Making improvements to your home can be a stressful endeavor, but even more so with the threat of home repair scams. Here are 4 tips to help you avoid home improvement scams.
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Up-Front Payment
Another scam to be on the lookout for is the contractor who asks you for a large up-front payment, or in some cases, the total payment, before the work even begins. Most of these scam artists will simply take the money and run – leaving the homeowner with empty pockets and a job that is never even started. A reputable contractor may ask for a small deposit, but most payments will be paid at the completion of the job, or for very large projects, in stages as the work is completed. Source: MoneyCrashers
Background
When you’re ready to hire a contractor, ask for proof that the company is properly licensed and bonded (to protect you against theft and damage), that it carries liability insurance, and that it provides workers’ compensation insurance. Source: RD
Recommendations
Avoid contractors that contact you unsolicited. Don’t hire a contractor based solely on an ad in a local newspaper, even if you’re offered a big discount or another incentive. Get recommendations from friends, neighbors, or relatives. Source: ConsumerReports
Contract
Ensure that the contract is clearly written and includes all relevant information. Fraudulent contractors may intentionally word contracts in an exploitative or ambiguous manner.
– A construction contract should always include the following pieces of information: the contractor’s name, address, and phone number, estimated start and completion dates, a description of the work, the total project price, and the payment schedule.
– The payment schedule is crucial. Avoid hiring a contractor who insists on being paid upfront or being paid in cash. Paying upfront or paying with cash makes it much harder to recoup your losses in the event of fraud.
– Never sign a contract that you do not understand. Also avoid contracts that have blank spaces that could be filled in with type after you sign. Source: wikiHow
Keep the following items in mind when hiring a contractor for home repairs. For more tips, contact us today!
Contact:
Kerrisdale Roofing & Drains Ltd.
168 W 71st Ave, Vancouver, BC V5X 4S7
(604) 360-2114
