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CONSUMER LAW: HOME REPAIRS
ADDITIONS & IMPROVEMENT: FREQUENT QUESTIONS, PROBLEMS, ANSWERS Every year, homeowners
nationwide spend over $100 billion on home improvements and repairs. The work
covers everything from foundation, water penetration, roof repairs, ducting, new
windows, etc. Over
the past several years home repair complaints have been one of the top five
complaints received by the Bureau of Consumer Protection. The Better Business
Bureau reports that complaints about home improvements have gone up 60 percent
since 1991. Problems range from poor workmanship and use of substandard
materials to hidden charges and outright scams. The
following information intended to help you get the home repairs and improvements
you want without being victimized by fly-by-night contractors and con artists.
Hopefully this information will help you avoid the common pitfalls of
home repairs and/or additions to the home of your dreams. Consideration
BEFORE you Choose a Contractor
If
you are ready to build a new home or remodel an existing one, you are probably
wondering what to look for in a responsible builder. Here are some tips! (a)
Ask for references. Talk with others who have had
work done by the contractor about their capabilities and quality of workmanship.
(b) Ask to see the contractor's work.
Check for yourself the quality of work. (c)
Ask for an insurance certificate to verify current workers' compensation and
general liability insurance. (Contractors without employees are not required to
carry workers compensation insurance). (d) Make sure the contractor has a permanent business location
(street address, not just a P.O. Box) and a good reputation with local banks and
suppliers. Ask for information about the contractor’s bank and suppliers. (e)
Make certain that any warranties, guarantees or other promises are in your
written contract. Always insist on a written contract and written change orders,
i.e. no changes unless you authorize them and know in advance what the cost will
be. (f)Get specific starting and completion dates; do not accept general
statements, “oh, around April 30th”.
(g) Beware of an unusually low
bid or low advertised price. If it sounds too good to be true, it probably is. (h)
Select a contractor you are comfortable with - one who understands your tastes
and needs and with whom you can communicate easily. (i)
Take your time. Most problems occur when consumers fail to investigate
contractors carefully before hiring them. The
Contractor’s Responsibilities
Your
home is probably your biggest investment. Poor
quality work can reduce the return on your hard earned invested dollars. A
reputable contractor provides the following services: (a)
Is
responsible for all phases of the job from start to finish - planning, labor,
materials and scheduling. (b) Coordinates
all work to avoid costly and inconvenient delays. (c) Obtains high quality materials and labor, sometimes at lower
prices than you would pay because of volume and knowledge of the marketplace. (d)
Performs work according to specifications, hires competent workers and
subcontractors and knows products that provide lasting satisfaction. (e)
Is familiar with design options, building codes and construction practices. (f)
Obtains all necessary permits, arranges for required inspections and complies
with insurance regulations. Without a reputable
contractor working on your behalf, you would have to assume responsibilities for
all of these obligations. The
Consumer’s Role in Construction As a homeowner, you help ensure a project goes
smoothly when you: (a) Designate one person to be the contact with the contractor, keep informed of the job's progress and answer the questions as they arise. (b) Make changes to the original contract in writing. Verbal change orders can be very costly, cause delays and create misunderstandings. (c)
Plan your project carefully to avoid unnecessary delays. Evaluating the Contract Your contract should be easily understood and
detailed. The contract should specify: (a) Quality and quantity of materials. (b) Styles and brand names of products. (c) A firm price for the work and a payment schedule and if there is a cancellation penalty. (d) Any
items of work that will not be performed by the contractor. Read
our contract carefully and ask questions! Toll-free Attorney
General Consumer Hotline: 1-800-441-2555
TDD# 2-800-382-4814 If you want legal
review, call your lawyer or call for an appointment with him or her. WARNING
SIGNS (a) You cannot verify the name, address (again, a street address not a P.O. Box only) and telephone number or credentials of the contractor. (b) Don’t be rushed. If the salesperson tries to pressure you (being pushy – “don’t worry just sign, you’ll love it”, etc.) into signing a contract by making unwritten promises using scare tactics, threats or intimidation. (c) Get a list of previous customers (their addresses and telephone numbers) who also had been offered special rates in exchange for advertising considerations. Call these people and ask them if they received the promised quality workmanship and the special rate. (d) The contractor does not give you the requested references or the references you contacted have some reservations, complaints or other less than positive comments about the contractor. (e) You are unable to verify that the contractor is properly insured. (f) If you still have questions or any reservations, call your
attorney before you sign the contract: LEGAL CONSIDERATIONS
(a) Never pay all of the contract price in advance. Suggested Payment Plan: 30% paid on day work begins 30% when ½ completed 30% upon commencement of final
1/3 of work 10%
Retainage – to be paid after you are satisfied that the work is completed as called for in the agreement. (b) Make certain that the work agreement is in writing, signed by all parties before work commences or money is given and keep a legible signed copy of the contract. (c) Have the contractor provides mechanic lien waivers for himself and any subcontractors (if a lien waiver has not been obtained and the subcontractor has not been paid by the contractor, a lien can be placed against your home). (d) Seek legal advice if you have any questions about your rights if the contractor breaches the agreement in any way – do not self-help based on what you think is right which could make you the breaching party and make you liable for damages. (e) Include a provision for payment or legal fee if you have to sue the contractor for breach of contract i.e. incomplete or poor work in addition to money damages caused by the breach. You may also want to
contact the Office of Attorney General Bureau
of Consumer Protection 14TH Floor,
Strawberry Square Harrisburg, PA 17120 1-800-441-2555 and the
Pennsylvania Builders Association; 600 North Twelfth Street; Lemoyne, PA 17043 1-800-692-7339
or call 1-800-692-7339, ext. 3016 for
the phone number of the The Pennsylvania
Attorney General’s Internet address is: http://www.attorneygeneral.gov Ó 2003 James
W. Pearson, Jr., All Rights Reserved FOR
ADDITIONAL INFORMATION CALL THE TOLL FREE HELP LINE 1-800-232-1477 E-mail: lawyer@lawwalk.com JAMES
W. PEARSON, JR. Chair of the Federal & State Credit Union Department & Coordinator of legal consultations under the Family Legal Care Plans offered to credit union members. |
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