For example, you can get your own loan or ask the contractor to arrange financing for larger projects. For smaller projects, you may want to pay by check or credit card. Avoid paying cash. Whatever option you choose, be sure you have a reasonable payment schedule and a fair interest rate. Try to limit your down payment.
Some state laws limit the amount of money a contractor can request as a down payment.
Contact your state or local consumer agency to find out what the law is in your area. Try to make payments during the project contingent upon completion of a defined amount of work. This way, if the work is not proceeding according to schedule, the payments also are delayed. Don't make the final payment or sign an affidavit of final release until you are satisfied with the work and know that the subcontractors and suppliers have been paid. Contact your local consumer agency for an explanation of lien laws where you live.