When underground contractors offer low-priced cash deals, they don't explain that they are passing some very serious risks on to you in order to make their low price possible. If they told you what was really involved, their low price wouldn't look like such a great deal. It would look like the potential consumer nightmare it really is.

The best way to understand these risks is to ask yourself a few "what if" questions:

• What if I give the contractor an advance payment, and they never do the work they promised?

  Without a written contract or receipt for the payment, you could be out of luck. It will be difficult to prove you gave the contractor money-it's your word against theirs.

• What if the contractor damages my home?

  Contractors who operate their business properly have comprehensive business insurance to cover their liability in the event that they damage a customer's home. If the contractor is working underground, it's quite likely that they don't have such insurance and you would have to rely on their willingness and ability to pay damage costs.

  And don't count on your own homeowners insurance policy. It may or may not cover such damage, depending on your coverage.

• What if a worker is injured while working on my property?

  There is no simple answer to this question. Most contracting companies with more than one employee are required by law to have Workers' Compensation coverage to protect workers who get injured. In some provinces, self-employed individuals can "opt out", but they should then obtain private disability insurance coverage to protect against work-related injury.

  In some provinces, if a homeowner hires someone who is not enrolled in Workers' Compensation, the homeowner can be held responsible for medical and rehabilitation costs if that person is injured. If you hire a contractor make sure that your contract includes proof of proper Workers' Compensation or equivalent private insurance coverage. Otherwise, you don't really know what will happen in the event of a workplace injury.

• What if the contractor doesn't pay his suppliers and subcontractors?

  Every province has lien legislation designed to protect the financial interests of suppliers and subcontractors involved in construction work. When you hire a contractor, your contract should specify that a specific amount of money (usually 10 to 15%) must be held back from all payments made to the contractor for a specific length of time (usually 30 to 45 days after the work is completed). If you do this, your financial liability, if the contractor fails to pay suppliers or subcontractors, is limited to the amount of money held back. With a cash deal, where nothing is written down, it's unlikely that you have this protection.

These are just a few of the "what if's" you need to consider. Don't fall for the underground contractor's cash deal. Make certain that you and your family are protected. Insist on a written contract covering all aspects of the work or project. And insist that it includes proof of contractor liability insurance, Workers' Compensation coverage (or equivalent private disability coverage for exempt workers), a lien holdback provision and clear responsibility for compliance with all other applicable laws and regulations.

Also be sure to talk with your insurance company before the work begins-many homeowner policies don't automatically cover construction-related risks.