What You Should Know 

"I was just in the neighborhood..." Beware of a home improvement salesperson who comes to your door uninvited, saying he or she was in your neighborhood and noticed you need repairs to your roof, chimney, trees, driveway, windows, or whatever. Also beware of someone who wants to sell you a security system because of burglaries in the area or who wants to test your water and inspect your plumbing or furnace. 

Don't let them in your house and don't do any business with them! This kind of sales approach is standard practice for scam artists, who prey particularly on older persons. The person who has just enough shingles left over from a job in the neighborhood to do your roof will, most likely, take your money and disappear, or do such a sloppy job you will wish he or she had never appeared. 

Before selecting anyone to do work in your home, carefully evaluate what you want done. List the specific things you want a contractor to do. Find out about differences in types and prices of materials you want used. The more you know in advance about the materials involved in your project the better you can pick the contractor. 

Get some recommendations. Talk to your friends, family, and neighbors about their experiences with contractors. Were they satisfied with the work, the price, and the time it took to get the job done? Ask local suppliers of lumber or appliances about workers they respect. A painter whose work you liked might steer you to a good plumber. 

Check out the recommendations. Once you have your preliminary list of names, check them out. Contact your local Better Business Bureau and state consumer protection office to find out if any complaints have been filed against the firms. Check to see if they are licensed or registered in your state by calling the local or state licensing board. You can find their phone numbers in the government "blue pages." While licensing doesn't guarantee reliability, it's a minimum qualification to expect. The bottom line: Take the time to find a reliable home improvement contractor. 

Make comparisons. Call all the firms. Find out if they do the type of work you want. Are they available in your time frame? How long have they been in business? Get copies of proof that they are licensed, bonded, and covered by workers' compensation and liability insurance. Get references of satisfied customers and check out those other jobs. For bigger projects, go on a job site to see the prospective crafters at work. Also get references from banks, suppliers, and subcontractors to make sure the prospective contractors are financially reliable. 

Get three estimates. Have a face-to-face meeting with at least three contractors to talk about your specifications. You and the contractor need to have a clear understanding of the work to be done. You want to feel comfortable dealing with the people who will be working in your home. Get written estimates that give detailed specifications of the materials to be used, the labor charges, and the start and completion dates. 

Lowest may not be best. Take time to go over the estimates carefully. The lowest bid may not be the best choice. If there is a wide range between the bids, get an explanation. Is something missing? Are the material specifications different? The low bidder may be taking shortcuts on quality. Don't be rushed into signing quickly. Take your time in making a decision and get a second opinion before you sign anything. Any genuine good deal will still be there tomorrow. 

For More Information: 

Bob Vila's American Home
Television's prime remodeler Bob Vila tells how you can spot the top ten home repair scams.
URL: www.homearts.com/bvah/97scamf1.htm 

Better Business Bureau
For some areas of the country, you can search the Better Business Bureau to see the complaint history of home improvement contractors. By entering a business name, telephone number, or zip code, you can find out what reports have been filed on businesses you might use.
URL: www.bbb.org/reports/ 

National Consumer Law Center
The National Consumer Law Center, a nonprofit legal organization that helps consumers and their lawyers to effectively use consumer protection laws, has detailed information on how to protect yourself from home improvement scams.
URL: www.nclc.org/consumer/repair.html 

Administration on Aging
The Administration on Aging lists steps that homeowners can take to find a reliable contractor.
URL: www.aoa.dhhs.gov/aoa/eldractn/homemodf.html 

Federal Trade Commission
The Federal Trade Commission has tools you can use when you select a home improvement contractor.
URL: www.ftc.gov/bcp/conline/edcams/homeimp/index.html