Once again, contractors are going door to door in Allegany County cheating frail and elderly seniors out of their hard earned money. They promise to do work on their homes that don’t need to be done and charge outlandish costs to do this so–called work. The Allegany County Office for the Aging wants to remind everyone that while most contractors are honest, hardworking professionals, a few bad apples can spoil it for everyone. Please remember, honest contractors do not go door to door.
HOW THEY SCAM YOU
These are some of the more common scams these contractors are using.
Scam 1: I’ll Need the Money Up Front - This is the most common ruse reported to the Better Business Bureau. Your contractor explains that because he has to order materials and rent equipment to get the job started, he needs, say, 30%-50% of the project price up front. Once you’ve forked over the dough, one of two things happens: He disappears on you, or he starts doing slapdash work knowing that you can’t really fire him because he’s sitting on thousands of your dollars.
How to protect yourself: Never prepay more than $1,000 or 10% of the job total, whichever is less. That’s enough to establish that you’re a serious customer so the contractor can work you into his schedule — the only valid purpose of an advance payment. As for the materials and rentals, if he’s a professional in good standing, his suppliers will provide them on credit.
Scam 2: Take My Word For It - When you first meet with the contractor, he’s very agreeable about doing everything exactly to your specifications and even suggests his own extra touches and upgrades. Some of the details don’t make it into the contract agreement, but you figure it doesn’t matter because you had such a clear verbal understanding. Pretty soon, you notice that the extras you’d discussed aren’t being built. When you confront the contractor, he tells you that he didn’t include those features in his price, so you’ll have to live without them or pony up additional money to redo the work.
How to protect yourself: Unfortunately, you have few, if any, legal options against your contractor because you signed a contract that didn’t include all the details. Next time, make sure everything you’ve agreed on is written into the project description. Add any items that are missing, put your initials next to each addition, and have the contractor initial it, too, all before you sign.
Scam 3: I Don’t Need a Permit - You’re legally required to get a building permit for any significant construction project. That allows building officials to visit the site periodically to confirm that the work meets safety codes. On small interior jobs, an unlicensed contractor may try to skirt the rule by telling you that authorities won’t notice. On large jobs that can’t be hidden, the contractor may try another strategy and ask you to apply for a homeowner’s permit, an option available to do-it-yourselfers. But taking out your own permit for a contractor job means lying to authorities about who’s doing the work. And it makes you responsible for monitoring all the inspections since the contractor doesn’t answer to the inspector, you do.
How to protect yourself: Always demand that the contractor get a building permit. Yes, it informs the local tax assessor about your upgrade, but it weeds out unlicensed contractors and gives you the added protection of an independent assessment of the work.
Scam 4: We Ran Into Unforeseen Problems - The job is already under way, perhaps even complete, when this one hits. Suddenly your contractor informs you that the agreed-upon price has skyrocketed. He blames the discovery of structural problems, like a missing beam or termite damage, or design changes that you made after the job began. The additional fees might be legitimate, but some unscrupulous contractors bid jobs low to get the work and then find excuses to jack up the price later. If you’re unsure whether your contractor is telling the truth about structural problems, you can get an impartial opinion from a home inspector, the local branch of the National Association of Home Builders, or even your local building department.
How to protect yourself: Before signing the contract, make sure it includes a procedure for change orders. These are mini-contracts containing a work description and a fixed price for anything that gets added to the job in progress. The extra work, whether it’s related to unforeseen building issues or homeowner whims, can proceed only after the change order is signed by both homeowner and contractor.
Scam 5: I’ve Got Extra Materials I Can Sell You Cheap - This hoax is usually run by driveway paving companies whose materials can’t be returned to the supplier. So the crew pulls up to your house with a load of leftover product and quotes a great price to resurface your driveway on the spot. Even if it’s really a bargain (by no means a sure thing), taking them up on the offer is risky if you have no idea who they are and haven’t checked references. And if the driveway starts cracking next year, you can bet you won’t find this bunch again.
How to protect yourself: Never hire a contractor on the spot. Take your time to check contractors out to make sure they have a good reputation and do quality work.
BEFORE YOU HIRE A CONTRACTOR
Here are some very important tips to ensure you are getting fair and honest work that you know needs to be done to your home.
1. Know what work you want done. Make a thorough list and be specific. This will enable you to easily negotiate with various contractors, lock in firm prices and avoid surprises. Having a written list will also help in ferreting out unscrupulous contractors who might try to convince you to have additional work done that you don’t want or need.
2. Know what permits are needed. Even though a qualified contractor should be aware of necessary permits and inspections, you should know them too. Check with your local building and codes office before beginning a project.
3. Shop around. Look at multiple contractors. Get quoted prices for the work you want done and compare. Also, find out the proposed timeline for when each contractor can start and finish the project.
4. Get references and check them. Ask your friends and neighbors which construction contractor they used for home improvement projects and whether or not they were satisfied with the results. Get references from the contractor directly and speak directly to former customers. Check your local Better Business Bureau to see if the contractor is accredited.
5. Get proof of insurance. If a worker is injured, or damage is caused on your property, you could be held liable if the contractor does not have the proper insurance. So make sure the contractor is insured.
6. Never pay the full price upfront. Establish a payment schedule and stick to it. Often this could include an initial down payment and subsequent incremental payments until the work is completed. Withhold final payment until all the work is completed and all required inspections and certificates of occupancy are finalized.
7. Put it in writing. New York state law requires a contractor to provide a written contract for home improvement work. The contract should include a timeline for work to be completed, a payment schedule and as many specifics as possible about the project, such as types or brands of materials. On larger projects, architect or engineer plans should specify virtually every detail of a project.
8. Know where your payments are going. Contractors are required by state law to either put your payments into an escrow account and use it only for your job until it is substantially complete (contractors are legally required to disclose where money will be held in escrow) or to prove they have bond insurance to protect your money. Ask for proof of which option they use before hiring them.
9. Never do business with a contractor who is unwilling to abide by any of the conditions above. If the contractor doesn’t meet the above criteria, look elsewhere. Even if the contractor seems reputable, it’s simply not worth the risk.
HOW TO FILE A COMPLAINT
If you are working with a home improvement contractor and something has gone wrong, you should follow the steps below:
1. First, speak with your building contractor. Let the contractor know your concerns with the project and try to reach a resolution. The goal, of course, is to have the work finished to your satisfaction.
2. If a resolution is not possible, you can file a complaint with the Office of the Attorney General. Download a complaint form at https://forms.ag.ny.gov/CIS/
3. Compile all documents relevant to your home improvement project, i.e., contract; receipts; cancelled checks; photographs of the work site, etc. You should make copies of these documents for your records.
4. Fax or mail all documents along with your original complaint form to the proper regional office.
5. Or call the Allegany County Office for the Aging at 585-268-9390 or 1-866-268-9390. We can help you file a complaint with the NYS Attorney General’s Office.
