Consumers, Beware When You Contract For Disaster Repairs
Release Date: November 7, 2003
Release Number: 1498-14
» More Information on California Wildfires
Pasadena, CA -- Contractors will play a major role in rebuilding fire-ravaged communities in Southern California. They will help boost the local economy as they construct new homes and businesses.
However, scam artists occasionally masquerade as legitimate contractors in
the wake of a disaster. They rely on a variety of schemes. For instance, some
offer to clear debris and then dump it nearby once they are paid, leaving the
homeowner liable for the cleanup. Others may demand a big deposit up front to
rebuild a home and later vanish with the money.
That is why state and federal disaster recovery officials advise Southern Californians whose property was destroyed or damaged by the recent wildfires to be careful when they hire contractors to clean up or rebuild their homes and businesses.
"Scam artists could turn up in Southern California, thinking they will strike gold at the expense of people already hard-hit by the wildfires," warned Steve Sands, registrar of the Contractors State License Board (CLSB). "Take the time to protect yourself."
The following suggestions are offered:
- Use reliable licensed contractors. Contractors working on
a job totaling $500 or more for labor and materials must be licensed. The
Contractors State License Board operates a disaster hotline at 1-800-962-1125
to answer contractor-related questions from those affected by the wildfires.
Consumers also can verify a contractor's license status or order publications
on the CSLB Website at www.cslb.ca.gov.
- Check the contractor's track record. Contact your Better Business Bureau
or local business trades council to make sure the contractor's company has
no outstanding consumer complaints against it.
- Get a written estimate. Compare the services and prices
of several reputable contractors before making a final decision. Hire local
contractors if possible.
- Check references. Call former customers who had similar
work done to make sure they were satisfied with the job.· Check to
see whether the contractor carries general liability insurance and make sure
the contractor carries workers' compensation. If the contractor is not insured,
the homeowner may be liable for accidents that occur on the property or to
thehouse/building.
- Ask for a written contract. Never sign a blank contract
or one with blank spaces. Have a lawyer review the contract if substantial
costs are involved.
- 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 10 percent or $1,000, whichever is less.
- Canceling a contract should be done within three business
days of signing. Be sure to follow the agreements stated in the cancellation
clauses. Send the notification by registered mail.
- Have work inspected. If excavation work is being performed (e.g., sewers or basement walls), make sure a building inspector or other qualified inspector signs off on the work before it is hidden from view to avoid problems in the future.
"Take the time to check out the people you hire,"
said William L. Carwile, III, FEMA federal coordinating officer. "Don't
let yourself be victimized twice. Finding a reputable contractor is an important
element in recovering from the wildfires."
The Governor's Office of Emergency Services coordinates overall state agency response to major disasters in support of local government. The office is responsible for ensuring California's readiness to respond to and recover from natural, manmade, and war-caused emergencies, and for assisting local governments in their emergency preparedness, response, mitigation and recovery efforts.
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages Citizen Corps, the National Flood Insurance Program and the U.S. Fire Administration.
Last Modified: Monday, 10-Nov-2003 07:45:14