A home is a family's most valuable asset. Proud and conscientious homeowners take great care to properly maintain and protect their home. For this reason, any professional hired to oversee a home renovation project should be chosen with utmost care. The right contractor can take all your dreams and ideas for your home and make them a reality; the wrong one can make it a nightmare. Hiring a contractor is, arguably, one of the most important decisions to be made on any home renovation project.

Follow these recommendations for hiring a contractor to create a smooth home renovation project from start to finish:

How to Choose the Right Type of Contractor
Contractors work in many different capacities, depending on the specific nature of the renovations and the size of the project. For example, general contractors manage all aspects of a project, including hiring subcontractors, obtaining necessary permits, and arranging requisite inspections. They can also work with designers and architects, and are particularly suited to extensive or complex renovations. In contrast, specialty contractors handle one specific type of renovation, such as kitchen or bathroom renovations. Many specialty contractors also offer design services. If a project will include structural changes, an architect or interior designer might be needed to draw up plans for the contractor to follow.

Locating Potential Contractors
When hiring a contractor, the most reliable source for referrals is friends, family, neighbors, and co-workers who have recently done similar renovations. Other places to find potential contractors include local home or trade shows, local Home Builders' Association or other trade association for listings of local contractors. It's not recommended to pick a contractor out of the phone book, as this gives you absolutely no prior information about the particular contractor, his work, or his honesty. Your home is not worth the risk.

Interviewing Potential Contractors
Meet with potential contractors in person, preferably on-site, to get a feel for the level and ease of communication and so that everyone can clearly see the site as it is discussed, for better mutual understanding. Ask detailed questions about the contractor's experience with similar projects, whether he has his own staff or uses subcontractors, what materials would be used, cost estimates, and estimated start and end dates. Ask to visit a site in progress, which can be very informative. Don't forget to check for all requisite licensing and registration in your area.

Checking References
Don't be tempted to skip this step, even if you feel you've hit it off with a potential contractor. If, indeed, you've found the right contractor, checking references will serve to confirm your feeling. If, however, the potential contractor has had problems in the past, it is well worth the extra time and effort to find this out before you sign a binding agreement. It is true that any potential contractor will give you names of satisfied customers and not disgruntled ones. Even so, if you ask these past customers enough detailed questions, you can learn a lot about the contractor.

Get at least three references for jobs similar to yours, done in the last year, from each potential contractor, including names, phone numbers, and addresses. Speak to all of them and ask if you can see their homes. Ask each reference what they liked about the contractor, what they didn't like, and most importantly, if they would hire him again.

Bids
Once references have been checked, narrow down your list to three potential contractors and get a written bid from each one. Make sure that the plans are clearly understood and that everyone is writing a bid for the exact same things, including technical specifications, so you can compare "apples to apples" when evaluating competing bids. The bids should also include payment terms and work schedule.

Choosing a Contractor
When hiring a contractor, choose the contractor who offers the highest overall value and not just the lowest price. For optimum success of a renovation project, the importance of good communication and a positive and comfortable working relationship with the contractor cannot be overemphasized.

Get Everything in Writing
Once the contractor has been chosen, but before any work begins, get everything in writing. Include all technical specs, warranties, work schedule, and payment terms, as well as how to make changes to the contract during the renovation process.

Following these steps to hiring a contractor should ensure optimum conditions for a positive working relationship and a successful home renovation project.