MEMA, FEMA Urge Caution When Hiring Contractors
Release Date: March 2, 2006
Release Number: 1604-264
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BILOXI , Miss. -- As the rebuilding effort along the Mississippi Gulf Coast ramps up, the Mississippi Emergency Management Agency (MEMA) and Department of Homeland Security's Federal Emergency Management Agency (FEMA) urge property owners to exercise caution when hiring contractors to perform work on their home or business.
Contractors from all over the country are here to help rebuild our Gulf Coast , said Robert Latham, director of MEMA. However, a reconstruction effort of this magnitude can attract individuals soliciting work who may be uninsured, unlicensed, or simply looking to take advantage of the unsuspecting.
Tips for avoiding potential pitfalls when hiring contractors:
- Use reliable, licensed contractors: Ensure a contractor is licensed through the Mississippi State Board of Contractors at 1-800-880-6161 and visit Mississippi State Board of Contractors or the Disaster Contractors Network. FEMA and MEMA do NOT endorse any contractor.
- Check references: Ask for references, contact contractors' former clients to find out the level of satisfaction with their work and check for outstanding complaints with the Better Business Bureau of Mississippi at 1-800-987-8280 . Be wary of contractors soliciting work door-to-door.
- Ask for proof of insurance: Contractors should carry general liability and Workers' Compensation insurance. Otherwise, you could be liable for accidents on your property.
- Get a written estimate: Insist on getting a written estimate (from three licensed, insured contractors) that includes all work expected to be performed. Generally there is no fee for an estimate.
- Obtain all necessary building permits: Contact your local municipality for details regarding the permit(s) required for the work you intend to do.
- Get a written Contract: Make sure the contract is clear and includes all of the specific work to be completed, costs, payment schedule and timeframe for completion of work. NEVER sign a blank contract.
- Ask for a written guarantee: Get all guarantees in writing and include as many specifics as possible on coverage, limitations, and expirations.
- Pay by check: Make final payment upon satisfactory completion of work as stated in the contract.
- Get a receipt: Make sure the contractor provides receipts for all work related to the project.
- Have work inspected: Make sure all work defined in the contract is completed to your satisfaction before you sign any completion papers or issue final payment.
- Canceling a contract: If necessary, canceling a contract should be done within three business days of signing the agreement. Be sure to follow the instructions stated in the cancellation clause(s) in your contract and send notification by registered mail with a return receipt for the contractor to sign.
Consumers who have issues regarding contractors should contact the Mississippi Attorney General's office, Consumer Protection Division toll-free at 1-800-281-4418 or online at www.ago.state.ms.us . To report fraud, call the FEMA toll-free hotline at 1-800-323-8603.
FEMA manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, works with state and local emergency managers, and manages the National Flood Insurance Program. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Thursday, 02-Mar-2006 13:08:28