For a job of almost any size over a few hundred dollars, it is usually important to have a written contract.   Here are some factors to consider as you get ready to hire your contractor:

Standard contract terms

Most states have standard contract language that your contractor should be using for a simple contract between you and them.  Research online the standard contract language for your state before you sign anything.   

Non standard contract terms

Be very wary about signing any terms that diverge from the standard terms recommended for your state.  Unless you really understand the non standard terms and are sure they are okay for you, you might want to have a lawyer review any non standard terms before you sign anything.           

Permits

Make sure your contractor knows which permits they will need for the work you need done and then make sure they get any and all permits for your work.  Do not under any circumstances let them talk you into skipping the permit step.  There will be significant liability for you if you do this, especially when you decide to sell your house.

Dispute Resolution

If you research contractors carefully before you hire them and if you mange the project all along the way you can significantly reduce the chances of having a dispute at the end of the project.  If you and the contractor cannot agree on something important (usually money related), then there are usually well defined procedures that vary by state.  Look on the Internet for guidelines regarding service contractor dispute resolution for your particular state and make sure you understand your options before you move your dispute forward.

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