With Home Reno, It's Buyer Beware
Protect Yourself From Disreputable General Contractors
Aug 6, 2008
Don’t go digging in the Yellow Pages to find a general contractor. The best place to find a reputable contractor is through word of mouth referrals. But even then, it’s a good idea to follow some guidelines for your own protection.
Scott Andrews, owner and president of the Indiana-based Andrews Construction, is all too familiar with shady businessmen (and women) who promise to deliver spectacular results in home or business construction or remodeling, only to be discovered as scam artists.
“Even if you get a personal referral from a friend or business associate,” says Andrews, “check references anyway. Don’t take for granted that one good reference equals all good references.”
He also says that just because a contractor has a list of references doesn’t necessarily mean they’re good references. Check them all out before making any agreements. And if they don’t have any references – or refuse to provide them – simply walk away.
Andrews has other suggestions:
- Check with the local Better Business Bureau or Angie's List to see if there are any complaints filed against the contractor.
- If no complaints are filed and references come back clean, ask to see samples of his most recent work.
- Never give money up front, even if asked. Some contractors say they won't start working without a deposit or down payment, but Andrews says, let them start the work, and then pay them the deposit at the end of the day's work.
- Never pay cash for work done on your home or business. Always have a paper trail.
- A fixed business address and fax number are good indicators the contractor is legitimate.
- Make sure the contractor offers you the opportunity for you to sign a contract with him to enter a business together. "This is standard business practice," says Andrews. "The contract spells out the scope of work and what the contractors responsibilities are. Anyone not willing to follow this practice is suspect."
- Don't fall for the high pressure sales pitch such as, "This offer is only valid until I walk out the door." And don't cave to the pressure of buying more expensive options than your budget will allow.
- Always ask to see the contractor's license.
- Andrews encourages obtaining several bids on your project. If one contractor's bid is far below the others, this is a red flag. Perhaps the contractor is unfamiliar with the work in question or intends to have cost run-overs.
While these suggestions may seem elementary and common sense practice, Andrews says he has seen too many people get burned by not following some general guidelines that provide a hedge of protection. And the best piece of advice from Andrews is to simply trust your gut.
