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Hiring a contractor to make home improvements is something many people do for the more difficult or skill-heavy jobs. Sure, most of us can throw on a fresh coat of paint or put up new wall paper, but things like flooring tend to be more complicated. If you're using a contractor to install carpeting or wood floors it's important to know who is supplying the flooring supplies. Usually, one of two scenarios is the most common in home remodelling.

The first and simplest scenario involves going to your local flooring supplies store to choose your products. As part of the sale the store provides an installer to work in your home, building the price of that install into the final bill. The customer pays that amount upfront then sits back and relaxes will the contractor come in and does his thing. Pretty straight forward.

It is the second scenario which can be a complicated nightmare if consumers are not careful. In this situation, the customer hires his own contractor completely separate from the flooring supplies themselves. Some contractors will install from a list of materials they get from suppliers they regularly work with. In this case they'll include the cost of all the material and supplies in their quote. This method is pretty safe, but be sure to get an itemized quote and final bill.

Some contractors request the customer to purchase the flooring supplies themselves in order to reduce tax liability. Whether he goes to the store with you, or purchases the supplies for you and then gives you the receipt, you are an easy target for fraud with this method if you're not careful.

Be sure to match receipts with everything that arrives at the job site. Also make sure that nothing is listed on the receipts not used on your project, and pay close attention to make sure everything left over remains in your possession. Contractors who require customers to purchase supplies themselves can find creative ways to take advantage of unsuspecting people.

Finally, be aware of sub-contractors and what they are doing as well. They may not know the arrangements you made with your contractor, assuming unused flooring supplies are free for the taking. This includes everything from carpet scraps to a case or two of floor boards to an extra can of adhesive. If you've purchased these things directly, they belong to you. Don't allow your subs to walk away with a load of your supplies.

Contractors and subs can usually be trusted; it's the dishonest few that make it necessary to be diligent. Be careful and thorough so you won't be taken advantage of.