With that said, here's the reality of that particular scenario. Painters do put water in the paint, but not for reasons you would think. Some materials need to have their viscosity manipulated in order to slow drying time, allowing gravity to 'smooth' out the product for a better finish. It also prevents 'drags' and 'sausages'. I personally try not to do it too often, but from time to time I have to. I want my client to have a proper finish.
Some proposals simply say to paint the walls and ceiling and never specify the number of coats to be applied. If the colors are similar enough, it's possible to get away with one coat of paint and not discount your pricing. No matter how hard you try, tiny, pin-sized air holes will pop exposing the original walls. This may not bother you if you can't notice it, but principally speaking you should have paid your painter less for the work.
These are some fantastic questions to ask and I particularly like the one that is concerned about safety for the painters. After all, if you have a large home and you’re hiring them to paint the exterior of that home then they’ll likely be on scaffolding. Because of that, you need to make sure that the contractor not only provides appropriate safety training, but has the correct liability insurance as well.