We've run a couple of news articles over the last couple of months about a government pilot scheme for a voluntary Quality Mark scheme for builders and more recently about the fact that many homeowners are contributing to the problem of cowboy traders by agreeing to VAT-free cash deals in a bid to save money. This week we tie it all together, with our own guidelines on just how you can steer clear of the cowboys.

Although it is no guarantee that the work will be sound, these days many tradesmen rely on word of mouth to generate business. Those who do are aware that this only works if the quality of work remains high. So recommendations from friends or family who have recently had similar work done can be a quick and easy way of finding a suitable builder.

If you can't do this, or want to be more thorough, then the best thing to do is not simply phone up the first alphabetical listing in the yellow pages, but to check with one the trade associations, who should be able to provide you with a list of reputable builders in your area. The Federation of Master Builders (www.fmb.org.uk) or the National Federation of Builders (www.builders.org.uk) are probably the most arduous in their membership criteria. They have strict membership criteria covering workmanship, financial status and health and safety and also operates a Code of Practice to help safeguard customers.

If a builder is promoting itself as a member of another group, you should check out the association and make sure that the membership requirements are rigorous enough to be of any worth.

From your shortlist of builders, obtain itemised quotations in writing from at least three builders and make sure you are being quoted "like for like" (a detailed specification may be appropriate).

Don't automatically go for the cheapest quote. You should do some thorough checking before you get a proper quotation. Here are some areas that you should look into:

• Ask each builder you've selected to provide at least two or three references. Contact the people who provided the references and find out how happy they were with the quality of workmanship and the builder's conduct. Inquire about whether the builder is tidy, punctual, meets deadlines and if they would use him again.
• Find out about the builder's expertise in your particular type of project. Try and have a look at a previous job that the builder has done that is along the same lines.
• Ask about the standard payment terms that the builder works to. Does the builder want to be paid on completion or in stages? Avoid complete up-front payment at all costs.
• You should also try to avoid paying a cash deposit, unless you request specialist budding materials or the job is likely to take a long time to complete.
• Steer clear of `VAT-free' deal. You won't have a valid contract if there is no proof of payment and a builder who is VAT registered is more likely to be above board.

Some other questions to pose are:

• Will the builder give you itemised invoices?
• Can he give you a final completion date?
• Will he accept a penalty clause on failure to complete on time?
• Is any planning permission is required for the work and whether they will need to apply for planning, water, sewerage or building regulations approval?
• Will he agree to independent arbitration should there be any dispute?
• Is Ask whether the builder is insured against claims covering property damage and personal liability in the case of accident or injury?

Get the answers to these questions in writing if you can.

Put details of the job down in writing - the more thorough you can be, the better. Your contract should outline what work is to be done, start and completion dates, security and safety, catering and lavatory arrangements, disposal of waste materials and hours of working, where these factors are appropriate. It is an absolute must to agree the payment terms clearly in writing.

The NFB encourages its members to use the JCT building contract for homeowners and occupiers - a straight-forward, plain-English contract - which sets down in writing what's expected of you and your builder, such as payment terms and agreements, helping to avoid any potential disputes. For a copy, priced £9.95, call CIP on 0121 722 8200 or order it online at http://www.buildingcontract.co.uk.

Consider taking out a warranty which insures you against future problems with your building work. The NFB operates `Benchmark Plan' - a members-only insurance scheme which pays out the cost of correcting any building work defects for periods up to 20 years after the job is completed.

Two useful publications, called `Avoid Cowboy Builders' and `Finding the builder who's right for you,' are available free of charge from the National Federation of Builders, Construction House, 56-64 Leonard Street, London, EC2A 4JX. Tel 0207 608 5150.

The Quality Mark builders scheme is to be given full public trials in Birmingham and Somerset from the 22nd May onwards. If you live in one of these areas then the scheme will allow you to find a reputable builder to do "a good job for a fair price". By using a Quality Mark builder you will know that the company has been subject to a rigorous and independent inspection, including an on-site inspection of their work, that the builder will work to a Quality Mark code of good practice and will also give a free six-year warranty on their work.