It's time.
You have finally decided that the project you have been putting off needs to get done. It's time to hire a contractor.
Do not rush this decision. Choosing the right contractor will save you countless headaches (and money) down the road. The trick is to determine who the "right" one is. Here are several points to consider:
How long has the business been in operation? If it's too new it may not have enough referrals to verify its workmanship. However, an established company may be relying on the reputation of an owner that is no longer involved in the production. Perhaps a grandfather that was passionate about his craft created a strong reputation, but his son(s) and/or grandson(s) do not have the expertise that the reputation was built on. Do your homework and ask questions. Get referrals and view past work.
Has the owner ever bankrupted another contracting business? If so, what happened to those customers and their warranties? While not entirely negative, it warrants further investigation. A simple search on a computer can reveal valuable information.
If your contact is not the owner, then what is your contact's background? How long have they been with this contractor and/or in the trade that you are hiring for? If problems arise, who do you turn to for help?
Is the contractor licensed and bonded in your city? Who pays for the permit? Most legitimate contractors will pull all permits. Keep in mind that if you pull the permit, then in most cases, you take responsibility for any injuries, code violations, etc... No matter what a contractor tells you, do not pull any permits unless you are personally doing the work. Keep the responsibility on the contractor. If an inspector finds a violation it will be the contractor's duty to correct it.
How competitive is the quote? Get at least three for any large project. There shouldn't be drastic variances among reputable contractors.
Are the worker's sub-contracted? If so, how often do they perform work for your contractor? Many workers are sub-contracted and this should not deter you away from a contractor you like.
Be cautious if a contractor offers quotes on "everything" in your house. Search for ones that are job specific. You do not want a contractor that does bathrooms, concrete, insulation, asphalt, windows, etc... You are not hiring a "jack-of-all-trades".
What is your "gut" feeling?
Did the contractor address your concerns?
What questions weren't answered and why not?
Was the proposal done in a professional manner or was it merely a sales pitch?
Finally, has anyone you know and trust used the same contractor with positive results?
You are about to make an investment in time and money. Take the time to address most or all of the listed questions. Afterall, you are the customer. You deserve the best service and workmanship for your money.
Good Luck on your project!