Even the more scrupulous building contractors may be tempted to manipulate the details in hopes of a sweeter deal. That’s the word out this week from Josh Garskof of Yahoo Finance. In his column, he quotes the enforcement head of the California Contractors State License Board, who tells consumers to keep transactions with their contractors on the straight and narrow.
The Yahoo article suggests that in the current struggling economy, some contractors try clever “fast and loose” tactics to get you to pay “boom-time” rates.
Considering that many a contractor has been forced to drop prices as much as 40 percent to compete for fewer home improvement jobs, don’t give them enough rope to tie you to higher rates. Instead, Garskof writes, you should do all you can to resist contractors assertions that they don’t have room to bargain. Moreover, don’t fall for any ploy to have you pay money upfront for materials or to avoid getting permits to allow the contractor to work under the table.
Get Competitive Estimates
Remember, you should never have to pay for an estimate. And by getting more estimates and letting contractors know you’re looking for the best deal, you can block their temptation to give you a high price. When interviewing contractors, ask for proof of insurance and bonding. Demand that they show you their state licenses and registration. And ask for references.
Before hiring a contractor, consider doing your homework and contact the Better Business Bureau to check for liens, judgments, and bankruptcies.
Be Wary of Scams
This is not to say that most contractors are shady. But it is to say that many homeowners are gullible. Scambusters suggests that you stay on the lookout for contractors who try to scare you by indicating that your home is in great jeopardy unless certain things are fixed immediately. If you’re told that, be sure to get several more, independent inspections and bids.
Times may be rough for contractors–and homeowners, too–but you should be wary of door-to-door calls from builders who are hustling jobs. Insist on written estimates and, if you decide to do business, insist on a formal, written contract that stipulates all costs and terms.
Never, says Scambusters, agree to pay in cash for anything and never agree to pay “up-front” for work. Walk away from a contractor who says he has leftover materials from another job to use on your place. That may mean that someone else has been ripped off.
Be prepared!
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If your potential contractor has a bad rep at the lumber yard because of unpaid bills, then drop him like a bad habit! Once shady contractors start robbing Peter to pay Paul then the shit is about to hit the fan!
You are exactly right. Careful selection of an experienced contractor can help avoid scams and lead to a much more positive experience for the homeowner. Here are some more tips to share with your readers. Get recommendations from your friends and other building professionals. You can also search for complaints with the Better Business Bureau. Consider interviewing a couple different contractors to ensure that you find one that you can not only trust, but one that is most suitable for your project as well. Hire a licensed contractor. Licensed contractors know building codes and are legally responsible for their work, whereas unlicensed contractors leave plenty of room for complications.
I vetted my Gen Contractor via Angie’s etc. The “best” vote of confidence was that this indiv was a longtime “expert” on a Sat morning radio program. My big mistake. He did not get permits, hired subs that hired subs. did not catch improper work. could not verify materials for my job, etc. etc. The performance bond was inadequate to cover the huge amount of defective work so we relied on water intrusion tests for various insurance to become involved. Even so, the insurance would not cover “shoddy construction” or legal and profession fees. Let the buyer beware. This guy is “mr personality” and makes the worst politician seem normal. As I’ve told others. . even a murderer isn’t a murderer ’til he murders.