Prevent Home Repair Scams and Disputes
Home improvements can be costly, and home-improvement fraud is always one of the most common consumer complaints. Examples include local contractors who ask for substantial up-front payments, do little or no work, and never finish the job right. Some contractors quote a price and then unfairly charge a lot more as the job progresses. And some are the old “fly-by-night” traveling scam-artists who “case” neighborhoods looking for potential victims, knock on their door, and offer to make driveway, paving or roof repairs.
Follow these tips to avoid being taken by home-repair scams and disputes:
 | Don’t fall for the “knock-at-your-door” scam where someone shows up “out of the blue” and says your driveway needs repaving or your house needs new shingles – and they “just happen to have materials left over” at a big price discount. They are sure to take your money and run, without doing the job at all or doing it right. |
| Check out contractors before you sign a contract or pay any money. Request local references -- and check them out. Contact the Attorney General’s Office to see if it has complaints (call 515-281-5926, or 888-777-4590.) Contact the Better Business Bureau (515-243-8137, or www.bbb.org.) Check to see if a contractor has been sued by unsatisfied customers -- go to www.iowacourts.state.ia.us. |
| Get several written estimates, choose the best, and get a contract in writing. Before any work begins, agree on a written contract detailing work to be done, responsibility for permits, costs, and any other promises. Ask for a copy of the contractor's liability insurance certificate. Put start and completion dates in writing, and consequences if the contractor fails to meet them. (Example: the contract could be nullified if the contractor doesn't start on time.) Note, if you sign a contract at your home, in most cases you have three business days to cancel. |
| Avoid paying large sums in advance if you don’t know the contractor. If you need to make a partial advance payment for materials, make your check out to the supplier and the contractor. Insist on a "mechanic's lien waiver" in case the contractor fails to pay others for materials or labor. |