As Spring and Summer roll around, you notice a lot of discussion in the media about home repair scams. It's as old as the hills - warm weather brings out the crooks who want to take advantage of the unsuspecting... and the lazy.You can protect yourself from an unscrupulous contractor or even an outright scam artist by doing your due diligence. Or, in other words -- doing your homework.
Scam Artist?
Where do the scam pros lurk? At your front door, for starters. Don't ever hire anyone soliciting repair or renovation services door-to-door with a "special deal" or someone who has some "leftover materials from another job." Usually, you should leery if an unknown contractor or company calls you out of the blue. Treat an unsolicited call from a remodeling or repair company the same as you would any telemarketer. Hang up.
Can I Trust the Yellow Pages?
Just because a company is in the phone book does not mean they represent quality nor has the company been screened by the directory. They simply paid for an ad.
Beware any contractor who only gives you a cell phone number and has no business address. It doesn't mean you should avoid them completely, but it means that you may not be dealing with a qualified or established company. Do a little extra homework and thoroughly check their references. Go to a current or recent job site to physically review their handiwork.
Does a Contractor License Matter?
Yes and no. Some people prefer to work with a local contractor who will simply give them the best price - they don't care of that repair or remodeling company has a license or not. However, a license is a great indicator of quality, history, experience, and stability for any contractor.
If you want to find out if your potential contractor is licensed, ask for their license information and check this online resource!
Also, find out if your state even requires a license. Some do not. Some only require a license for certain projects or projects over a specified dollar amount.
Should I Check the Better Business Bureau?Absolutely! The construction industry provides the BBB with the most complaints nationwide. They handle, monitor, and help resolve customer grievances against companies. Check to see if your potential contractor has current problems or a history of complaints. They hold complaints on record for 36 months.
What About "Pre-Screened Contractors"?
Ha! There are several online companies out there that promise that all their companies and contractors have been pre-screened. Or, there are "excellent" reviews and ratings on their sites. ConstructionDeal.com doesn't do anything quite so foolish.
Why? Well, read this story to get an idea. It's nearly impossible to keep track of all the thousands and thousands of contractors in our network. They may sign up with no BBB complaints, all their insurance and bond payments made, with no legal actions against them, but... all of these things could easily change the next month, week, or even day!
Any company that promises their contractors are prescreened are providing a false sense of security to homeowners! We want you to ALWAYS do your homework on ANY and EVERY service professional who may step foot on your property. The more you know, the less chance you have of getting burned.
How Much Should I Pay Up Front?
Ah, here's where many homeowners get screwed. The unscrupulous contractor and especially the scam artist will ask for most (if not ALL) the money up front. But, they're getting smarter about this. They know most homeowners can't or won't pay it all up front. So, they're trying to get as much as possible and they're running away with it.
The BBB says you should never pay more than one third up front. I'm a little stingier and I think you should be, too. Try to negotiate a serious pay plan in your contract. Tell the contractor or company you will not pay more than 15% up front - but will give another ten percent on the first day of the job... if they show up. Then, if work progresses, you'll pay more each day/week/month. And then pay the final amount after work is complete and you are happy.
There will be compromises there. But I would rather see you not get your project completed than to be ripped off by a scam artist. So don't be afraid to negotiate to protect yourself.
What Else Can I Do?
Again, if you can - check REFERENCES of every contractor or company who will do work for you. And if they cannot provide you with more than one or any reference more recent than 2 months ago, you should be concerned. Quality companies should be proud of their work and should have plenty of satisfied clients. If they do not - what do you think your odds are that you'll be happy with your project?
If you do get burned without doing any of your own research, you've got no one to blame but yourself. If something does go wrong, try to work with the BBB to get help. They can usually help resolve almost 85% of all the construction, remodeling, and repair cases they mediate. If not, the courts might be your only alternative.
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If you need to find a home repair expert, post your project with ConstructionDeal.com. We'll match you to as many contractors as you wish -- and don't forget to check them all out! It's a fast, free service for all homeowners and business owners with remodeling, building, or repair jobs.
