Quote from @Victor S.:
Just like you would vet your tenants, vetting contractors is paramount as well. Will also mentioned detailed contracts, penalties, clear RAA, etc. I think there needs to be some sort of an escrow service established that would shield both the customer and the contractor. Say, you have a large job that a normal contractor would require an advance for. It's great and all, but doesn't protect you from them doing a quick one on you. You would then deposit this advance into escrow and the contractor would have to provide some sort of proof on where these funds would go/went (they could purchase materials equal to said amount and present the invoice as proof). It could still go sideways with either party reneging, but that's where a solid contract comes into place. At the end of the day, nothing is guaranteed, so you have to do your best in protecting yourself, aka risk management.
Victor - do you have a sample contract you could send me?
