Skip standard sub page navigations FEMA.gov - Federal Emergency Management Agency
Image of an American Flag
Disaster tab Emergency tab Education tab Media Regions
  Home » Office of Inspector General » Avoid Contractor Rip-Offs
» Search Tips
Office of Inspector General
IG Vision Statement
IG Organizational Chart
Contact IG Officials
Semiannual Reports
Statistical Reports
Consolidated Audit Guide
Management Reports
Fraud Hotline
Fraud Alert
Employment Opportunities
FEMA's Delivery of Individual Assistance Programs: New York - September 11, 2001
IG  - Office of Inspector General

Avoid Contractor Rip-Offs

Be extremely cautious about contractors you hire to repair or rebuild damaged property. Unfortunately, a few dishonest contractors take advantage of people caught in the wake of a disaster. Also, in cases where federal or state aid may be available, the agency involved may require that an assessment of the damaged property be completed before any repairs are made.

  • Try not to rush into starting repair work.


  • Get estimates from more than one licensed, bonded, reputable contractor. Don't grab the first person that comes along. Call your local Better Business Bureau to check out a contractor.

  • Find out what neighbors are paying for similar work.

  • Be wary of contractors claiming "I can get to you right away and do it cheap."

  • Write down the license plate number and driver's license number of someone offering services.

  • Ask to see proof of the necessary contractor's licenses and building permits.

  • Make certain the contractor shows you a certificate of insurance covering liability and workers' compensation - otherwise, you could be sued if a worker is injured while working on your property.

  • Get a contract in writing. It should cover what is to be done, when work starts, cost and payment schedules, and the quality of materials to be used.

  • Make sure repairs are done according to local building codes.

  • Be careful that your signature on a contractor's bid is not an authorization to begin work.

  • Don't pay more that 20% down for the contractor to begin work. Then pay periodically, according to the progress of the work.

  • If the contractor insists on payment for materials up front, then go with him to buy them or pay the supplier yourself.

  • Have the contractor sign a release of lien when the work is done and paid for; this will prevent the contractor from making legal claims against your property in the event of a dispute later.

  • Don't make final payment until the job is finished - and you are satisfied with it.

  • Make sure all work that requires city or county inspection is officially approved in writing before making final payment to the contractor. You may even want a structural engineer to double-check major repairs before you make a final payment.

  • Don't sign over an insurance settlement check to the contractor.

If you have been a victim of contractor fraud, contact your State Attorney General's Office of Consumer Protection and your local police department.

To report fraud, waste, and abuse within a FEMA program call the OIG Hotline at 1-800-323-8603.


Last Updated: Friday, 22-Oct-2004 21:22:00 EDT
footer graphic
Español | Privacy Policy | Accessibility | Site Help | Site Index | Contact Us | FEMA Home
footer graphic
FEMA 500 C Street, SW Washington, D.C. 20472 Phone: (202) 566-1600