Finding the right builder to turn blueprints into reality is one of the biggest challenges facing someone planning to build a new home. Here are some tips to help you with your search.

1. Interview Your Candidates
Make a list of possible candidates for the job based on recommendations from your real estate agent and anyone in your neighborhood who has recently had a home built. Arrange an appointment to meet the contractors separately and show them the plans for your home. You will be judging the contractors not just on skill and business sense but on trustworthiness. During the interview, do they listen carefully to what you said, responding with questions and suggestions? A house normally takes several months to build. Would you feel comfortable dealing with the person on a daily basis for that period of time?
2. Run Background Checks
Contact your local Better Business Bureau and your state’s nearest department of consumer affairs or consumer protection agency to ask whether any complaints have been lodged against your contractor candidates. Keep in mind that not all complaints may be serious. Ask the candidates for bank and business references, and for the names of several clients for whom they have worked, and then follow up. When you talk to a homeowner, separate facts, such as whether the job came in on schedule and within the budget, from opinions, such as whether the contractor was sensitive to the client’s needs.
3. Is the Contractor Insured?
Check to be sure the contractors you interview carry insurance that meets the minimum requirements of your state. Ask the contractor to have his insurer mail you a certificate of insurance. As in many states, contractors must also carry workers’ compensation insurance as part of their licensing requirement.
4. Is the Contractor Licensed?
Contractors are regulated by state, so you can check the status of your contractor’s license whether it is "current and in good standing" with the appropriate agency in you state. The name of the agency varies from state to state, but in general, look in the government section of your phone book under contractors or licensing. In Massachusetts all General Contractors and Home Improvement Contractors MUST be licensed. The Commonwealth of Massachusetts State Board of Building Regulations and Standards are in charge of all licensing and regulatory actions for contractors.
Be aware of your state lien laws. For example, if you have paid your contractor in full but for some reason he has not paid one of his subcontractors, then that subcontractor might be able to put a lien on your house.
5. Call in Competitive Bids
Bidding works only if the invited contractors are asked to bid on copies of the same complete set of plans and specifications. Analyze the bids as carefully as you can, and don’t automatically assume the lowest bid is best. If you have done your homework properly and the contractors are equal in resources, skill, and excellence, then the bids should all be within 5 to 10 percent of each other.
6. Before You Sign
The written agreement between you and your contractor explains your relationship in legal terms.  A typical contract between owner and contractor defines what is meant by the contract documents (these include the drawings for the project), lists them fully, and describes the scope of the job (what the job will include and what it won’t). It includes dates for the project to start and to finish, and states the cost of the job, the payment schedule, the size of the down payment, and the conditions for final payment.
The contract should also specify all materials to be used, including quality, quantity, weight, color, size, or brand name where applicable. Experts advise that, except for a down payment, you avoid making payments for work that has not yet been completed. You and your lawyer should carefully review any contract before you sign it.
7. Stay Involved
Good communication between home owner and contractor is essential to a successfully built home. That means staying involved from beginning to end.