A good contract identifies what will be done, how it will be done, materials, model numbers, dates and payment schedules - the devil is in the details, and the details must be in writing. Drawings are a must in most remodeling projects. If you don't have a clear written understanding of what you are purchasing than you are asking for trouble. You may want to employ an independent advisor. See A Building and Remodeling Checklist .
Work done without permits is usually easy to spot.
Such work is characterized by poor installation, unsafe electrical wiring, and is generally sloppy. Work done without a permit may invalidate some aspects of your homeowner's insurance. A well-organized contractor will apply for a building permit early, minimizing delays. In most cases, building permits can be issued during the time it takes to plan a project. Obtaining a contractor's license in most states is also very easy.