Excellent question! In addition to the general advice found in the answers to some of the questions below, remember to ask lots of questions.
Many people are concerned about price, but prices can vary significantly depending on the level of service and the quality of materials on which the estimate is based.
Competitive bids assume that the bidding remodelers will do the same quality of work, have all the appropriate insurances, warrant their trades the same, use the same materials, adhere to the same schedule, and provide equal levels of service. 
Even if the prices are comparable, the same price can get you a wide variety of results.

Other considerations to keep in mind include:

• Do you plan to live in the home during the remodel?
• Will contractors be inside your home?
• Do you have children or pets?
• Would your project value be enhanced by using a qualified designer?
• Will multiple trades be involved?

First, be sure that they are registered and/or licensed with the state to do business as a remodeling contractor. Check, too, for membership in local and state remodeling professional organizations, such as NARI and NARI-Idaho, and whether they have certifications in their trades (i.e., Green Certified Professional Certification, Certified Remodeler (CR), Certified Remodeler Specialist (CRS), Certified Remodeler Associate (CRA), Certified Kitchen and Bath Remodeler (CKBR), Certified Lead Carpenter (CLC), Certified Aging-in-Place Specialist (CAPS), etc.). Other factors to consider may include length of time in business, reputation, recommendations and references, and membership in local business, civic and community organizations.
NARI offers the following questions you should also ask of prospective remodelers:

• How long have you been in business?
• Who will be assigned as project supervisor for the job? 
• Who will be working on the project? Are they employees or subcontractors? 
• Does your company carry workers compensation and liability insurance? (Always verify this information by calling the agency. A copy of an insurance certificate does not let you know if the policy is still current. Even if the certificate has an expiration date. you cannot tell if the insurance has been canceled by either party. If licensing is required in your state also ask if the contractor is licensed and call to verify compliance with the law. Not all states offer or require licensing. Check with your local or state government agencies.) 
• What is your approach to a project such as this? 
• How many projects like mine have you completed in the past year? 
• May I have a list of reference from those projects? 
• May I have a list of business referrals or suppliers? 
• What percentage of your business is repeat or referral business?

There are many. Here are just a few…

• Strite design+remodel is a local and national award-winning remodeling company that has served the remodeling needs of Treasure Valley residents since 1975.
• Jim Strite has been a major force behind improving the industry and lobbied for more than 20 years to secure consumer protection measures, including the development of our current contractor registration law.
• SDR's team approach, maintaining its core team members for the last 18 years, has been a primary factor in providing excellent customer service.
• SDR has a reputation for excellence and invites you to view our client list and talk to our clients about their experience with us.
• SDR is a member of Guild Quality, a third-party customer satisfaction survey and reporting company, and has been recognized as a Guildmaster or Guildmaster with Distinction for the last four years in a row. According to Guild Quality, over 97% of our customers surveyed since 2006 would recommend Strite design+remodel to others compared to a national average of 60%.
• Strite design+remodel has qualified designers on staff to help you bring your remodeling vision to life.

When new home building declines, some home builders look for other ways to generate revenue, and remodeling seems to be among the more popular. Yet, when it comes to remodeling, there are many factors involved that new home builders don’t typically face. Retrofitting a space is more complex than building something from the ground up. This is true even when adding onto your home, as it will still require blending the new area into an existing structure and connecting all the necessary services (e.g., electrical, heating and plumbing, etc.) to the original home. Other considerations will include maintaining the livability of the existing home for the family and pets throughout the process, which is a situation unique to remodeling and that reputable remodeling contractors are experienced at handling.

Strite design+remodel incorporates the design and planning into all of our remodeling projects.  SDR has the remodeling experience as well as the understanding of its cost.  Having in-house design professionals allows SDR to keep the budget in mind throughout the design process.  This solidifies the cost effectiveness of Strite's systems and processes.

If you are getting competitive bids be sure to only work with reputable companies.  We also recommend researching articles and tips from the industry websites such as RemodelingMag.com and NARIofIdaho.org to learn more about the importance of selecting a professional remodeler.

These days, we are all looking for the best value for our hard-earned dollars.  So, when it comes to remodeling our home, which approach will yield the highest value?  After many years in the remodeling industry, our experience tells us that homeowners ultimately have four choices when it comes to remodeling. 
1.      do it yourself
2.   act as your own general contractor
3.   hire an independent contractor
4.   hire a professional remodeling company
There are challenges and benefits to all four approaches, but determining which is best for you and your type of project is the key.  Our intent is to provide insights and information that can give you the best value and may even help make your remodeling experience enjoyable.

1.    Do It Yourself.
Many people enjoy small building projects and may be considered very handy around the house.  However, taking on a remodel, of any scope, typically involves much more than most do-it-yourselfers realize. These three basic “realities” should be carefully considered before committing to DIY:

Time:  How much time do you really have to devote to the project? Most of us have family, a full-time job, and are often obligated outside the home. Chances are that free time is already at a premium.  A realistic equation: 24 hours - 9 (commute/work) - 7 (sleep) leaves only 8 hours of “free” time from which we must subtract the basics:  eating, exercise, and recreation.  Most anyone can adapt for awhile but you must consider how your quality of life will be impacted as you oversee, labor, and live 24-7 in the project.  When you get off work you’re already home.  We know the expression “time is money”.  Yes, you can save money but will the dollars saved be worth the cost of your time?  

Tools:  Do you have the tools and supplies necessary to complete the project? This is a buried cost that is not often part of the original budget setting.  Not every homeowner has a shop equipped with table saws, specialty blades, routers, extension ladders, nail guns, proper lighting, etc.  Of course, you have the option of renting or buying (this may be the justification for that tool you didn’t get for Christmas).  Can you use the tool without injury to yourself or marring material?  If buying, should you purchase top quality, mainstream, or refurbished?  Will it strain your budget?  If you are not already outfitted with the items you need, or have little to no experience in this area, it is conceivable that the outlay on tools and supplies could exceed that of hiring a professional to do the job. 

Skills:  Crucial to keeping the costs down on a remodeling project is the ability to consistently produce the job on time and on budget. This requires a skill set encompassing not only mechanical ability, but effective people management and code-compliant job execution.  Even a small remodeling project may require deconstruction (ripping out pre-existing walls, cabinets or plumbing), design considerations, framing, drywall, finish carpentry, and plumbing or electrical work.  Some projects need permits to begin and subsequent intermittent approvals from the building department.  And last but not least, sharpen your bookkeeping skills!  You are responsible to monitor and maintain the finances.  Some people truly have the skills, experience and resolve to do it themselves. The question is, do you?

2.    Acting as your own General Contractor.

The decision to act as your own general contractor is intended to eliminate the cost of job oversight from your budget.  Similar to Doing It Yourself, being your own GC requires staying on top of all project details.  This process begins before a shovel ever breaks the ground and can continue past the time the project is a physical reality if there are warranty and/or punch list items.  Owner-builders with some knowledge of building trades and management capabilities can run a successful remodel and save money. For your benefit, let’s explore some critical GC activities that can quickly tap into any job cost savings. 

Assembling the Team - Obtaining multiple estimates and interviewing subs and trades people. First of all, remodeling and new construction are not the same animal.  A remodel must tie into and complement the existing structure, and often reveals unforeseen challenges.  How does one identify the dream team that can complete your project as envisioned? Friends? Yellow Pages? The BBB?  To be sure, these can be helpful.  To assemble the right team at a price that fits your budget demands at least a general knowledge of legal requirements, labor and material costs, and sub/tradesperson capabilities and craftsmanship. Questions to ask: Are they experienced in the trade, registered, bonded, insured? Is there a track record -- can they refer you to a satisfied former client?  With bid comparisons -- which is best - low, medium, high? Have I priced the entire scope of work? Should I adjust my budget categories? This process takes knowledge, industry savvy, time, and trust -- you will be spending lots of time with your team.

Project Management:  Typically, reputable subcontractors and trades people have several projects in the works at any given time, and will incorporate your project into their existing schedules.  This and other factors beyond your control (weather, delivery delays, illness), will require adjustments to your production calendar.  To ensure you are getting the quality you paid for, and pass inspections, you should inspect materials and oversee workmanship.  Your ability to clearly communicate while sustaining the team’s momentum is essential to successful project management.·       

Scheduling:  Oh the best laid plans . . . . As GC, one of your goals is to produce the job on-budget and on-time. Accomplishing this is largely dependent on the level of the team’s commitment.  Nonetheless, scheduling can be affected by anything from weather to looking for the lost family dog.  Remember, you are coordinating multiple contractors, trades people, inspections, and material deliveries. This is in addition to making it to your child’s recital or ball game.  You must be realistic in your scheduling so that it accommodates the unexpected.

Monitoring the Finances:  Hopefully, you were familiar enough with labor, material and market prices to negotiate fair prices for each cost category.  A common mistake is accepting a bid based solely on price. A “low ball” bid can increase the likelihood of change orders (costly in time and money) because the sub or trades person’s estimates were unrealistic or inaccurate.  Reconciling and/or minimizing cost overruns and keeping track of the day-to-day expenditures and rate of production is all part of the bookkeeping process. Acting as your own GC can be rewarding and can save you money – but it’s no walk in the park.  Hopefully, the insights we’ve shared will help you make a realistic and informed decision that’s right for you and your family.

3.   Hiring an Independent Contractor (GC).

Many homeowners recognize that they are not the person to do the work or to supervise the construction. One option they have is to hire a general contractor that can manage the project for them. Hiring a GC will cost more than doing the work or acting as your own contractor. However, the additional cost needs to be balanced against the value of your time, energy and family life.

Once you have decided that there is value in not doing it yourself, choosing the right General Contractor—the one that fits your budget, your timetable, your standards, and your expectations—becomes the most important factor. 

Many homeowners begin this search by requesting bids and comparing prices.  But Buyer Beware!  Low bids can be deceiving.  More attention needs to be placed on performance and quality.  Of course you always need to check references, ensure that contractors meet registration and/or licensure requirements and have adequate insurance. 

Be sure, too, that you trust the subcontractors the GC will send to your home and around your family for the duration of the project.

Home Builders v. Remodelers: An Important Distinction
In today’s economy, some homebuilders have turned to remodeling to generate revenue. Keep in mind that remodeling is very different from building a house, as it requires working in an existing structure as well as working in an environment where people live and may be present throughout the day.  Make sure that any contractor you choose has experience in remodeling existing homes and talk with their remodeling clients. It is important that your General Contractor will be sensitive to your family schedule, accommodate your need for privacy and cleanliness, and respect your personal property.

4.   Using a Professional Remodeling Company

Professional remodeling companies come in different shapes and sizes, from the one man in a truck to the full-service design-remodel business like Strite that has a staff of designers, project managers, and others that ensure every detail of your project is completed to your standards, on budget and on time.

Using a professional remodeling company can actually save you money, as they have the experience to expect the unexpected, the skill to execute your vision, and the ability to pass volume savings along to you. When evaluating remodelers, remember that getting a cost proposal or bid from multiple places is not the best way to compare “value.” Low bids often reflect poor planning that will cost you more in the long run. That is why ensuring that the company you choose has experience, excellent references, and the ability to plan for all the details is essential. On the face of it, they may appear to cost more, but in reality, their pricing will be more accurate, ultimately costing you less with a better result.