Tennesseans starting to rebuild homes and businesses damaged in the severe storms and tornadoes on Feb. 5-6 are advised to be careful when hiring contractors.
The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) and the Tennessee Emergency Management Agency (TEMA) are working to ensure that residents have the assistance they need for the disaster recovery.
Consumers who need repair work done quickly following a natural disaster are sometimes targets of unscrupulous business practices. Although neither the state nor FEMA recommends contractors, officials encourage citizens to take the time to evaluate the bidder before contracting for the job.
"Homeowners should look for a contractor with a proven track record who readily offers client references," Federal Coordinating Officer Gracia Szczech said.
By hiring licensed and insured contractors, consumers avoid a lot of problems. TEMA Director James Bassham also urged anyone affected by the disaster to be cautious.
"Most service providers in the building industry are honest, but it's sad to say that disasters sometimes attract scam artists," Bassham said.
Tennesseans can call the state Consumer Affairs Division at (800) 342-8385 or (615) 741-4737 to check the "Problem Contractor List." Information also is available online at http://www.state.tn.us/consumer/.
General tips for hiring contractors include:
- 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.
- 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 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 pay for all materials and 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.
- Get guarantees in writing. Any guarantees made by the contractor should be written into the contract. The guarantee should clearly state what is guaranteed, who is responsible for the guarantee and how long the guarantee is valid.
- Obtain a local building permit, if required. Permits may be required for site work other than demolition and for reconstruction. Contact your local government for permit information.
- Make final payments only after the work is completed. Do not sign completion papers or make the final payment until the work is completed 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.
» More Information on Tennessee Severe Storms, Tornadoes, Straight-line Winds, and Flooding
