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I promised myself I would say away from this thread, self employed 20 years.
First I'll reiterate the good comments, get a construction contractor attorney to draw your contract language. And the comment about people being very consistent, good people are good to everyone generally, crooks screw everyone around and close to them.
The question is why or what to look for. i'm the trusting type, I miss the obvious. But when I get screwed I study why.
There is something called "addiction to power", which is very deep and common in the genetic code, basically a childish impulse. People who are addicted, screwing someone over is an exercise of their power, they get an emotional "rush" from it when the swindle goes through. Seen it many times. Read the link and understand. Read it twice if necessary.
http://en.wikipedia.org/wiki/Stanford_prison_experiment
There are captains and coronets. The coronet builds the nest. The captain, in the ancient prehistorical sense when these deep human predispositions were written in the genetic code, is a man who screws everyone, robs them blind with no hesitation or compunction.
It's easier to spot when you know what to look for. A captain gives an order and does not care if the order is right or wrong. He likely does not know, technically, right from wrong or how to exert discipline over his childish impulses. What he knows is that he gives the order and someone else pays the price for it. This he watches keenly. In a highly technical society, he is a smart dummy. A captain addicted to power is the worst. He seeks and gets a rush when his mistake cause pain to an other.
And no, this is not economics, finance. It is prehistorical genetic selection. The book on economics was written in 1954.