|
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.
|
|