Some people choose to hire a contractor before the permitting process, while others find one after the planning and design process is complete. The point is, if you haven't hired your contractor yet, now is the time to do it!

Hiring a contractor is a huge leap of faith. You are entrusting someone not only with your hopes and dreams, but also with a lot of your money. It goes without saying that hiring the right contractor can make or break your project.

You'll need to do lots of homework before finding your contractor. Don't just look in the yellow pages; ask a trusted family or friend whom they have had good experiences with. Once you have a list of names, begin the interview process.

You and your contractor are going to be working as a team. To that end, someone might be the nicest person in the world, but their style and your style might not match. In order to find the right contractor, you are going to have to ask yourself some questions first. The most important question is: How much control do you want over this project? If you are the type of person who wants to be kept in the loop at all times, you'll need to find a contractor who is willing to keep you apprised with daily communication, and who doesn't mind your input. On the other hand, if you want to just hand the reins over you'll have to find a contractor who is comfortable making big decisions on your behalf.

So, what exactly does your contractor do? Well, in most cases he won't be hammering any nails. Instead, think of your contractor as a supervisor of sorts. He'll be doing things like making sure all the permits and fees are lined up, sourcing and buying materials, coming up with a schedule, hiring and managing the subcontractors, managing the budget, and keeping you informed. Most contractors also need to be excellent problem solvers, therapists, and communicators!

Getting Bids

Chances are you'll interview more than one contractor. You'll want to get the most for your money, and you'll want to compare the prices, as well as the styles and working habits, of several different contractors. To this end, you'll be putting your project out to bid.

Friends and family are a good place to start to find potential contractors; you can also solicit those who have worked on houses in neighborhoods you like, as well as those found on the internet, in local resources, etc. How many contractors do you want to invite to bid on your project? At least three.

One of the reasons why it's a good idea to have already done the planning and design work on your home before selecting your contractor is that you'll get a more realistic bid. And you'll be able to compare apples to apples. The more detail your plans include, the better the comparison. If you know exactly what the bidding contractors are charging you for that Sub Zero refrigerator, for example, you'll be able to figure out their profit margins fairly quickly.

Basically, when hiring a contractor the first consideration is to hire one you can afford. After that need has been met, you want to choose a contractor whose craftsmanship you like, as well as whose style is compatible to yours. If you can find a contractor who meets all three of these criteria, you'll be in great shape!

Contracts

If you are building your own home, you are going to have to familiarize yourself with contracts. If you are acting as your own general contractor, you'll have to draft a contract for every single person working on your home, from the person who prepares the building site to the person who puts the final coat of paint on the walls. If you hire a general contractor, you'll only have to negotiate with him.

What is the purpose of a contract? A contract should button down and spell out all of your terms in case a dispute arises somewhere during the building process. A good contract should put down in writing specifically what you expect from the contractor, as well as the goods and services he is providing.

While many people put the contract away and never need to refer to it again, a contract can be a great reminder of what you and your contractor agreed upon. It ensures that everyone starts off on the right foot when it comes to communication.

In most cases, your contract will have a standard contract. Before you sign a contract read it very carefully, and have your attorney review it. Remember that contracts are legally binding documents. The project's price, payment plan, and the scope of the project should all be clearly spelled out. A good way to figure out if your contract is clear it to imagine a third party reading it. Would it make sense to them?

A contract should always include the following:

• Names and addresses of all the parties involved.
• The contractor's license and type.
• Workers' Compensation info, including policy number.
• Tax ID, or if your contractor doesn't have one, social security number.
• Location where the home is going to be built.
• Job specifications.
• Price and terms.
• When the project will be completed.
• Warranty information.
• How the parties will proceed if a conflict arises.
• Signatures and dates.

Remember, a good contract is an excellent way to open the path of communication, and ensures that conflicts that may arise down the road are more easily resolved.

Communication and Your Contractor

Good communication between you and your contractor is the best way to ensure that your project runs smoothly without any glitches. How much communication is enough? Well, in most cases you can't communicate too often. More communication is always better than less. And since there is something new happening on your project more or less every day, a good rule of thumb is to check in with your contractor once per day.

Now, chances are both you and your contractor are very busy, and even with the best of intentions it is going to be difficult to follow through with meeting once per day. Well, thanks to modern technology there is no need for a physical meeting, and daily communication couldn't be made any easier. If daily meetings in person are just not possible, don't let that stop you from checking in regularly. Use your phone or email instead. Why do you need to have a meeting every day? Well, it all is going smoothly you'll know it and will have peace of mine. But if issues or problems arise-and they will-you'll have a better chance of nipping them in the bud.

It's a very good idea to come up with a list of questions that you would like answered in your daily update. Make your contractor aware of these questions, so that he knows what to expect. Ask the same questions every day, and your updates, if all is going well, shouldn't take more than a few minutes. Some questions you want to ask might include:

• What did you work on today?
• Are you still on schedule and on budget?
• Did any problems, issues, or concerns arise today regarding the project?
• What are you working on tomorrow?
• Is there anything you need from me today to keep this project running smoothly on time and on budget?

Remember, communication works both ways. If you are having any issues-say you don't like some aspect of the way the project is going-it is important that you bring this up to your contractor as soon as possible. Your contractor may be building you your dream house, but that doesn't mean he can read minds!