Avoid Home Improvement Rip-offs

[missmanors]

We've been talking a lot about home improvements, and how to deal with contractors. I think this may help those of you who are thinking of having some work done by contractors.

Most contractors are reputable, of course, but there are some people out there posing as reputable contractors, who are only out to take a homeowners money without doing the job at all, or doing half the job and running, or doing a bad job. Here are some tips to avoid those irreputable contractors, from Consumer Protection Section of the Ohio Attorney General's Office. Be sure to do a bit of research to see your rights in your own particular state.

1. Always sign a written contract before you make a home improvement transaction. Be certain to verify your full name and also the name, address and telephone number of the contractor. Get a complete description of all work to be done, also the materials that will be used and the specific terms for the payment of materials and the labor. Also include a provision which requres approval for any changes that need to be made during the progress of the improvement. Also get a clear statement which explains the contractor's guarantee of the installation and also all of the contractor's oral and written promises.

Make sure that your contract includes the dates that the work is to be begun and finished. Make sure that the contracts does not require you to pay liquidated damages, attorney's fees or court costs in case of a dispute or cancellation. The contract also should require the contractor to obtain all the necessary permits and any inspections that are required. Avoid any contract which requires a large down payment or payment in full before the project is completed.

Finally, include your signature along with the contractor's signature. Before final payment is made, ask for copies of the manufacturer's written warranty on the items used - such as siding, windows, roofing materials and heating and cooling equipment. After the project has been completed, request an itemized receipt for the work performed. Also keep any old parts, such as furnace parts, in case these are needed to prove in the future that a particular item did not need to be replaced.

Before signing a home improvement contract, be sure any financing you may need is pre-approved, also get references from the contractor and check those references. Have the contractor show proof of licenses, insurance and bonding. Always check with your local Better Business Burear and the Attorney General's Office in your state to see if any complaints are on file against the company. It's also a good idea to have interviewed and received at least 3 written estimates.

If a contractor uses "scare tactics" beware. If you are told by the contractor that your furnace is in danger of blowing up or your roof is going to collapse, etc., get a second opinion. Check with either another company or with your local city inspector before you authorize any repairs.

Watch out for bait-and-switch tactics which are against the law. If a contractor attempts to bait you with advertisements for cheaply priced repairs or matericals and then switches you to a more expensive job later, you should report that contractor. (Remember, if it's seems too good to be true, then it probably is.)

Be leary of a contractor who says, "We're going to use your home as a model, so we're giving you a special discount." This pitch is frequently used by those selling aluminum siding, swimming pools, storm windows and fencing. Check them out thoroughly before agreeing to their sales pitch.

Don't pay a contractor a large sum of money in advance, a reasonable down payment may be required, but reserve the final payment until the job is completed. Always get a receipt for any partial payments or deposits which are made. Watch out for a contractor who promises you a discount or a commission if you supply the names of other potential buyers. A "referral sale" is illegal in the state of Ohio (check on this for your state). Don't fall for a contractor's line that he is working in your neighborhood and has extra materials and time to offer you a deal. This rarely turns out to be a bargain.

[flippinout]

These are some excellent guidelines for people to go by when hiring a contractor.

I think the most important one was only making a partial payment until the work is completed. Too many times, people have paid up front only to have the contractor and his crew never return.