We hire contractors to build homes, make repairs around our homes, build add-ons to our home, gazebos, pools, plumbing, electrical, many different types of contractors and many different types of projects.
Regardless of what job you are hiring a contractor for, you should always get 3 written bids. You should also ask for 3 referrals of past clients who have dealt with each contractor. Once you have done all of your homework on this part, you should sit down with your contractor and decide on how you will pay him, what your expectations are of the project, what your allowances may be for the project, etc. You also want to ask the contractor about his companies guarantees and warranties after the completion of the job. How long does he guarantee his work, if you report a problem, how quickly will he respond, etc. And then, most importantly, you get everything in writing between you and your contractor. 
If the contractor doesn't want to put what he promises in writing, then run, run, run! You should also remember that if any contractor produces a complicated contract that looks like it is written by his attorney, it is typically a contract that only protects the contractor. I would advise everyone to get a copy of this and bring it to an attorney to review and interrupt the meaning of the contract.
Typically the contractor will ask you to put some money down for the project. This money is typically used to purchase the materials for the project. If it is a very big job, you may want to set up a payment plan of 4 equal payments as the job is being completed. You should always keep in mind that if the contractor does not finish, do I have the money to hire someone else to finish the project. This requires you to never allow the contractor to be paid before the completion of each phase of the project. Another thing you want to keep in mind is that you should never give the contractor the last payment until everything has been personally inspected by you and all items are corrected to your satisfaction.
No matter what the verbal promises are about his coming back, you should request a completed project including all clean up before you give the last payment.
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