If you are thinking about making improvements to your
home, selecting a contractor is the first and most
important step in the process. The Federal Trade
Commission offers the following tips and checklist to
help you along.
- Deal only
with licensed contractors. Make sure that any
contractor you're considering has a current
license; only licensed
contractors and salespeople can require and
accept any payments before the job is completed.
- Don't
assume that all contractors who advertise in the
"home improvement" section of the
Yellow Pages have a valid license or that
they're reputable. Check out licensed
contractors with the Better Business Bureau.
You'll find out if there are any unresolved
consumer complaints on file.
- Ask friends,
relatives and co-workers for recommendations. Ask
contractors if there's a charge for an
estimate before allowing them in your home. Get
written estimates from at least three firms. Ask
for explanations for price variations. Don't
automatically choose the lowest bidder.
- Be skeptical
of contractors who come to your door unsolicited
or offer reduced prices because they've just
completed work nearby and have materials left
over.
- Beware of
contractors who ask you to pay for the entire job
up front. Your down payment should not be more
than one-third of the total price. And remember,
only licensed contractors and salespeople can
require and accept any payments before the job is
completed. Pay only by check or credit card, not
cash.
- Be cautious
about using your home as security for a home
improvement loan. If you fail to repay the loan
as agreed, you could lose your home.
- Have a
knowledgeable friend, relative or your attorney
review the contract before you sign. If you get a
loan to pay for the work, consider having these
documents reviewed as well.
- Be aware
that you have cancellation rights. Under Federal
and District law, you have three business days to
cancel the deal if you sign the contract in your
home or at a location that is not the
seller's permanent place of business. The
salesperson must give you two copies of a
cancellation form (one to keep and one to send
back) and a copy of your contract or receipt. The
contract or receipt must be dated, show the name
and address of the seller, and explain your right
to cancel.
Check Out Your Contractor
Ask
the contractor for the following information. Use it to
check out the contractor with appropriate authorities and
previous customers. If the contractor is reluctant to
give you this information, consider doing business with
another company.
- An unsigned
copy of the contract
- A copy of the
estimate
- Contractor's
name
- Street address
(no P.O. Box)
- Telephone
Number
- License
Number
- Name under
which license is filed
- Number of years
contractor has had a license
- Names,
addresses and telephone numbers of previous
customers. Ask them about their experiences with
the company. If possible, visit a completed job.
For
more information, contact the FTC at: Consumer Response
Center, Federal Trade Commission, Washington, D.C. 20580,
or call 202-326-2222; TDD: 202-326-2502.
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