1. Contract negotiation - Before you have committed to or paid anything you have the right to sit down with someone you trust, preferably someone with legal expertise, and write up a contract. This is the time when you have the most power for negotiation. You want to make sure that you cover yourself from responsibility from what the contractor should be held liable. Although virtually anything can be brought up for inclusion and negotiation in the contract, below are a few items and issues to consider so as to have a strong start to your working relationship with your contractor and subcontractors.

a. Make sure that the contractor has appropriate licenses to perform the work that you are hiring him for. Make sure that the contractor also checks for the certificates and licenses that his subcontractors are required to have.
b. Determine who will be responsible for obtaining permits and scheduling inspections.
c. Your contractor should be able to provide you with evidence that he carries insurance with an appropriate amount of coverage. Subcontractors may be covered under the general contractor's coverage, but be sure that if they are not that your subcontractors have their own coverage as well.
d. Your contractor should not only be looking out for the safety of his workers, but also for the safety of the homeowner. If there will be any situations that may be considered hazardous to you as the residents, you need to have that information disclosed. A contractor safety agreement should be written up and signed by the contractor and any subcontractors not included under the contractor's coverage. As medical suits are becoming easier to file and the amount of money awarded continues to rise, you cannot afford to be complacent about making sure that all worker's medical coverage is squared away.
e. Legal requirements, specifically those found under OSHA requirements, need to be strictly adhered to and proper training should be provided to all employees.
f. Avoid surprises by agreeing that all materials costs will be included in the cost of the job. The same rule applies for tools. Those supplying the labor are to be responsible for the purchase and maintenance of their own equipment.
g. Come to an agreement ahead of time for who will be responsible for cleaning and for the disposal of hazardous waste.

2. Payment and performance - Both payment and performance expectations should not only be central to your contractual agreement, but they should be clear and detailed enough to solve any disagreements about compensation and workmanship that may arise during the course of the job. Be clear about how, when and what the contractor will be paid and whether or not the subcontractors will be paid by you or through the contractor. Be clear about what kind of job performance is acceptable and what is required for a satisfactory job completion. Do not sign off on the work (through a Work Completion Certificate) unless your contractor provides proof that he has paid all of his suppliers and contractors. Failure to do this could get you stuck with paying the bill.

3. Choose wisely and include both contractors and subcontractors in legal agreements - You really should consider the pool of subcontractors that your contractor works with when choosing whether or not to work with any specific contractor. Additionally you need to require that all subcontractors are to be bound by the same rules, agreed to contractually, as the contractor is bound by.