These steps can help you to avoid contractor fraud, scams or receiving bad repair work.
Do Your Research
Always verify any person or company you’re considering for home repairs. Obtain their full name and business address, and request their Louisiana license. Ensure the company operates at the provided address. Check how long the contractor has been in business under their current name. Contractors may switch names to run from problems.
Check if the contractor is licensed or registered to do repair work in Louisiana, and in good standing with the state. You can download the free “La. Contractor” mobile app or use the contractor search function at the Louisiana State Licensing Board for Contractors at https://lslbc.louisiana.gov or call (800) 256-1392.
Ask for at least three references for their previous work, and check their reviews online and on social media. Speak to their previous customers, inspect the work done, and ask previous customers for their opinion of the contractor. The Better Business Bureau also has reviews on home contractors.
Get a copy of their proof of liability and call the insurer to verify that the coverage is valid. Get a copy of their workers compensation info.
Get Written Estimates
Get at least 3 written, detailed and signed estimates. Don’t accept estimates over the phone, and be wary of very low estimates. They could set up a “bait-and-switch” tactic. Make sure each contractor bids on the same work.
Any estimates should have start and end dates for the work. All work listed should be itemized with costs for each task and a total sum for all the work to be performed. Everything you want done needs to be listed, or you will not be able to do anything if it does not get done. For example, the contractor does not have to put crown molding back in unless the contract says it. Or if you expect a certain kind of flooring or tile, it needs to be written in the document.
Don’t Rush Into a Decision
Be wary of contractors contacting you for work. Resist high-pressure sales. Take your time and evaluate all of the estimates and to make your decision.
You may be concerned about a shortage of contractors after the hurricane. But because of the shortage many repairmen offer services even though they could not normally get a contracting job of this size. Some are just out to steal people’s money. Others may be well-meaning, but lack the experience to deal with hurricane repairs, get in over their heads, or promise services to too many people.
Document Everything
Once you agree on a contractor, sign a written contract with both you and the contractor signing. Make sure it clearly specifies the price, the exact work to be done, whether the contract covers materials as well as labor, who will perform the work, the amount of liability insurance coverage maintained by the contractor, and a time frame for the work to be completed. Keep a signed, clear copy of the contract in a safe place.
Don’t pay for the job in advance. Be wary of any contractor who demands full or half payment upfront. A reputable contractor will not require a down payment over 10 to 25 percent of the total. Insist that payments be made to the company, not to an individual. Get receipts on company documents of all payments.
One payment option is to pay by credit card. This may provide you with additional protection if there’s a problem. However, you must be able to cover those payments with other funds to avoid running up your credit card debt and interest charges. NEVER pay with cash.
Take pictures of home damage before repair work begins and as it progresses. Take pictures of your contractors, their employees and their vehicle license plates. Save the photos in a secure location.
Keep detailed notes of conversations about work changes, cost overruns, etc. Keep copies of all emails.
Know Your Rights and Responsibilities
Check with your homeowners and/or flood insurance agent to make sure your insurance covers falls or injuries to contractors.
Check with your city officials to see what permits contractors need to work on your property and verify that your permits have been filed and properly posted on your property BEFORE the start of the work
If You Believe You Have Been Defrauded:
- Keep all receipts, contracts, work orders, etc. for the work in question
- File a police report and keep copies of it
- File a complaint with the Louisiana State Licensing Board for Contractors at https://lslbc.louisiana.govor call (800) 256-1392.
For another great resource on these issues please visit: https://www.consumer.ftc.gov/articles/0242-hiring-contractor
The information provided in this post does not, and is not intended to, represent legal advice. All information available on this site is for general informational purposes only. If you need legal help, you should contact a lawyer. You may be eligible for our free legal services and can apply by calling our Legal Hotline at 1-844-244-7871 or applying online here.