Owning a home usually involves making repairs or renovations to that home. If you hire a contractor to do the work, avoid potential problems by doing a little research, and making sure the contractor you choose is reputable.

Before the first nail is hammered, check references. Local building inspectors, the Nova Scotia Home Builders Association, Better Business Bureau, developers and of course, previous customers are all good sources of information.

Comparing prices is always a good idea before buying anything, and that is also true with contractors. Get at least three written estimates, and don't forget to ask some key questions. Ask about the contractors' policy on guarantees. Ask the contractor to provide a sample guarantee and contract. Read it carefully. Sub-contractors in certain trades are not required to be certified by the Province. In these circumstances, ask the contractor for names and contact information of other customers and talk to them about their satisfaction level.

Once you have narrowed the list down to three possible contractors, provide a list of the work you want done. Show them the site, and walk through the project with them. Make sure all quotes are based on exactly the same job. Along with the technical part of the job, talk about start and completion dates, as well as acceptable work hours.

Once you have chosen a contractor, a written contract should be negotiated between you and the contractor. A specific, well-written contract can make clear who is responsible for what, and can protect both you and the contractor. It should include: how much you will pay in advance; the total cost and the method of payment; the start and completion dates; a financial penalty for each day the contractor works after the ending date (optional); the materials you want used; all of the work that is to be included in the price; who will get any necessary building permits; insurance coverage; and who is in charge of clean-up.

Many contractors have developed a contract for this purpose, however, it can be amended to include any of the above items with the contractor's agreement. If one doesn't exist, you can develop it yourself. If appropriate, you should have your lawyer review the contract. Review the contract carefully before signing. Both you and your contractor should sign the contract and you should both have a copy.

Contracts for large jobs should involve installment payments to be made as each phase of work is completed. Do not make the final payment until all work is completed. Hold back 10 percent of the total value of work, service and materials for 60 days after the work is finished. This hold-back allows you to protect yourself in case your contractor runs into financial difficulty. Under the Builder's Lien Act, you have a responsibility to the sub-contractors and suppliers who provide labour and materials. If these people have not been paid (either by you or the contractor) they may place a lien on your home. If you hold back ten percent, this will be the limit of your liability to unpaid sub-contractors. Sub-contractors can place liens without notifying you, so before paying any money, check the Registry of Deeds for liens against your home.

You will also want to make sure that sub-contractors such as bricklayers, electricians, plumbers and oil burner mechanics are certified by the Province of Nova Scotia. Check with the Department of Education's Apprenticeship and Training division to see if the contractor you're thinking of hiring is certified.

Changes will most certainly be made before the job is finished. These changes should never be made without the written approval of the homeowner and the contractor. The precise changes and the cost increase or decrease as well as any additional time added to the job should also be outlined.

Following this advice won't avoid all potential problems – a repair or renovation can be an amazingly complex undertaking. However, you reduce the risk of encountering a serious problem with your contractor when you take the time to research and plan your project through to completion.