Don't Let Your Home Repair Project be Another Casualty

A week after tornadoes and severe storms wreaked havoc across a number of Georgia counties, many residents are now faced with the task of repairing and rebuilding homes that were damaged.  Consumers should be very careful in choosing a contractor or they could end up with someone who does shoddy work, exceeds agreed-upon costs or takes longer than promised to complete the job.  More seriously, there are scammers who specifically try to exploit disasters such as the recent storms.  They know that people who have experienced this type of devastation may be so desperate to get their lives back to normal that they don’t question the costs they’re quoted or thoroughly check out the person they’re hiring.  In addition to charging exorbitant prices, home repair scammers may charge for unnecessary repairs, do sub-standard work or accept payment for work that never gets done.

So, how do you choose a competent builder and ensure you’re getting a fair deal? It’s important to do your homework first, especially since general contractors are currently not required to be licensed by the state.  (Note:  That will change as of January 1, 2008, although certain specialty occupations, such as roofers, painters, drywall contractors and repair handymen will still be exempt.)

Tips on Choosing a Contractor:

• Ask friends, neighbors and coworkers for referrals.
• Contact local trade organizations, such as the Home Builders Association of Georgia, to find contractors in your area.
• Check with the Better Business Bureau to see if there are any complaints against the business.
• Ask to see the contractor’s business license and then check with the county or city business license department to make sure it is valid.
• Ask for references of customers who had projects similar to yours.  Contact each reference and inspect the work if possible.
• Get written estimates from several companies for identical project specifications.
• Always insist on a contract for work to be performed, with all guarantees, warranties and promises in writing.  Agree on start and completion dates and have them written into the contract.
• Make sure the contractor gets a building permit, and that he does so under his name or the name of his business.  
• Ask to see proof of insurance (personal liability, workers’ compensation and property damage).
• Have the contractor require any subcontractors to sign a lien waiver when payments are received.  This will protect you and your assets in the event that the contractor does not pay his subcontractors.
• Changes to the project are to be expected, so be sure to anticipate how they will affect costs and deadlines.
• Consider setting payment terms in conjunction with completed stages of the job.
• When the job is done, make sure it matches the terms of the contract.
• Do not pay for any work that is incomplete.

How to Spot a Possible Scam:

• Work is unsolicited, repairman goes door-to-door.  He may show you checks received from other neighbors as proof of his credibility.
• Business is not listed in the local phone directory or contractor refuses to give out his address.
• No written quote/contract.
• Contractor only accepts cash as payment.
• Contractor offers special introductory offers or a discount valid only for today.
• Insistence that you pay in full before all work has been completed.
• Small job expands into huge job, or additional problems are later “discovered”.
• High pressure sales tactics, scare tactics or threats.

If you have been the victim of home repair fraud, contact the Governor’s Office of Consumer Affairs at 1-800-869-1123.

Individuals who have been severely affected by the recent storms may seek disaster relief through the government by contacting FEMA at 1-800-621-FEMA (3362).

For additional information, please the Governor’s Office of Consumer Affairs.