According to the Home Improvement Research Institute (HIRI), homeowners are expected to spend around $272 billion on remodeling projects in 2010. That’s a lot of cash any way you add it up and every dollar counts regardless of the job size. The Better Business Bureau (BBB) sees home improvement businesses as one of their highest complaint areas – every year – making planning and research critical.
“We have hundreds of contractors that have a great BBB rating, who are BBB Accredited, stand behind honest ethical standards, and are committed to arbitration if something goes sour” said David Polino, Better Business Bureau President. “Others don’t fare as well, some completely fail to meet basic obligations, and others have an F rating with the BBB.”
When it comes to hiring a business to work in or outside of your home, there’s a lot to consider. “Our homes are often our most valuable investment. The BBB hears horror stories every year because someone didn’t do their homework. Why take that risk?” added Polino.
The BBB offers the Do’s and Don’ts for anyone considering home repairs this year:
Do’s:
· Do make a project plan. Know what you want to tackle and how much you have to spend.
· Do check with the BBB. Look up the contractor’s BBB reliability report at bbb.org. Is the business BBB Accredited? If they are, they have agreed to uphold the highest standards, respond to any concerns and arbitrate if necessary.
- Do ask for Help. Ask your friends or family for references or get the job started with BBB Request-a-Quote. It’s a free program, available 24/7 on-line at bbb.org. After completing a simple 1,2,3 step process, consumers will receive bids from qualified BBB Accredited Businesses within a few days.
- Do get a written contract. New York State Law requires that home improvement contracts must be in writing, include a description of the work, and materials used. You must receive a copy before work begins.
Don’ts:
- Don’t fall for Common Red Flags – You can avoid being victimized by illegitimate contractors by knowing common red flags.
- Solicits Door-to-door. Be suspicious if a contractor knocks on your door. Legitimate contractors rely on referrals from satisfied customers or word-of-mouth advertising.
- Uses High Pressure Sales or Offer Special Discounts that only last on-the-spot or for a few days,
- Uses Ploys like they have a special deal from leftover materials, or they use a line about working in your neighborhood,
- Offers Special Financing Deals – if you go to “my lender,”
- Lacks a local Business Listing or has an out-of-town license plate.
· Don’t pay up front - The BBB recommends the 3-3-3 rule. One third up front, one third at a half-way milestone mark, and one third at the completion of the work.
· Don’t pay cash – The BBB also recommends paying by check or credit card. Both have more protections with your bank. Once your cash is gone, it’s gone.
· Don’t Assume. We all know that old saying and it’s true - most items like knowing whether your contractor has the proper insurance, permits, licenses and confirming that your money is safe in an escrow account are details you should research and verify.
It doesn’t matter whether you are planning a small repair or a big remodeling job - asking lots of questions and doing your research to hire the right contractor can make all the difference. The BBB recommends that consumers obtain 2-3 estimates for their project, and to keep in mind that the 3 day cooling off rule applies to most home repair contracts. To check out the business history for a particular company, or to find more information about hiring contractors, visit bbb.org.
To schedule an interview with a BBB spokesperson, please contact Peggy Penders with the BBB at 800-303-4490.