Perhaps the biggest decision in any home remodeling project is who to hire. After all, the contractor controls everything about the job, from which tradesmen do the work to the quality of the materials being used to how closely the project tracks to the timeline and budget. And that budget could be hefty, with a high-end kitchen remodel costing as much as $150,000.¹ So while researching cabinet styles or soaking tubs may be more enjoyable, it’s essential that you take time to do your homework before choosing a contractor, especially in a hot market. Some top pros may be too busy to take on your project, and you may have to cast an extra wide net to find one who’s available. To find a trustworthy contractor and build a good working relationship, follow these six steps:

1. Compile a short list

The best way to find contractors who are affordable, skilled and reliable is to get recommendations from friends and neighbors — or better yet, other professionals you know and trust, whether it’s your plumber, accountant or attorney. Always drop the name of who referred you. Top pros prefer to work with people who come through their trusted networks for all the same reasons you do. Online ratings services may be a good second option if asking for referrals doesn’t leave you with enough choices.

2. Come with a budget

Whether you’re drawing down savings or tapping the equity in your home, now is the time to set parameters for how much you’re willing to spend on the project. Plus, having a ballpark number will help convince contractors you’re serious and well informed. A good rule of thumb is not to spend more than the value of the space you’re remodeling. For example, the kitchen is typically about 15% of a house’s value, according to HomeAdvisor,² so $75,000 would be a reasonable kitchen budget for a $500,000 house. Primary bathrooms are typically 10%,³ and a finished basement is about 10%.⁴

You’ll also want to have your financing secured in advance, so plan to apply for any loans you need at least several months before you start asking contractors for bids. Or consider borrowing against the available equity in your home with a home equity line of credit (HELOC); with a HELOC, you withdraw funds as needed, so you don’t have to borrow any money until renovation expenses arise. You can pay the bills as they come in with a check or use your mobile and online banking app to transfer funds from your HELOC. Then you repay your HELOC balance over a set number of years.

3. Solicit quality bids

Once you’ve met with contractors and walked them through your plans, ask them to bid on the job and mention that you’re getting bids from others so they know they need to “sharpen their pencils.” Remind them about your connection to their client or business partner and make it clear you’re looking for a quality job, not the cheapest possible one. Tell them that you would love to create a relationship that can carry over into future projects. Of course you want the job done quickly. But knowing that the best contractors are in high demand and that you may need to wait your turn, ask for an estimated start date. It’s better to wait for quality than go with speed, but if you receive more than one competitive bid, timing could be the deciding factor.

4. Vet the candidates

With bids in hand, you can compare each contractor’s price for the job — and adjust your budget or plans as needed. Equally important, take note of the relative clarity, specificity and timeliness of the proposals. Did one forget important details you discussed while another nailed the project you described? These documents can often indicate how detailed and organized the contractor will be on the job. The contractor should be happy to show you their contractor’s license and introduce you to the project foreman who will run the job on a day-to-day basis.

In addition, ask for a list of recent clients and contact a random selection of them to inquire about their experiences. Don’t forget to Google the contractor’s name and company name. Look them up on sites such as Angi.com, homeadvisor.com and bbb.com to see reviews and check for complaints.

5. Seal the deal

After you have checked references, eliminated anyone with red flags, compared the bids and seen some of your candidates’ projects, your choice of contractor may ultimately come down to a gut decision. Which one had the strongest referral from someone you trust? Which one best understood your vision for the project? Which has the best reputation in your community and online? Which one showed you previous work that you loved and that felt relevant to your house?

Once you’ve verbally accepted a bid, the contractor should show you a certificate of insurance, which means their insurance will pay if something goes wrong, and a surety bond, which pays you if they don’t do the job or do it right. Have your attorney review this paperwork and the contract before you sign. Insist on a payment schedule based on the contractor hitting project benchmarks first and you paying for that completed work second. Your contractor should also agree to provide lien waivers for all payments you make — meaning they waive their right to place a lien on your property for the associated work. A small deposit should be the only advance payment. And build a 10% to 20% contingency into your budget to allow for unknowns like termite damage and changes like a pricey countertop slab you fall in love with.

6. Build a strong foundation

Once you pick a contractor, do your part to keep the project on track. With supply chain delays common, prepare to be patient if the start date changes or the work is paused. If the hold-up is another of the contractor’s projects, you don’t want to push so hard you get the “B-Team” assigned to your house. Pay your bills quickly. Learn the names of the regular crew and show your appreciation. Finally, to avoid later misunderstandings, ask for the price of any change you request and write it on the back of the contract for both you and the contractor to sign. Walk through the project with the contractor every day, ask questions and don’t be afraid to probe deeper if you get vague answers. As with any business relationship, you want to pick your battles and stand firm but friendly on what matters.

You can bet that your project will run into unforeseen challenges — they all do — and with a great contractor and a strong relationship, you’ll be able to resolve those problems and get the beautiful new living space you want. Plus, you’ll have a go-to partner for your next project.

At Bank of America you can save time by making your Home Equity Line of Credit payments online directly from any checking or saving account. 1. Enroll or sign into Mobile or Online Banking⁵ 2. Select Manage PayPlan on the account details page of your HELOC account and follow the instructions.