Don't Let Repairs Be Another Disaster Headache
Release Date: July 25, 2002
Release Number: 1421-30
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Denver, CO -- Officials from the Federal Emergency Management Agency (FEMA) and the Colorado Office of Emergency Management (OEM) advise Colorado residents who have fire-related damage to be careful when hiring unknown contractors to clean up and repair their homes and businesses.
"It's unfortunate, but disasters often bring scam artists into the area to take advantage of the situation," said Federal Coordinating Officer Steve Emory. "Some scam artists claim to be 'FEMA certified.' FEMA neither certifies nor endorses any private-sector contractor."
Residents must be especially alert for door-to-door solicitors who hand out make-shift flyers and promise to speed up the insurance or government claims process.
State Coordinating Officer Tommy Grier said, "All FEMA and OEM personnel carry photo identification and disaster victims should never hesitate to ask to see it."
Emergency management officials also offer the following suggestions on how to be a wise consumer:
- Use reliable, licensed contractors. Call the Better Business Bureau of Colorado at 303-758-2100 to inquire about a business before signing a contract.
- Get a written estimate. Be sure to obtain a written estimate for the job and read the fine print. Compare the services and prices of several reputable contractors before making a final decision. Hire local contractors, if possible. Some contractors charge a fee for an estimate, which is often applied to the price of subsequent repairs they make.
- Check references. Contractors should be willing to provide the names of previous customers. Call several former customers who had similar work done to make sure they were satisfied with the job.
- Ask for proof of insurance. Make sure the contractor carries general liability insurance and workers' compensation. If the contractor is not insured, the homeowner may be liable for accidents that occur on the property or to the house/building.
- Insist on a written contract. A complete contract should clearly state all the tasks to be performed, all associated costs and the payment schedule. Never sign a blank contract or one with blank spaces. Make sure the contract clearly states who will apply for the necessary permits or licenses. Have a lawyer review the contract, if substantial costs are involved, and keep a copy for your records.
- Get any guarantees in writing. Any guarantees made by the contractor should be written into the contract. The guarantee should clearly state what is guaranteed, who is responsible for the guarantee and how long the guarantee is valid.
- Have work inspected. If excavation work is being performed (e.g., sewers or basement walls) make sure a qualified inspector examines the work before it is hidden from view to avoid similar problems in the future.
- Make final payments when the work is completed. Do not sign completion papers or make the final payment until the work is completed to your satisfaction. A reputable contractor will not threaten you or pressure you to sign if the job is not finished properly.
- Pay by check. Avoid on-the-spot cash payments. The safest route is to write a check to the contracting company. A reasonable down payment is 30 percent of the total cost of the project, to be paid upon initial delivery of materials. Federal law gives consumers a three-day "cooling off" period for unsolicited door-to-door sales of more than $25.
- Canceling a contract. This should be done within three business days of signing. Be sure to follow the procedures for cancellation that are set out in the contract. Send the notification by registered mail with a return receipt to be signed by the contractor.
Consumers who have problems with a contractor or have been victims of fraud are urged to contact the:
Consumer Protection Office
Colorado Attorney General's Office
1525 Sherman St., 5th Floor
Denver, CO 80203
Tel. 1-800-222-4444
Last Modified: Friday, 15-Aug-2003 09:58:44