on time? Were there any disputes involving the work, and if so, how were they resolved? Was the project ever interrupted by another job of the contractor's? Were they satisfied with the work? Step 6