|
Home repairs can cost
thousands of dollars and are the subject of frequent complaints. When selecting
a contractor:
• Get
recommendations and references. Talk to friends, family and other people for
whom the contractor has done similar work.
• Get at least
three written estimates from contractors who have come to your home to evaluate
what needs to be done. Be sure the estimates are based on the same work so that
you can make meaningful comparisons.
• Make sure the
contractor meets licensing and registration requirements with your local or
state consumer agency. Some states require licensees to pass tests for
competency and scrutinize licensees for financial solvency. Some states also
have a fund to cover some financial losses that result from problems with
licensed contractors.
• Check to see if
state or local laws limit the amount by which the final bill can exceed the
estimate, unless you have approved the increase.
• Check contractor
complaint records with the Better Business Bureau.
• Get the names of
suppliers and ask if the contractor makes timely payments.
• Contact your
local building inspection department to check for permit and inspection
requirements. Be wary if the contractor asks you to get the permit. It could
mean the firm is not licensed.
• Be sure your
contractor has the required personal liability, property damage and
worker’s compensation insurance for his/her workers and subcontractors.
Also check with your insurance company to find out if you are covered for any
injury or damage that might occur.
• Insist on a
complete written contract. Know exactly what work will be done, the quality of
materials that will be used, warranties, timetables, the names of any
subcontractors, the total price of the job, and the schedule of
payments.
• Try to limit
your down payment. State law may specify that only a certain percentage of the
total cost may be made as a down payment.
• Understand your
payment options. Compare the cost of getting your own loan versus contractor
financing.
• Don’t make
final payment or sign an affidavit of final release until you are satisfied
with the work and know that subcontractors and suppliers have been paid. State
lien laws may allow unpaid subcontractors and/or unpaid suppliers to attach
your home.
• Pay by credit
card when you can. Under federal and state law, in most cases, you have the
right to withhold payment to the credit card company until problems are
corrected See Resolving Credit Problems.
• Be especially
cautious if the contractor:
• comes
door-to-door or seeks you out;
• just happens to
have material left over from a recent job;
• tells you your
job will be a “demonstration”;
• offers you
discounts for finding other customers;
• quotes a price
that’s out of line with other estimates;
• pressures you
for an immediate decision;
• offers
exceptionally long guarantees;
• can only be
reached by leaving messages with an answering service;
• drives an
unmarked van or has out-of-state plates on his/her vehicles; or
• asks you to pay
for the entire job up front.
With most home
improvements, federal law gives you three business days to cancel without
penalty. Of course you would be liable for any benefit already received. State
laws may also provide some protection. See Your Rights: 3-Day Cooling-Off Rule.
If you finance home improvements with a home equity loan and don’t make
your payments, you could lose your home. See Home Equity Loans.
|
