Contents:
New Home Warranty Act
Contractor Hiring Checklist
Contractor Scams
Consumer Tips
|
|
|
Hiring A Contractor
- Checklist for
Consumers |
|
|
-
Hire
only Louisiana
State Licensed
or Registered
contractors.
-
Commercial Projects over $50,000
require state license
-
Residential New Construction of Single
Family Homes require state license
-
Home Improvement/Remodeling over
$1,500 requires state registration
-
Hazardous materials or mold
remediation over $1.00 requires state
license
-
Verify Contractor License or Registration
number at 1-800-256-1392 or
clicking here
and search for contractor
license/registration number.
-
Get at least 3 local area references and
review contractor experience.
-
Get at least 3 bids on the work to be
performed.
-
Get a written contract and don’t sign
anything until you understand the terms of
your contract clearly.
-
Pay 10% down, or $1,000, whichever is
less, depending on project size and
reasonable starting cost requirements.
-
Don’t let payments get ahead of work
completed. Keep a record of all payments.
-
Don’t make the final payment until you are
satisfied with the job.
-
Never pay cash.
-
Keep a job file of all papers relating to
your construction project.
|
Unscrupulous
Contractor Scams |
|
|
| |
Door To Door
Solicitations |
| |
|
A solicitor
offers to do roofing, painting or paying
work at a reduced price. Once payment is
made, little or no work is done and the
project is abandoned. |
| |
|
| |
High
Pressure Sales |
| |
|
An
unscrupulous contractor pushes for an
immediate decision about work, which makes
it impossible for the homeowner to get
competitive bids, check
licenses/registrations and review
references. |
| |
|
| |
Scare
Tactics |
| |
|
A deceitful
contractor offers to perform a free
inspection, then claims that faulty
wiring, bad plumbing, or a leaky roof put
the homeowner in danger. The alarmed
homeowner agrees to unnecessary and
over-priced work. |
| |
|
| |
Demand
for Cash |
| |
|
A contractor
demands cash
payments, sometimes
going so far as to
drive the victim to
the bank to withdraw
funds. With
money in hand, the
unscrupulous
operator takes the
money and runs |
| |
|
| |
Illegally
Large Down Payments |
| |
|
A dishonest
contractor takes more for a down payment
than is reasonable, claiming to need
instant cash for supplies and to pay
workers. A down payment shouldn’t exceed
10% or $1,000, whichever is less, or
reasonable to the size of the project
after you have investigated the
license/registration, and verified the
references of the contractor. |
| |
|
| |
Verbal
Agreements |
| |
|
A contractor
states that a written contract is
unnecessary—promising to deliver on the
verbal agreement. The shady contractor
takes advantage of the situation to
perform shoddy work or none at all. |
| |
|
| |
What You Should Know
About Payments |
| |
-
Don’t pay
cash.
-
Include a
payment schedule in your written
contract.
-
Don’t pay
more than 10 percent of the job or
$1,000, whichever is less, as a down
payment.
-
Don’t let
payments get ahead of the work.
|
| |
|
More Consumer Tips
Relative to Hiring
Construction
Contractors |
|
|
| |
Caveat Emptor
Let The Buyer Beware
Most licensed or registered contractors
are competent, honest, hardworking and
financially responsible. However, new
residential construction, and home
improvement projects are a top source of
consumer complaints nationwide. Most of
the problems that the Louisiana State
Licensing Board for Contractors see could
be prevented if homeowners knew their home
improvement rights and took responsibility
for their project. A responsible and
informed consumer can work more
effectively with reputable contractors who
follow state licensing laws and also
adhere to other state laws regarding
general liability, workers compensation,
and laws governed by the Department of
Revenue and Taxation.. By being informed
the consumer can avoid being victimized by
unscrupulous or unlicensed contractors.
The “buyer beware” principle can help
prevent frustration and disappointment
when preparing to make a major decision.
By carefully considering what you want
done to your property, what it will
realistically take to do the job, and
taking the time to research and check the
license or registration status of the
contractor you hire to do the job, you may
avoid many of the headaches often
associated with new construction or home
improvement projects.
Almost everyone knows someone who has a
nightmare story to tell about building or
remodeling their home: the length of time
it took; or the cost overruns associated
with the project; or worse; a contractor
who started, but didn’t finish the
project; but, instead ended up with the
owner’s hard earned money, and an
uncompleted project. The added agony,
frustration, and expense of having to
finish the project themselves or hire
another contractor to finish the work is
indeed a nightmare situation!
Protect yourself, and your pocketbook;
don’t become a victim! Take time to
ensure that the contractor is licensed.
Contact the Louisiana State Licensing
Board for Contractors:
At 1-800-256-1392 or search our contractor
license database by
clicking here. |
| |
|
|
|
|
