Take Extra Care When Hiring Contractors To Make Flood Repairs
Release Date: May 29, 2002
Release Number: 1410-32
» More Information on West Virginia Severe Storms, Flooding, and Landslides
Beckley, WV -- As floodwaters creep down, "disaster chasers" sometimes creep up. State and federal disaster recovery officials urge West Virginians who have disaster-related damage to be careful when hiring anyone to clean up and repair their homes and businesses.
"Scam artists are often ready to take advantage of the misfortune of others," said State Coordinating Officer Steve Kappa. "If you suspect someone is working a scam on flood victims, contact the authorities right away. We don't want people to be unduly rushed into shoddy work; but because of health concerns you shouldn't wait to make acceptable repairs. Be sure to document any work you do."
Scams can take many forms. For example, disaster recovery officials caution residents to be alert for unscrupulous door-to-door solicitors who may hand out makeshift flyers and ask for large cash deposits or advance payments in full. So called "free inspections" for pest control may result in unnecessary and expensive treatments.
"Rule one: If it sounds too good to be believed, it probably is," cautioned Federal Coordinating Officer Justo Hernandez. "Not just anyone who shows up to help might prove to be all that helpful."
The West Virginia Attorney General's Office offers the following suggestions on making wise disaster recovery choices:
- Use reliable, licensed contractors. Check with the West Virginia Division of Labor Contractor Licensing Department at (304) 558-7890. If there is a record of problems with a particular contractor, state officials can so advise. Try to work with contractors who maintain a real physical address rather than just a post office box.
- Most important -- get a written estimate. Be sure to obtain a written estimate for the job and read the fine print, all of it. Then, 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; some don't. If you agree to pay an estimate fee and you decide to work with that contractor, try to bargain so that any "estimate fee" is deducted from the final price of repairs.
- Check references. Contractors should be willing to provide the names of previous customers. But don't just settle for the names: Call several former customers who had similar work done to make sure they were satisfied with the job they received.
- 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 any accidents that may occur on the property.
- Insist on a complete written contract. A complete contract should clearly state all the tasks to be performed, all associated costs and the payment schedule: how much you have to pay and when. 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. If substantial costs are involved, have a lawyer look it over. Don't forget to keep a copy of the signed contract.
- 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 for 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 observer inspects the work before it is hidden from view to avoid similar problems in the future.
- Make final payments only 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. If you experience undue pressure, contact the local authorities there to protect your interests.
- Pay by credit card or check. Avoid cash payments. The safest route is to use your credit card or write a check to the contracting company. A reasonable down payment is 30 percent of the total cost of the project. Federal law gives consumers a three-day "cooling off" period to withdraw from door-to door sales of more than $25.
- Canceling a contract. Canceling a contract should be done within three business days of signing. Be sure to follow the procedures for cancellation 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 West Virginia Attorney General's Office Consumer Protection Division at 1-800-368-8808.
Last Modified: Tuesday, 26-Aug-2003 17:04:29