Never hire a builder for their price, you are paying for a service. It is a good idea to hire a contractor for the reliable service he/she can prove they are able to provide you with. You are investing in your home and putting your trust into a person whom you barely know. Your investment will be best placed into the person you feel most comfortable with.

• Are you licensed and insured, and can I see proof of each?
• Do you have references in my area? How can I contact them?
• Can I meet with customers of your on-going projects?
• How many people work for you?
  Who actually will be doing work? What is their level of experience?
• How long have you been in business?
  
• What is your area of expertise?
  Example - Don't hire a roofer to build a bathroom and vice-versa.
• What kind of discounts on products are available to me through your company?
  Example - Many vendors will extend 10-30% discounts on tile, cabinetry, appliances, etc. for contractors that regularly use them.
• Who will design my project?
• Do I need an architect and how much will they cost?
• Will there be any additional costs that have not been explained to me?
• Who will handle any legal permits if necessary and what is the cost of expediting such paperwork?