For a remodeling job involving many subcontractors and a substantial amount of money, it is wise to protect yourself from liens against your home in case the contractor doesn't pay subcontractors or suppliers. If you can't pay for a project without a loan, add a clause to your contract stating it is valid only if financing is obtained. When signing a contract, limit your first payment to no more than 30 percent of the contract price. The remaining payments should depend on the progress of the work. Ten percent of the contract amount should be held back until the job is complete, and all problems, if any, are corrected.
Some states have home improvement laws that specify the amount of deposit and payment schedule.
Check with your state and local consumer protection offices to see if there is such a law in your community. Thoroughly inspect the contractor's work before making final payment or signing a completion certificate. Work with an experienced lawyer in your state.