When dealing with contractors, it is absolutely necessary to define for your contractor exactly what they job duties are. If you do not, they will "change order" you to death. Be sure to include things like clean-up and pulling permits in your scope of work. Over the years, I have developed a Work Breakdown Structure (WBS) that details each type of construction task.
For example, I have a WBS for installing Anderson windows, including removing the current window, window jam prep, level and shim, vycor, brick moulding, flashing, insulation, silicon caulking, hauling the window away, trim, screens, hardware kits, etc.
Other important steps include pre-qualifying subcontractors including reference check and verifying license, bond and insurance, including getting your contractor to fill out an insurance indemnfiication and add you as an "additional insured." Set-up a schedule for payments and never pay 50% down-payment up front. Make sure you get a certificate of occupancy, final inspection and mechanical lien indemnfication before giving the last and largest final payment.
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