How to Avoid Contractor Rip-Offs

Not all contractors operate within the law. Here are some tip-offs to potential rip-offs.

solicits door-to-door;
offers you discounts for finding other customers;
just happens to have materials left over from a previous job;
only accepts cash payments;
asks you to get the required building permits;
does not list a business number in the local telephone directory;
tells you your job will be a "demonstration;"
pressures you for an immediate decision;
offers exceptionally long guarantees;
asks you to pay for the entire job up-front;
suggests that you borrow money from a lender the contractor knows. If you're not careful, you could lose your home through a home improvement loan scam.

Checking References

Talk with some of the remodeler's former customers. They can help you decide if a particular contractor is right for you.

Can I visit your home to see the completed job?
Were you satisfied with the project? Was it completed on time?
Did the contractor keep you informed about the status of the project, and any problems along the way?
Were there unexpected costs? If so, what were they?
Did workers show up on time? Did they clean up after finishing the job?
Would you recommend the contractor?
Would you use the contractor again?

Where to Complain

If you have a problem with your home improvement project, first try to resolve it with the contractor. Many disputes can be resolved at this level. Follow any phone conversations with a letter you send by certified mail. Request a return receipt. That's your proof that the company received your letter. Keep a copy for your files.

If you can't get satisfaction, consider contacting the following organizations for further information and help:

State and local consumer protection offices.
Your state or local Builders Association and/or Remodelors Council.
Your local Better Business Bureau.
Action line and consumer reporters. Check with your local newspaper, TV, and radio stations for contacts.
Local dispute resolution programs.