Background check
Once you've chosen a company you think you might want to use, there are a few more steps you need to take before signing a contract. It may seem like a lot of work, but it can save you aggravation down the road. Start by asking to see photos of recent work and for customer references to check. Of course, no company is going to give out the number of an irate customer as a reference. But if any of the contacts they do give are less than totally satisfied with the job they had done, you should take that as a warning. If you have the time, try to visit the site of a work in progress.
If there's a Better Business Bureau (BBB) in your area, give it a call. Many people don't realize that BBBs keep records of complaints made against both member and non-member companies: ccbbb.ca
With one quick call, you can learn if a business has had grievances lodged against it within the past three years. To retain their affiliation with the BBB, member companies must resolve any complaints to the organization's satisfaction-although not necessarily your own.
As well, check with your local municipal licensing office to verify that the contractor has a valid operating licence. Some trades, such as plumbers, electricians and HVAC installers, require specialized licences. You can verify with their trade association or provincial labour ministry that they're qualified.
You may also want to check with your provincial business licensing office to verify that the company is formally registered. In Ontario, you can conduct a business name search through the Ministry of Consumer and Business Services ($12 in person/$8 online) and get an instant report on the name, address and ownership of any company with a current business registration. Obviously, if the company you're considering is not registered under the name you've been given, warning bells should go off.

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