TIPS ON HOW TO AVOID
CONSTRUCTION & HOME IMPROVEMENTS SCAMS
Most state laws requires a person performing $1000.00 of work on a home be licensed to perform the work.
If a licensed or unlicensed contractor performs work on your home and does not have the required insurance the home owner by law maybe assuming financial responsibility for possible losses caused by that unlicensed contractor to include losses to their home, the builders property, neighboring property, and injuries suffered by the unlicensed contractor, their employees, and anyone who gets hurt as a result of the work being performed by the uninsured contractor.
Consumer Guide for Older Citizen
Older citizens are particularly vulnerable to construction scams because so many own their own homes but cannot do their own repairs. Your home is likely to be your most valuable financial asset – that’s why you must be extra careful when you hire someone to work on it. Require a “Certification of Insurance” from the contractor you plan to hire.
Tips for hiring a Contractor
Deal with a licensed contractor who meets state requirements for expertise and performance. By hiring a licensed contractor, you make yourself eligible for monetary relief from the Contractors Transaction Recovery Fund in case of improper and dishonest conduct. You can check a contractor’s license status and any disciplinary actions taken in VA by calling the Contractors Board at (804)-367-8511 or in MD to see who is licensed go to http://www.dllr.state.md.us/pq/ . Ask friends and neighbors for contractor referrals. An advertisement on the Yellow Pages or on TV isn’t necessarily a good indication of the quality of a contractor’s work.
Tip-Offs to Potential Rip-Offs
Not all contractors operate within the law. Unlicensed contractors often target older citizens – and that’s a crime. Here are some warning signs. Watch out for scams or an unlicensed contractor who:
- Solicits door to door
- You can not verify the name, address, phone number, or credentials of the contractor
- Just happens to have materials left over form a previous job
- Pressures you into making an immediate decision
- Asks you to pay for the entire job up front
- Only accepts cash payments
- Asks you to obtain required building permits
If you suspect a scam…….in VA Call the DPOR Hotline at 804-367-2178 in MD file http://www.dllr.state.md.us/forms/mhiccomplaint.doc form but don’t hand over any money till you are sure.
10 TIPS TO MAKE SURE YOUR CONTRACTOR MEASURES UP.
1- Hire only licensed and insured contractors.
2- Check contractors license status at www.dpor.virginia.gov or 804-367-8511 in VA and https://www.dllr.state.md.us/cgi-bin/ElectronicLicensing/OP_search/OP_search.cgi?calling_app=HIC::HIC_qselect in MD
3- Contact 3 references and check past work
4- Get at least 3 written bids. Don’t automatically choose the lowest bidder – ask for explanations on price variations among proposals
5- Insist on a detailed contract. Including agreed-upon start and finish dates. Licensed contractors are required by law to provide a contract for residential work. Don’t rely on verbal agreements- get all guarantees, warranties, and promises in writing.
6- Do not let payments get ahead of the work
7- Don’t pay 100% of the bill until the work is 100% complete. Try to limit your down payment – a reputable contractor should be able to front the costs of supplies without a large sum of money from you. A deposit of one – third (30%) of the total cost is a good rule of thumb. Try to make payments during the project contingent upon completion of certain tasks – that way, if the contractor is behind schedule, your payments are delayed…
8- Do not pay cash and keep records of the payments
9- Keep a job file of all the papers relating to the job
10- Keep a job file
of all papers relating to the project