Our advice can be summed up in three words... plan, plan, plan!
The real key to most successful remodeling projects is thorough advance planning. The first step is to clearly define your ideas by preparing a well-detailed needs list. You should attempt to be as specific as possible with respect to the materials, finishes, and products to be used. The next step is to agree upon a budget that is affordable yet realistic, based upon the work you wish to have performed. Once you have established needs and budget, then some design expertise by an architect, designer, or design/build contractor is in order. Many general contractors have in-house design services. The completed design should then be bid to at least three reputable general contractors. Make sure that these contractors are licensed and have all the proper insurance is required to perform such work. Remember the cheapest price may not give you the best value. A real professional will be anxious for you to visit previous jobs to see his fine work and talk to his satisfied customers.
Additionally, you should contact the Contractors State License Board and the Better Business Bureau to make sure there are no complaints against that contractor. Also, both of these organizations offer very helpful and highly informative pamphlets free of charge.
When it comes to the contract, make sure that everything is in writing-leave nothing to chance. If it's not in writing, you probably won't get it. Finally, prior to making the final payment, make sure that the contractor provides you with releases of lien for all labor and material supplied to the job.