Home Repairs
Tips for Avoiding Home Repair Scams
Be skeptical when:
A contractor shows up at your front door saying that your roof (or another area on your house that is hard to check) needs repair.
A contractor says he just finished work on your neighbor’s house and has just enough materials to do repair work on yours. He might say he can give you a better bargain if you let him do the work today since he has the supplies now.
The contractor pressures you to accept an offer.
A contractor offers you a “special deal” in exchange for your credit card number, or promises you a loan in exchange for a fee in advance.
Finding a contractor
Do research. Know how much you can afford and what you want done.
Contact the Attorney General’s Consumer Protection Division and the Better Business Bureau for complaint information on contractors you are considering.
If you’re a member of Angie’s List or a similar local service in your community, check their reviews on the contractor. If you’re not a member, consider joining.
Compare bids and services. Be skeptical if the bid is too low. Cheaper is not necessarily better. A contractor with a low price may be inexperienced and unable to finish the work for the amount bid.
Is the contractor licensed, bonded and insured? Licensing requirements vary from community to community.
Get references from the contractor; talk to some of his customers and visit one of his recently completed projects to evaluate the quality of work.
Before signing a contract
Get bids in writing. Some states requires home improvement contracts if the costs exceed a certain dollar amount (e.g. $150 in Indiana). Before signing the contract, make certain it includes:
- The price of the job
- Payment schedule
- A detailed description of the work and materials (including colors, brand names and patterns)
- Estimated start and completion dates
- The contractor’s name and address
- A name and telephone number of the person to contact if problems arise
- The contractor’s signature
After signing a contract
Contact your local building department to see if a permit is needed. A contractor should not start work until the permit is issued.
Never pay for the entire project before the work begins. Don’t pay more than 1/3 of the total cost as a down payment. Remaining payments should be tied to completion of specified amounts of work.
Don’t make the final payment to the contractor until you know that all subcontractors and/or suppliers have been paid. Get written proof of payment. Subcontractors and suppliers may file a mechanics lien against your home if they haven’t been paid.
Get a copy of the warranty. If a contractor guarantees labor and/or materials, those warranties should be in writing.
Keep all records related to your project. This includes the contract, change orders, warranties, and correspondence. These records are important, particularly if you have a problem with your project.
