If the work being done requires a permit, you DO NOT want to hire a contractor who does not pull the permit (thus saving him money-maybe not you). A permit is guarantee the work will be done correctly, but a contractor who is willing to violate the law by not obtaining a permit is almost sure to be one you don't want working on your house.

You need an inspector

"But permits and inspectors exist to make sure contractors don't do really unsafe things to clients who don't know enough to spot the hazard. "

I learned that this is not true, at least in DC, the hard way.

The DCRA is not there to protect the homeowner. They work for the District, not the person being ripped off by the shoddy contractor. If your contractor is caught doing something crazy that violates code, YOU are the one who has to pay the fine in order to get a Stop Work order lifted. Similarly, if the contractor obtains the wrong permit for the project, the homeowner is assumed to be the one who directed him to do so, and is fined accordingly. The DCRA system is set up in a way that assumes that as the homeowner you are in cahoots with the bad contractor in order to avoid complying with the codes. There are a few inspectors who will work with you and who recognize what a bad spot this puts you in. Be VERY courteous with them. You may need their help at some point in the process.

That said, you do want to have a construction expert watching your contractor like a hawk to make sure they are meeting the standards. Chances are you will have no idea whether the contractor is in compliance.

Very little. Inspectors can only look for code violations. We had shoddy work several times in our remodel. The inspector was really helpful in how to fire the people and how to protect ourselves but he couldn't do anything as it was not a code violation (the things that were that the contractor wanted to hide, I was able to DIY correct). It can be shoddy work and as long as it meets code you will pass. I found the inspectors really nice and helpful.

I disagree with PP. It is possible for a job to fail inspection, which means the inspector spotted something unsafe -- this has happened to me. Now it's true the inspector doesn't catch everything, and doesn't care about aesthetics; also, if the inspector catches it but your contractor doesn't fix it (or wants more money to fix it) you are in a tough spot. But permits and inspectors exist to make sure contractors don't do really unsafe things to clients who don't know enough to spot the hazard. This is why you should always get permits and inspections for electrical work and structural work.

For shoddy work that isn't a safety issue, your best bet is to be present on-site and watch and ask questions. Be a PITA on your own behalf.

Absolutely none. Pulling permits is legally required by the city, but they do not vet the contractor performing the work.

We are having a kitchen reno, but all the threads about contractors who cut corners have me worried. Our contractor will be pulling permits for everything. How much protection does this offer from shoddy work?