Find several general contractors to interview in depth. Start by talking to any friends and neighbors who have recently done a similar project on their home. Were they satisfied with the quality of work the general contractor did? Personal recommendations will give you your best leads in locating someone who is competent. Another option is to talk to local building suppliers and get their recommendations. If all else fails, use the Internet and local phone book to find a minimum of three qualified general contractors.
Prequalify several general contractors by finding out if each one is licensed, insured for property damage, workman's comp and liability. If you have a problem with your project, the licensing board and the insurance companies will be your primary source for getting things straightened out.
Get references from your top three general contractors. Call their satisfied customers and, if possible, check out the work the general contractors did. Many homeowners are proud of the work and are willing to give you a tour if you ask.
Get a minimum of three bids from three different contractors. Get the bids in writing, and be specific on what work will be accomplished, what materials are to be used and when they will be paid for, and the time frame in which the work will be completed.