Contingency fees for "general conditions" will typically be worked into the estimate price of a project upfront. General conditions could include unforeseen change-orders, utilities, weather-related problems and more. Upon completion of a job, these fees, if unused, should be credited to the building owner. Throughout a project, keep on top of the amount of contingency fees being used and for what purposes.

Insist that the contractor get multiple bids from subcontractors. If not asked to do this, some contractors may continually use the subcontractors they "know" and not try to find the best price for the customer.

Ask to see options on various materials. Sometimes a cheaper material may do the job just as effectively as one that is more expensive. For example, a brick industrial building that is adding an unheated storage warehouse that will be located in an area not seen by the general public could substitute an exterior finish that is less expensive than brick, such as steel siding. Brick costs up to three times the price of steel siding so this can dramatically affect the price of a project if the contractor doesn't present all the options.

On a sworn statement, watch to see how many times the contractor's name appears and in conjunction with what jobs. If the contractor's name is appearing with numerous jobs - landscaping, carpentry, roofing - it's likely that susbcontractor's bids are being marked up, unless you know that the contractor's company is handling these various jobs.

You want to see a detailed proposal that clearly outlines the various costs of the following main areas:

Typically included in general overhead costs are insurance, taxes and supervision. If these appear as separate line items, ask for an explanation.

Unfortunately, some contractors will knowingly bid low to win a project, then once a job progresses and the owner has already invested significant time and money ina project, begin billing for "unforseen" charges. To help prevent this, insist on a detailed proposal and ask for explanations of various costs.

Check references. According to Steve Wydeveld, chief building official for Will County, the best references come by word-of-mouth. "Talk to at least a half dozen past customers. Find out where the last few completed buildings are located and check them out," Wydeveld suggested. Ask the contractor what municipalities he has built in, then call the cities to gauge their reaction. Upon registration with a municipality, a bond is taken out on a contractor. If the contractor engages in bad business, the bond is pulled. Ask the city building official if there has been a problem with a contractor's bond or any past work. If the building official is reluctant to give information, a good source may be the building department's administrative staff - as the front lines, they are usually well informed.

Ask for details on change-orders. Sometimes they aren't necessary or could be done more cost-effectively. For example, there are more affordable options to hauling excess dirt off a site. The excess dirt could be spread around the job site, used for back fill in the foundation or taken to another job site.

Get a committed schedule. Though the contractor can't guarantee how long it will take to obtain a permit, he can adhere, to the best of his abilities, to a schedule that runs from receipt of permit to completion. Legitimate issues do arise that affect the time frame and price of a project. Circumstances beyond the control of hte contractor could lead to a longer than expected waiting period for a building permit. This could potentially push the start of a job into worse than anticipated weather conditions, such as extreme cold and snow, making it necessary for extras like temporary heating and extending teh timefram of a job to wait for the ground to thaw.

To find out if there has been legal action or official complaints filed against a contractor, the Better Business Bureau may be a good source, though people don't always take the time to file their complaints. The Illinois attorney general's office can supply a list of complaints, if any, that have been filed against a contractor. This information can only be received via U.S. mail by calling 217-782-1090 (the web site is www.ag.state.il.us). The local county state's attorney's office may be sources as well.