If you plan to use the services
of a dealer or contractor, take care to choose one with a
reputation for honesty and good workmanship. There are several
ways to check on a contractor:
Consult
your local Chamber of Commerce, the Better Business
Bureau, state attorney general, or local consumer
protection agency.
Talk with people
for whom he has done work.
Ask to see
samples of his work. Pictures are a help; better yet
is to go and get an actual tour of a home that he's
worked on.
Ask your lender
about him, if you plan to finance the project with
a loan.
Check his place of business to see
that he is not a fly-by-night operator.
Find out, if you can, how he rates
with known building-product distributors and wholesale
suppliers.
Ask friends and relatives for names
of firms that they could recommend.
Compare Contractor Offers
Before deciding on a contractor, get bids from two or three
firms. Make sure that each bid is based on the same specifications
and the same grade of materials. If these bids vary widely,
find out why.
Many contractors offer package plans that cover the whole
transaction. Under such a plan the contractor provides all
materials used, takes care of all work involved, and arranges
for your loan.
Your contractor can make the loan application for you, but
you are the one who must repay the loan, so you should see
that the work is done correctly.
Understand What You Sign
The contract that both you and the contractor sign should
state clearly the type and extent of improvements to be made
and the materials to be used. Before you sign, get the contractor
to spell out for you in exact terms:
How
much the entire job will cost you.
How much interest
you will pay on the loan.
How much you
will pay in service charges.
How many payments
you must make to pay off the loan, and how much each
of these payments will be.
After the entire job is finished in
the manner set forth in your contract, you sign a completion
certificate. By signing this paper you certify that you approve
of the work and materials, and you authorize the lender to
pay the contractor the money you borrowed.
Beware of Fraud
Most dealers and contractors conscientiously try to give their
customers service equivalent to the full value of their money.
Unfortunately, home improvement rackets do exist. Here are
a few common sense rules to follow:
Never
sign a contract with anyone who makes fantastic promises.
Reputable dealers are not running giveaway businesses.
Never consolidate
existing loans through a home improvement contractor.
Never sign
a completion certificate until all the work called
for in the contract has been completed to your satisfaction.
Be careful not to sign a completion certificate along
with a sales order.
Proceed cautiously
when the lender or contractor demands a lien on your
property. Most lenders do not require a lien if the
loan amount is less than $7,500.
Again, most repairpersons are honest professionals who appreciate
the value of a happy customer. They do good work at a fair
price. When they make mistakes, it's often just that... a
mistake. When this happens, an honest repairperson should
guarantee his or her work and correct it.
The best way to avoid getting mired in unpleasant dealings
with an unscrupulous contractor is to see the scam coming
and to avoid getting involved in the first place. To that
end we've laid out ten contractor-scam warning signs.
