Collect magazine articles, pictures and other materials that can help you decide exactly what changes you want to make in your home.

Look at features you like in the the houses of friends, neighbors and relatives.

Decide how you would like your remodeling project to look when it is finished.

Think about layout, colors, textures, lighting and other improvements.

Imagine how you will use the space in the future and note any special needs you may have later.

Carefully plan your project from start to finish.

Be specific in explaining to the contractor what you want, and be sure to approve any architectural plans that are involved in the remodeling job before the contractor begins the work.

Comparing costs before you make a fmancial commitment toward any home improvement project is very important. In doing so, you should solicit at least two or three bids from prospective contractors, based on the same building specfications, materials, labor, and time needed to complete the project.

Discuss the bids in detail with each contractor, making certain you understand the reasons for any variations in the prices. Do not automatically choose the lowest price.

Ask the remodeling contractor for local references and find out if the customers were actually satisfied with the contractor's work. If possible, go and inspect the completed projects.

Find out if the contractor is a member of a professional association which has standards or a code of ethics for remodelers.

Also, call your local Better Business Bureau (BBB) or consumer affairs office to determine how long the contractor has been in business and if any complaints have been filed against the firm.

Ask the contractor if the company is insured against claims covering worker's compensation, property damage, and personal liability in case of accidents. Then call to verify the contractor's insurance coverage after obtaining the name of the carrier and agency.

Finally, check with your state, county, or city housing authority to see if the contractor must meet certain licensing and/or bonding requirements in your area. If so, make sure your contractor is properly licensed and bonded.

All agreements and oral promises regarding the home improvement project should be put in writing to protect both you and the contractor. The written contract should also include:

A thorough description of the work to be done, specifying all materials to be used in terms of quality, quantity, weight, color, size, or brand name;

The agreed upon starting and completion dates;

The total cost, with a breakdown of labor and material charges;

A payment schedule;

Any warranties and guarantees of workmanship;

The method for debris and material removal once the job is finished; and

Any additional information pertaining to how you want the contractor to perform, and the type of work you expect

In addition, make sure the written contract includes:

The contractor's full name;

Address;

Telephone number; and

Professional license number.

You should expect to make a downpayment representing approximately one-third of the total contract price. Excluding the downpayment, you should not make payments for any incomplete work. Schedule additional payments at weekly or monthly intervals or after completion of each phase of the project.

Building codes may vary considerably from one jurisdiction to another. Your contract should state that the work is to be performed in accordance with all applicable building codes and zoning regulations, in the area where you reside.

A building permit is required whenever structural work is involved or when the basic living area of a home is to be changed. Separate permits for electrical, heating or plumbing work may be required in some cases. Check with your local department of licensing and permits before the job is started to find out if a building or work permit is required.

If the project does in fact require a building permit, the contractor should apply for it in his/her name. Thus, if the contractor's work does not pass inspection, you can not be held financially responsible for any corrections that must be made.

Do verify the name, address, telephone number, credentials and references of the contractor. Make sure that he/she is licensed, insured, and/or bonded.

Do obtain more than one bid for the home improvement project. Do some comparison shopping in choosing the contractor.

Do check with the building and zoning authorities in your area to determine what permits you need to proceed with your project.

Do include all the terms, conditions, warranties, and oral promises concerning the project in a written contract.

Don't sign the agreement until you have completely read and understood all of the provisions.

Don't submit to high pressure sales tactics by a contractor or sales representative.

Don't sign a completion certificate for the job before it has been inspected and properly completed as agreed to in the contract.

Don't pay for the entire job in advance or pay cash to the salesperson or contractor.

Do contact your local or state government consumer affairs office and/or local BBB, if you are unable to resolve a dispute with your contractor.