Crooked contractors like to prey on people who have experienced a natural disaster. In disaster areas they can pose as federal employees. They do not need someone’s misfortune to try to separate you from your money. There reported cases of scams on the elderly, people looking for a cheap deal and the unsuspected. Here’s an example.
“A roofing contractor who hadn’t seen much business lately went neighborhood by neighborhood, offering to do free roof inspections.
The roofing contractor offered a story about how the original builder used inadequate roofing materials and that he has personally come across three houses in the neighborhood that would have had serious damage if not for his free inspection. He of course indicates that there is no cost for the inspection, but if damage is found, he can give phenomenal prices due to his crew already being in the neighborhood.
So an elderly woman, who has nothing to lose, agrees to his offer. After all, the man seems nice and sincere, and of course, the inspection was free. Who wouldn’t take advantage of a free offer like this?
If such repairs were necessary, it only makes sense that this roofer would be able to give better pricing because of volume within the neighborhood. Allowing him to do this would certainly save her tons of misery if there was damage and the next rain storm caused the roof to leak.
You guessed it; the roofer found that the shingles were weak and poorly attached. “A good wind and rainstorm and there would most certainly be major damage.” How lucky could she be that this nice man had come along when he did?
The $7500 price tag seemed somewhat high, but what did she know about prices? And how ungrateful could she be to question this nice man who’d come along with his free offer and had saved her home. As he kept telling her, he was giving her a 20% discount for signing up right now and ordering the same shingles as the other 3 families.
Again, he had his crew in the neighborhood next week and it only made sense that he could get some quantity discounts if he could purchase triple the usual number of shingles.”
- Be wary of contractors who contact you door-to-door or by telephone, especially those offering bargains, scare tactics, or immediate service.
- Don’t allow contractors to pressure you into signing documents.
- Don’t sign documents that have blank spaces that can be filled in later.
- Beware of those contractors who talk down to you!
- Don’t forget to have a written agreement that details the work to be done, the materials that will used and the start and completion date. Have independent contractors sign a contract, stipulating that the individual is being hired as an independent contractor and spelling out the nature of the work that will be performed, how he or she will be paid, and when the work is to be completed.
- Get at least three bids and don’t necessarily choose the lowest bid – you’ll probably get what you paid for, and not be happy
- Don’t do business with an unlicensed contractor – EVER. Check the contractor’s license with the Contractors State Licensing Board (state of California). You can Google the term for your state.
- Get a reliability report from the Better Business Bureau. In addition to checking the BBB, I would recommend visiting the Rip Off Report: By Consumers.
- Get three references and check each reference thoroughly
- Pay in full only 1) When the job is completed to your satisfaction, 2) You’ve received a “lien waiver” showing the contractor has paid all sub contractors and suppliers, and 3) An inspector has signed off on the job (if required).
- Never agree to financing through your contractor without shopping around and comparing loan terms.
- Avoid those contractors who require you to secure a permit. Contractors should provide all necessary permits. If they don’t, they may not be licensed or registered properly under the requirements of your state or locality.
- Make sure the contractor is protected and has liability and property damage insurance.
Norm's Corner 