Beware Of Fraud in the Wake of Floods
Release Date: April 20, 2001
Release Number: 1364-08
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Quincy, MA -- State and federal disaster recovery officials are advising Massachusetts residents who have disaster-related damage to be extremely careful when hiring contractors to clean up and repair their homes and businesses.
"In disaster situations, scam artists are often ready to take advantage of the misfortunes of others," warns Stephen J. McGrail, state coordinating officer for disaster recovery and director of the Massachusetts Emergency Management Agency (MEMA).
"The recovery process can be a positive one if you take your time, talk to building and floodplain officials, and select a contractor with great care," added Federal Coordinating Officer Louis H. Botta of the Federal Emergency Management Agency (FEMA).
The Massachusetts Attorney General's Office and the Better Business Bureau offer the following "Consumer Beware" suggestions:
- USE RELIABLE LICENSED CONTRACTORS AND HIRE LOCAL CONTRACTORS IF POSSIBLE. Check with the Massachusetts Better Business Bureau, 508-652-4800, and local business organizations for complaints against contractor. Check references and call the Massachusetts Board of Building Regulations and Standards at 617-727-8598 to see if a contractor is properly registered.
- GET A WRITTEN ESTIMATE. Read the fine print and compare several competing services and prices before settling on one contractor.
- ASK FOR A WRITTEN CONTRACT. Identify all tasks to be performed, all associated costs, payment schedule, and who applies for necessary permits and licenses. Have a lawyer review the contract if substantial cost is involved. Keep a copy of the signed contract. Never sign a blank contract.
- ASK FOR A WRITTEN GUARANTEE. This should state what is guaranteed, who is responsible and how long the guarantee is valid.
- GET PROOF OF INSURANCE. Make sure your contractor carries general liability and workers' compensation insurance.
- PAY BY CHECK. Avoid on the spot cash payments. It is best to write a check to the company. Thirty percent of the total cost is a reasonable down payment. If a contractor insists on an advance payment for materials, make the check out to the supplier, or to both the supplier and the contractor.
- HAVE WORK INSPECTED. This is especially true for sewers or basement walls before they are hidden from view. Call your town's building inspector.
- DON'T MAKE FINAL PAYMENT UNTIL THE WORK IS DONE TO YOUR SATISFACTION. Be sure to obtain lien waivers to ensure that no one who supplied materials can put a lien on your home because the contractor did not pay them.
- IF NECESSARY, CANCEL A CONTRACT. In Massachusetts, the consumer has three business days to cancel a contract if it was made away from the contractor's primary place of business and it was for more than $25. Send notification of cancellation by registered mail.
Persons who are having problems with a contractor or who suspect fraud should call the Attorney General's Office Consumer Hotline at 617-727-8400, Monday through Friday, 9 a.m. to 5 p.m.
Last Modified: Monday, 27-Oct-2003 13:01:51