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The following is a list of some of the typical warning signs homeowners need to be wary of as
cited by various government agencies and other consumer information groups.
You cannot verify name, address, telephone number or credentials of the contractor
No references are furnished.
You are unable to verify the license or insurance information of the contractor
Information you receive from the contractor is out of date or no longer valid.
The salesperson or contractor tries to pressure you into signing the contract.
The salesperson or contractor says your home will be used for advertising purposes so you will
be given a "discount" or "special low rate". The salesperson or contractor tells you the "special
price" will only be available if you sign the contract today.
The contractor solicits door-to-door. The contractor just happens to have materials left over
from a previous job.
Offers discounts for finding other customers.
Offers you exceptionally long guarantees.
You are asked to pay for the entire job in advance.
Accepts cash payments only.
Asks you to get the required building permits.
Does not list a business number in the local telephone directory.
Works out of his truck – No address given.
Contractor does not offer, inform or extend notice of your right to cancel the contract within
three days. Notification in writing of your "Right of Rescission" is required by law. This grace
period allows you to change your mind and declare the contract null and void without penalty if
the agreement was solicited at some place other than the contractors' place of business or
appropriate trade premises-in your home for instance.
Suggests you borrow money from a lender the contractor knows. If you're not careful, you
could loose your home through a home improvement loan scam.
You are asked to sign a completion certificate for the job by appeal, threat, trick or before the
job is properly completed.
If a deal sounds to good to be true, well it probably is. You should be looking for quality in
construction by meeting or exceeding industry standards and ethical behavior of the contractor.
You accomplish this by doing a thorough background check on the contractor.
The contractor starts talking about "problems" he has had with certain customers-pass on this
one because you'll likely be his next problem.
The salesperson tells you that you can't speak to or meet the general contractor yet-you must
deal exclusively with him/her and only AFTER you've signed the contract will you get to meet the
contractor.
Be very cautious when dealing with a contractor who does heavy advertising in local
newspapers, radio spots on am talk shows, Sunday inserts etc.
The really good contractors develop word of mouth referrals from customers and have plenty of
work to keep them busy the next several months. They are worth the wait and besides, this gives
you the time to do your research on products and materials for your project.
