"Do you have a list of references?" It's a question that homeowners have been told to ask every prospective contractor with whom they consider doing business. Some of us call them, and some of us, unfortunately, don't. We're too busy, the neighbor down the street gave this contractor a glowing recommendation and figure that's good enough for us, or we've been blindsided by those beautiful photographs the contractor took of his alleged last project -- and besides, we're in a hurry to get this project completed before the relatives visit this summer.

Asking for references is a question you can't afford not to ask. You might be surprised to learn, however, that you can't always trust that you're getting a reliable picture of your prospective contractor by calling these three names he provided you. How long ago did he provide his services to these references? Playing devil's advocate for a moment, what if these jobs were performed several years ago in another state, and your prospective contractor has since set up his own business in your home state, leaving a trail of dissatisfied customers behind?

You have to know what to ask a contractor's references before you stamp your seal of endorsement on him and get ready to write him a fat check. Specifically, you're looking for three references -- and not just any three references. You want the name of a current client as well as the two clients the contractor serviced prior to his current one. In other words, you want the names of recent customers. Glowing reports issued several years ago are of no interest to you as a prospective client.

Once you've gotten those three names, call every one of them, and ask them the following questions:

• When was the project performed for this client?
• How did the client hear of this contractor?
• Did the job begin on the agreed-upon date?
• Was the job finished on the agreed-upon date? If not, why not, and did the contractor attempt to charge the client more money for the extra time required to finish the project?
• Did the contractor and his crew report to the job on time each day?
• Was the client issued a detailed estimate prior to signing the contract? Did the contractor explain all terms of the contract, including guarantees? Did the client get everything in writing, or did he have to ask? If the client had to ask for something in writing, did the contractor issue any resistance to that request?
• Did the contractor complete the job at the agreed-upon estimate?
• Did the contractor "surprise" the client with any additional charges, or did he approach the client, explain the situation and ask permission before moving ahead with something that required an extra expense? Did the client feel the extra charge was justified and that the reason for it was clearly explained by the contractor?
• Did the client experience any "surprises" throughout the duration of the project -- whether it be extra charges, poor craftsmanship, different materials used than what was agreed upon by the client and contractor prior to the start of the project?
• If and when the client need to contact the contractor during the project's duration, how accessible was the contractor? Did he leave a cellular phone number and/or pager where he could be reached at all times?
• What was the client's opinion of the contractor's craftsmanship? The materials he elected to use, and their perceived value for the cost?
• Was the contractor friendly and pleasant? Professional?
• Would the client hire the same contractor to do another project?

If all of the prospective contractor's references leave you confident in his abilities, don't sign a contract before you ask him a few questions yourself, including whether or not he's licensed in your home state; how many projects he's completed within the past year that are similar in nature to the one you're wanting to complete; whether or not your project will require any permits; what kind of insurance the contractor carries; whether or not he plans to use subcontractors on your project; what kinds of standards those subcontractors are expected to uphold (timeliness, professionalism) and whether those standards will be guaranteed in writing before the start date of your project.

You may feel as if you're firing your prospective contractor with "20 Questions" and giving him the impression that you don't trust him. However, the reality is that contractors are used to being asked such questions. They're working within an extremely competitive market, and the contractors who are right for your project are the ones who will answer your questions willingly and with a smile. If you have any doubts, call your local Better Business Bureau or keep looking until you find someone with whom you're willing to trust your home and your hard-earned money. If your search for the best contractor takes much longer than you anticipated, you'll never be sorry. And if this delay causes you any inconvenience, rest assured that it's much less inconvenience than the one suffered by homeowners who fail to ask important questions -- and who lose money and much more as a result.