Experts: Do your homework on contractors

Before you count on Craigslist.com to find a roofer or take bids from a passing out-of-state “mold elimination specialist,” you might want to consider some advice from experts.

Bill Clement, a contractor who runs Handyman Matters in La Marque, has seen the devastation to island homes and is already working long days to repair his clients’ dwellings.

“There are several things that people should do,” Clement said. “First they should chat with prospective contractors and check their identification carefully. If you know who they are, you’ll have some recourse.”

Some local firms work on a daily rate and offer clients the right to stop the repairs at any point, a practice which gives the householder some protection against the danger of an unending upward spiral of repair costs, Clement said.

He said legitimate contractors should not ask for a large advance for remediation work.

Clement said legitimate repair businesses would not be upset if homeowners checked on progress as repairs are being made.

“Paying by credit card or check is best,” he said. “Paying in cash can be very shaky. I know of one lady who paid $5,000 down and she hasn’t seen the person she gave the money since. I won’t insult the word ‘contractor’ by calling him that.”

A small down payment, with moderate regular sums as the repairs are made, may offer a safer and more sensible alternative for repairs done by small firms.

“You really don’t need to agree to give your contractor a lot of money up front in cases like this,” Clement said. “And you can agree to pay them at the end of each day.”

Those with Web access may choose to consult the Better Business Bureau at Houston.bbb.org, which includes a “BBB Hurricane Ike Recovery Kit” with additional tips on hiring restoration firms.

No Internet? The Bureau also has a 24-hour company report line that offers details on contractors, including listing complaints it has on file, if any.

Just call 877-468-9222 and enter the firm’s phone number to listen to a detailed, automated report on both member and nonmember firms.

The Texas Attorney General’s Office also offers tips and an online mechanism for filing complaints about disaster-related scams and contractor malpractice. The phone number for their regional office is 713-223-5886.

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Advice From The Texas Attorney General’s Office

• If you are insured, call your insurance adjuster and have them make an estimate of the damage and probable repair cost. This will give you a benchmark estimate, prepared by a professional, when you negotiate with contractors.

• Get more than one estimate. Don't be pushed into signing a contract right away. Take your time.

• Check the contractor out with the Better Business Bureau. Ask if there are any complaints about the company.

• Get references from past customers and check them.

• Get the salesperson's license plate number.

• Avoid out-of-town businesses. If the repair job turns out to be substandard, this can make correcting the problem or getting your money back more difficult.

• Get everything in writing and keep a copy of all documents. The total cost, work to be done, schedule, payment terms and other expectations should be written in specific detail. A notice of cancellation — giving you the right to change your mind within three business days — must be included if the transaction occurs at your home.

• Do not sign a contract with blanks. Unscrupulous salespeople could enter unacceptable terms later.

• Ask for proof of insurance. Make sure that the contractor has disability and workers' compensation insurance. If the contractor is not insured, you could be liable for accidents on your property.

• Never get too far ahead on the payments. Arrange for an independent agent (insurance adjuster or real estate inspector) to inspect the completed work before you make full payment. If you pay too much up front, the contractor has little incentive to return and finish the job.

• Find out in writing if the contractor or business will place a lien, security interest or mortgage on your property.

• Ask for guarantees in writing. If the contractor provides guarantees, they should be written into the contract, clearly stating what is guaranteed, who is responsible for the guarantee (the dealer, the contractor, or the manufacturer), and how long the guarantee is valid.

• Don't sign completion papers or make final payment until the work is completed to your satisfaction. A reputable contractor will not threaten you or pressure you to sign if the job is not finished properly.

In summary, be cautious and take your time.

Be especially suspicious of door-to-door salespeople who make "low-ball" estimates, refuse to leave a contract overnight so you have time to review it, or try to sell their services to you by playing on your emotions.

Source: Texas State Attorney General