Properly executed change orders can reduce misunderstandings and cost overruns. Change orders should be signed by both the homeowner and the contractor. When possible document and or recap all conversations in writing or email. Keep a log of all conversations and copies of all documents, correspondence, canceled checks, change orders, receipts, etc. It is always better to have copies of everything related to your project if a discrepancy comes up later.
Money is often one of the biggest issues that come between homeowners and contractors.
Most contractors will allow payment in installments. The most common practice is for a sizable down payment - a third to a fourth of the total project cost. It is suggested that payments not get ahead of the work completed. Unfortunately it is not unheard of for some contractors to run out of money before work is done. Establishing an escrow account at a bank may even be suggested for larger projects.