With any contractor, you should ask for certificates of insurance for workers compensation and liability. This will help protect you, the property owner, in the event of injuries or damages as ultimately it’s your property and you are responsible. Another question to ask is whether the contractor’s employees are full time or paid as 1099 subcontractors. Paying one’s employees as 1099 subcontractors is a way of avoiding payroll taxes and insurance requirements, and the IRS is now taking a closer look at this.
A legitimate, conscientious contractor will have salaried employees who are paid on a regular basis and most likely receive certain benefits. They usually have a long-term relationship with the contractor and will treat you and your property with respect and professionalism because this is how their company values them.
Remodeling your home should be a pleasant experience with minimal interruption rather than an ordeal. By doing your homework in the beginning, you will save yourself headaches, time and money.