(MONEY Magazine) – ACTOR DON JOHNSON WAS the perfect expression of mid-'80s cool when he played detective Sonny Crockett on Miami Vice. But in real life, Johnson can get hot. Just ask him about building contractors. Back in late 1988, when he and actress Melanie Griffith, now his wife, tried to renovate the $1 million, 15- room 1930s farmhouse that they share near Aspen, Colo., a local outfit, Duddy-Viele Construction, gave them fits. Apparently the feeling was mutual. Seven months and $508,272 into the job, Johnson fired the firm. Among his gripes: gaps in the pine floors, sagging ceiling beams and a leaky whirlpool bathtub. For its part, Duddy-Viele countered by saying its workers fixed some of the problems, others were structural ones the firm wasn't asked to correct and that Johnson himself had ordered a rustic look for the floors. The contractors filed for arbitration, demanding $95,813 in unpaid bills. Said Johnson in a press statement: ''Anyone who has ever been on the receiving end of an incompetent contractor should be able to understand my frustration and anger.'' The case is expected to be settled this summer. Don and Melanie are hardly ordinary homeowners, but their remodeling experience is all too typical. Some 8,200 owners complained to Better Business Bureaus about their home remodeling contractors in 1988; only nine of the 137 types of companies tracked by the BBB generated more gripes. Clearly, fixing up is hard to do. What can go wrong? What can't? In Pentagonian fashion, major home renovations costing $10,000 and up are legend for their cost overruns, missed deadlines and shoddy workmanship. Add to that several months of dust, disorder and din, and -- well, you get the idea. The truth is that it's almost impossible to hire someone to create a master suite, remodel a kitchen or convert a basement into a playroom without screwups. (For an all-too-true case history, see page 176.) But there are numerous ways of preventing or at least minimizing the financial and construction snafus that so often bedevil renovations. The three keys: choosing reliable professionals, hammering out detailed contracts with them and holding them to the agreements. First, though, decide precisely how and what you want to remodel or renovate. San Diego attorneys Lesa Wilson, 32, and husband Scott Loosen, 35, credit the success of their $145,000 renovation to the four years they spent considering ideas for reshaping their 1,000-square-foot $280,000 home near the beach and almost tripling its size. They rejected no fewer than 10 designs before settling on the one that best met their primary goal: getting their kitchen to open onto their backyard for easier outdoor entertaining. The couple ultimately chose an architect who designed and helped monitor the job. Among the tasks: transforming their garage into a kitchen, turning the old kitchen into a guest bedroom and converting the first-floor bedroom into a 220-square-foot dining room. The entire project took 7 1/2 months and came in within $10,000 of their original budget. ''If we had remodeled without seeing all the designs,'' says Lesa, ''we wouldn't have been as happy with the results.'' A critical pre-remodeling step is honestly appraising whether you have the temperament to put up with the aggravation of a renovation. If your remodeling job will consume more than 50% of your home's living space or key rooms such as your kitchen or the only full bathroom, you will probably need to camp elsewhere until the work is done. For smaller projects, plan on getting to know your remodelers very well; just ask TV's Murphy Brown about Eldin, her ubiquitous house painter.

FINDING THE HELP YOU NEED Start any renovation by asking yourself whether you can handle alone small fix-up projects like installing light fixtures or floor tiles. Some excellent how-to books, such as the Reader's Digest Complete Do-it-yourself Manual ($22.95) and the Home Repair and Improvement series ($10.99 a volume; published by Time-Life Books, a subsidiary of Money's parent company) may be all you'll need. No matter how handy you are, you will want professional help for big jobs. Straightforward improvements -- a new kitchen, say, or a room addition that doesn't change the structure of your home -- can be handled most easily by a contractor who does both design work and construction. Such contractors often call their companies design/build firms. The contractor will then subcontract carpenters, plumbers and other workers, buy materials, organize work schedules and follow the job's day-to-day progress. If you plan something that will dramatically change the design of your home, such as replacing two bedrooms with a master suite or opening up a kitchen to include a family area, you will probably get the best results by hiring two types of experts: first, either an architect or an interior designer to plan % and oversee the project and then a contractor to build it. Architects are best for jobs involving structural changes such as moving walls. Interior designers generally specialize in making existing rooms more livable. For instance, they can devise a more appropriate lighting system and order hard-to-find furniture, wallpaper and other accessories. You'll pay an architect or a designer a fee of roughly 10% to 15% of anticipated construction costs, or $10,000 to $15,000 on a $100,000 job. Your Yellow Pages probably lists dozens of contractors, architects and interior designers, so selecting ones to improve your home can be a daunting task. Neighbors or acquaintances who have had work done similar to the renovation you plan can refer you to likely candidates. Beyond that, here's how to narrow your search: Start by writing to professional organizations for names and phone numbers of architects or interior designers in your area. The local chapter of the American Institute of Architects can refer you to registered architects who have passed state licensing examinations. Similarly, the local chapter of the American Society of Interior Designers will provide information on its members who have graduated from a four- or five-year degree program. Set up appointments with three architects or designers to explain what you want and how you expect the changes to mesh with your life style. Most will meet with you for an hour or so at no charge to discuss ideas. Before you hire an architect, be sure he or she has handled projects similar in scale to yours: many specialize in new construction. Investigate contractors by asking local architects and designers for referrals. In addition, call your local builders association for names of contractors who are among the National Association of Home Builders' 130 certified graduate remodelers. These people have at least five years of experience owning or managing a remodeling company and take continuing- education courses. Interview at least three contractors and ask them for rough estimates of their fees for your project. Don't jump at the smallest fee. ''The guy with the low bid may take his profit out of the job by using shoddy materials or taking shortcuts,'' maintains Frank Spivey Jr., president of Spivey Construction, a respected design/build firm in Indianapolis. When you've identified a promising contractor, find out the answers to these three questions: Is he solvent? ''The biggest disaster is watching your contractor go out of business in the middle of a job,'' says Todd A. Russell, president of T.A. Russell Construction in Glendora, Calif. In addition to the delay, expense and inconvenience of finding someone to finish the project, you may face claims from subcontractors who have not been paid for their work. For a clue to a contractor's financial stability, ask for names and phone numbers of his regular subcontractors and suppliers. Then call them to see whether he typically pays promptly. If he has been slow lately, that may be a signal of money trouble. Also, be wary of newcomers; an estimated 90% of new contractors go out of business within five years. Is he reliable? Contractors rarely say no to a job. You'll get your best gauge of reliability by visiting at least one of the contractor's clients who recently lived through a remodeling project like yours. Find out how well the contractor met his deadlines and estimated his fee. Since problems probably arose during the renovation -- they nearly always do -- ask whether the contractor handled them satisfactorily. Inquire too whether the work and materials matched the standards originally agreed upon. In addition, be sure the contractor will be using his regular team for your job, not the second- string pickups he might use when he's juggling a number of projects. If he tells you the staff he'll assign have worked with him for less than six months and most of the subcontractors have never worked for him, find another contractor. Is he honest? The Better Business Bureau can tell you if any complaints have been filed against a contractor. You might also check his probity by getting in touch with local suppliers and architects.

GETTING THE CONTRACT RIGHT A contract from an architect or interior designer, usually a one- to eight- page document, spells out fees and payment terms as well as a general description of the work the pro will do. For example, the contract might say that your architect will offer three alternative designs and will visit the job site at least once a week. Ask your lawyer to review the contract. You need to bear down especially hard on a contractor's contract because of its minutia. Every aspect of the renovation should be included. Even a modest job -- renovating a small kitchen, for example -- might call for two to three pages of specifications, known in the trade as specs. Show this contract to your lawyer and your architect or designer if you're using one. For $5.95, the * American Homeowners Foundation, a private group, will provide an eight-page model agreement that you can compare with yours (1724 S. Quincy St., Arlington, Va. 22204). If anything is missing from your contract, such as deadlines, brand names or descriptions of materials, write it in before signing. Be certain that your agreement also lays out the following information: The price calculation and your payment schedule. There are two types of contracts: fixed-price and time-and-materials. A fixed-price contract guarantees your costs. If anything comes up during the job that will change the project, you and the contractor must then sign an official change order noting -- and agreeing to -- any additional related expenditures. In a time- and-materials contract, you will get only a rough estimate of the renovation's cost. Your actual fee will depend on the hours of labor and expenses ultimately incurred. A fixed-price contract is safer, since you lock in costs early. With either type, stipulate the payment schedule. On a fixed-price contract, never pay more than 30% of the anticipated cost when you sign. The rest should break down roughly this way: 30% midway through the job, 30% when the major work is done, and 10% after all remaining details are complete. Make payments for a time-and-materials contract every two weeks or so to cover ongoing costs. The precise materials. Will you get pre-built, modular cabinets (cost: $50 to $60 a foot) or custom-made cherry ones (cost: $125 a foot)? Other key concerns: the thickness and exterior finish of new walls; ceiling textures; brand names and styles of windows, doors, plumbing fixtures and appliances; and the number of electrical outlets, lights and switches in a room.

LIMITING UNPLEASANT SURPRISES Even if you hire an architect or a designer to supervise the project, it's essential to be on the lookout for missteps along the way. Check on materials as they arrive to be sure you're getting what you were promised. If you must move out of the house during the job, visit unannounced several times a week to make sure that work is progressing according to schedule and design. Be firm but reasonable when your contractor misses a deadline. Occasional slippage is to be expected, particularly when there's a reasonable cause. Examples: a snowstorm delays roofwork or the building-supply store must special-order the faucets you crave. If your home is old or has an unusual design, expect other surprises as well. In 1988, Portland, Ore. real estate broker Dale Bernards, 32, and his wife Karen, 29, a dental hygienist, renovated their unusual residence: an imposing 6,000-square-foot castle (shown on page 166) modeled after one in Canterbury, England. When the couple hired an architect and contractor to enlarge and brighten their kitchen, they were told the job would cost $26,000 and take only two months. But an 11-foot arch on a curved kitchen wall ended up needing nine coats of plaster. Resetting the decorative windows to make them open and close required unanticipated extensive drilling . . . Result: the job took 3 1/2 months and ended up $3,000 over budget, an expense the couple decided they had to pay because they felt the architect and contractor weren't responsible for such unforeseen problems. The passage of time lets them laugh off their experience now. ''With an old house, you have to expect everything,'' says Karen. When your renovation is finally over (hallelujah!) but before you've made that last payment, review the work with your contractor to see that all the specs were met. Test the toilets, sinks and tubs for plumbing leaks, look for paint that needs touching up, open and close the doors and windows to be sure they don't stick, and so on. If something needs fixing, have the contractor do it. Then sit back and enjoy the fruits of your laborers.