Here's some advice to help protect yourself and your money:

• Consider only contractors who are licensed and insured. Check with your state or county government to confirm a contractor’s license, and ask the contractor for proof of insurance.
• Get contractor recommendations from people you know and trust.
• Check with the local Home Builders Association and consumer protection officials to see if they have complaints against a contractor. Also search online for the company’s name with words like “scam,” “review,” or “complaint.”
• Read reviews with a critical eye. Read customer reviews to find out more about the contractor and use online rating websites you trust to see what others are saying about the contractor.
• Get multiple estimates. A written estimate should include a description of the work to be done, materials, completion date, and the price. Don’t automatically choose the lowest bidder. And ask for an explanation if there’s a big difference among the estimates.
• Read the contract carefully. Contract requirements vary by state. Even if your state doesn’t require a written agreement, ask for one. Before you sign a contract, make sure it includes
  • the contractor’s name, address, phone number, and license number
  • an estimated start and completion date
  • any promises made during conversations or calls related to issues such as the scope of work and the cost of labor and materials
  • a written statement of your right to cancel the contract within three business days, if you signed it in your home or at a location other than the seller’s permanent place of business

And, make sure all blank spaces are filled in.

• Don’t pay the full amount for the project up front. Some states actually limit the amount of money a contractor can ask for as a down payment. Contact your state or local consumer agency to find out the law in your area. And never make the final payment until the work is done and you’re satisfied with it.