BE A WISE CONSUMER WHEN HIRING CONTRACTORS


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BE A WISE CONSUMER WHEN HIRING CONTRACTORS
SIOUX FALLS, S.D. – When hiring a contractor, be informed and be careful.
People seeking help from contractors to repair or rebuild homes and businesses damaged by the severe storms and flooding in early May should be careful to hire trustworthy and competent professionals.
Officials with the South Dakota Office of Emergency Management (SDOEM) and the Federal Emergency Management Agency (FEMA) have compiled a list of important things to keep in mind when hiring contractors:
  • Get a written estimate. Compare services and prices before making a final decision. Also, read the fine print. Some contractors charge a fee for a written estimate, which is often applied to the cost of subsequent repairs they make.
  • Check references. Contractors should be willing to provide names of previous customers. Call several former customers who had similar work done to make sure they were satisfied with the job.
  • Ask for proof of insurance. Make sure the contractor carries general liability insurance and workers’ compensation. If the contractor is not insured, the homeowner may be liable for accidents that occur on the property.
  • Use reliable, licensed contractors. Call your local Better Business Bureau and other local sources to inquire about a business before signing a contract.
  • Insist on a written contract. A complete contract should clearly state all tasks to be performed, all associated costs and the payment schedule. Never sign a blank contract or one with blank spaces. Make sure the contract clearly states who will apply for the necessary permits or licenses. Have a lawyer review the contract if substantial costs are involved, and keep a copy for your records.
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BE A WISE CONSUMER WHEN HIRING CONTRACTORS – Page 2
  • Get guarantees in writing. Any contractor guarantees should be written into the contract, clearly state what is guaranteed, by whom and for how long.
  • Obtain a local building permit, if required. Permits may be required for site work, repairs, reconstruction or demolition. Contact your local building official for permit information.
  • Make final payments when the work is completed. Do not sign completion papers or make the final payment until the work is done to your satisfaction. A reputable contractor will not threaten you or pressure you to sign if the job is not finished properly.
  • Pay by check. Avoid on-the-spot cash payments. The safest route is to write a check to the contracting company. A reasonable down payment is 30 percent of the total cost of the project, to be paid upon initial delivery of materials. Federal law gives consumers a three-day “cooling off” period for unsolicited door-to-door sales of more than $25.
  • If necessary, cancel a contract in the proper manner. This should be done within three business days of signing. Be sure to follow the procedures for cancellation that are set out in the contract. Send the notification by registered mail with a return receipt to be signed by the contractor.
  • Report problems with a contractor or fraud to the South Dakota Attorney General’s Division of Consumer Protection at 605-773-4400 or call the Consumer Help Line at 1-800-300-1986 (South Dakota only).
For more disaster recovery information, go to the State of South Dakota’s Web site at www.disasterrecovery.sd.gov or the FEMA Web site at www.fema.gov.
FEMA coordinates the federal government’s role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.