Electrical – Where is the best place to put a light on basement stairs

First, handle drainage. If you want to install a sump pump, perimeter drain, or water proof the walls, now is the time to do that. You should also install any plumbing drain lines at this point.

Next, framing. Concrete transmits moisture, so use pressure treated, and a styrofoam underlay that would normally go under the sill plate, to keep the walls dry. With pressure treated wood, you need galvanized nails to avoid a chemical reaction that would eat a normal nail. Make sure the framing is designed for the drywall (16" OC studs, nailing edge in the corners and around the ceiling perimeter). And make sure the walls are positioned/sized for any plumbing or other utility lines. For exterior walls, the thicker the wall (2x6 instead of 2x4) the more insulation you can include.

At this point, utilities go in, including plumbing, electrical, hvac, and communications. I'm a strong believer in conduit for running communications lines (like ethernet, catv, and phone) so that you can upgrade those without opening the walls or running wires all over the floor. Note that with more outlets, you will need more circuits, and copper isn't cheap.

Insulation is done after all the utilities are finished. If you have water proofed the walls, then I don't have much against the standard fiberglass insulation. Actually, I like fiberglass because it's easy to work with as a DIYer, relatively cheap, and replacing a piece or temporarily moving it (e.g. in the attic) is simple. However, with moisture concerns, or if you live in a northern climate with harsh winters, then I'd favor the spray foam. The spray foam has the downside of being difficult (impossible?) to remove, but it functions as a vapor barrier and leaves no cracks that air can get around.

After this, you have drywall, paint, doors and trim, and touch-up paint. I like to paint the walls and trim separately so there's less work on edging.

As for the flooring, you would usually do this before or after the trim. With hardwood, you would often do the flooring first, and then the trim goes up tight against it. With carpeting, you would install your trim 1/2" above the floor and the carpet installers would install the carpet right under that.

I was not able to find any sections in NEC that prohibit switches from being installed in closets, so until somebody can point to a specific section I'd say it's not a problem. There may be adaptations to the code in your local area, so you'll have to check with the local Electrical Inspector to be absolutely sure.

The NEC does, however, have a section on luminaires in clothes closets.

NEC 2011

410.16 Luminaires in Clothes Closets.

(A) Luminaire Types Permitted. Listed luminaires of the following types shall be permitted to be installed in a closet:

(1) A surface-mounted or recessed incandescent luminaire with a completely enclosed lamp

(2) A surface-mounted or recessed fluorescent luminaire

(3) Surface-mounted fluorescent or LED luminaires identified as suitable for installation within the storage area

(B) Luminaire Types Not Permitted. Incandescent luminaires with open or partially enclosed lamps and pendant luminaires or lampholders shall not be permitted.

(C) Location. The minimum clearance between luminaires installed in clothes closets and the nearest point of a storage space shall be as follows:

(1) 300 mm (12 in.) for surface-mounted incandescent or LED luminaires with a completely enclosed light source installed on the wall above the door or on the ceiling

(2) 150 mm (6 in.) for surface-mounted fluorescent luminaires installed on the wall above the door or on the ceiling

(3) 150 mm (6 in.) for recessed incandescent or LED luminaires with a completely enclosed light source installed in the wall or the ceiling

(4) 150 mm (6 in.) for recessed fluorescent luminaires installed in the wall or the ceiling

(5) Surface-mounted fluorescent or LED luminaires shall be permitted to be installed within the storage space where identified for this use.