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How to Avoid a Bad Contractor
WARNING
SIGNS | VERIFY
CREDIBILITY |
REVIEW THE
CONTRACT
Each year, thousands of consumers
get duped by contractors who promise the world and fail to deliver.
Common complaints against contractors include poor quality work, overpriced
repairs, contractors who do not finish jobs, and unregistered contractors
who try to sell their services. Some scam artists actually pose as
contractors and then disappear after they have collected down payments.
Recognizing the
Warning Signs
Untrustworthy contractors, or people pretending to be licensed
contractors, usually give themselves away through either their mannerisms,
what they say, or how they appear. If at any time in dealing with a
contractor you feel uncomfortable or that the person to whom you are
speaking cannot be trusted, it's wise to trust your gut instinct. Be
aware of the following warning signs:
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Work crews pretending to be
contractors often seek work by going door-to-door with excess materials left
over from other jobs. They might have gravel or roofing supplies and
offer discounted services. Real contractors do not obtain business
from door-to-door sales.
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Never trust a contractor who can
only be reached through voice mail. All legitimate contractors will
have both cellular phones and office numbers. Although they may not
always answer, it's wise to avoid someone who never answers.
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Avoid any contractor who drives an
unmarked van or any vehicle with out-of-state license plates.
Contractors should live in the states in which they build. Fraudulent
contractors sometimes scam people by skipping town after they have collected down
payments. Of course, someone who lives in Northern Jersey may find
work in New York, but make sure any contractor is licensed in your state
before you hire him.
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Legitimate contractors will not
press you to make an immediate decision. People who have been in
business for a long time understand that customers need time to consider
their options before making major buying decisions. Established contractors have confidence that they will find business either
with your or from someone else, so they would not use any form of
psychological intimidation to get a yes or no out of you.
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No contractor worth anything will
offer a discount to you for finding him other customers. In fact, by
giving away contact information, you may actually be setting up your friends
and families for contractor scams. The best construction companies do
not need your help to obtain new business, so they wouldn't give any
discounts for referrals. A respected contractor might wait until a
project has been completed before asking if you would be a reference.
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If a contractor's employees or
suppliers tell you they have had difficulty getting paid, the contractor, in
all likelihood, is untrustworthy and irresponsible. If he can't pay
his employees or vendors on time, there's no reason to believe he will
fulfill his promises to you.
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Be wary of deals that appear too
good to be true. Anyone who tells you that you have won a prize that
can only be redeemed if you pay for home improvements should be reported to
a consumer protection agency. Legitimate contractors do not offer free
prizes, nor do they ever work in accordance with companies that do.
Contractors who offer free inspections are sketchy at best.
They use the free inspection, which probably has no legitimacy in the eyes
of the state, as a foot in the door to make a sale. Furthermore, if
someone's price sounds too cheap, it probably is. BACK
TO TOP
Verifying a
Contractor's Credibility
On matters pertaining to foreign policy, Ronald Reagan had a
great philosophy: Trust, but verify. This is valuable wisdom for
all areas of business, especially when dealing with contractors. Even
after watching out for the warning signs, you should still verify a
contractor's legitimacy through the following steps, even if the person is a
friend or family member.
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If you live in a state that has a
contractor licensing board, call to verify that the person you plan to hire
is in fact registered. Never take someone's word for it.
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In order to protect yourself, make
sure the contractor has general liability insurance and worker's
compensation. First, you want the peace of mind in knowing you
will not be held liable for any injuries that occur on your property.
Moreover, a contractor who does not carry insurance is probably not the
greatest business person in the world. Why would anyone place
themselves at such risk by not insuring his construction workers?
There is no answer to this question other than the fact that he has no
concept of risk management.
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Ask the contractor for business
references and check up on those references with phone calls. If
possible, visit a few sites and inspect the contractor's work. Verify
the contractor's credentials, such as education, special training, and
experience.
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Call your state Attorney General's
office to check if there have been any customer complaints filed against the
contractor. A contractor may be fully licensed, have plenty of
references, and run a completely legitimate business, but that doesn't mean
he hasn't made too many mistakes during his career. For every
satisfied customer he's used as a reference, there may be three clients who
have been displeased with his work. BACK
TO TOP
Protecting
Yourself in a Home Improvement Contract
A written contract should hold contractors accountable for the
promises they make during initial conversations. This should include a
timeline, the costs associated with a project, and exactly how much money
the completed project will cost. Because construction services for
remodeling a kitchen can be one of the most expensive purchases you ever
make, it's essential to thoroughly read and understand a contract before
signing it. In order to protect yourself, take the following
precautions:
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Obtain all cost estimates in
writing. The estimates should include a complete description of all
work that needs to be done, all the materials that will be used, and cost
itemizations. Having an itemized list makes it easier to assess
whether or not the charges are fair.
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This may sound like a no-brainer,
but make sure you obtain a copy of a written contract. Many states
have laws mandating that contracts be written for all major contracts.
Keep a copy for yourself. Should a contractor breach the contract, you
will have the signed document to hold him accountable for his promises.
If, for any reason, a contractor asks you to resign something, make sure the
new document matches what was written in the original.
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Read and understand a contract
before putting your signature on it. If the language confuses you, or
if there are points you do not understand, reread it until you know what it
is saying. If you want something reworded, ask for it. While
reading a contract, look for the things you and the contractor had
previously discussed. If he stands by his word, he'll have no problem
adding something he initially left out.
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Hire a lawyer to read any contract
that includes financing. The lawyer fees are well worth the peace of
mind in knowing that the contract you are about to enter is fair and
forthright.
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Never make payments unless the
contractors have fulfilled their obligations. Many contractors will
require an upfront deposit. However, before writing out that check or
giving credit card information, find out where the money will be held, how
to get a refund, and what the deposit is used for. Never pay
the full price up front. When you do this, you lose all leverage with
the contractor. Continually inspect the work as it is completed, and
point out problems to the contractor. You don't want to find an
imperfection or discover issues after the final payment has been made.
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Finally, it should be written in the
contract that all completed work will conform with city, county, and state
codes. If this is not done, it can cost thousands of dollars later on.
BACK TO TOP
It is not our intent to smear
contractors. There are plenty of honest, hard-working, and competent
people out there. We just want you to find one of the good guys rather
than someone who is either untrustworthy or incapable of completing the job.
As long as you keep your eyes open for the bad guys, you'll have no problem
finding someone who can get the job done.
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