Construction and Home Improvement Scams
Consumer Guide for Older Virginians
Older Virginians are particularly vulnerable to construction scams because so many own their own homes but cannot do their own repairs. Your home is likely to be your most valuable financial asset – that´s why you must be extra careful when you hire someone to work on it.
Tips for Hiring a Contractor
- Deal with a licensed contractor who meets state requirements for expertise and performance. By hiring a licensed contractor, you make yourself eligible for monetary relief from the Contractors Transaction Recovery Fund in case of improper and dishonest conduct. You can check license status and any disciplinary actions taken since January 2002 for a Contractor by clicking here, or call the Contractors Board at (804) 367-8511.
- Ask friends and neighbors for contractor referrals. An advertisement in the Yellow Pages or on TV isn´t necessarily a good indication of the quality of a contractor´s work.
- Get written estimates from several contractors. Don´t automatically choose the lowest bidder – ask for explanations on price variations among proposals.
- Insist on a detailed contract, including agreed-upon start and finish dates. Licensed contractors are required by law to provide a contract for residential work. Don´t rely on verbal agreements – get all guarantees, warranties, and promises in writing.
- Don´t pay 100% of the bill until the work is 100% complete. Try to limit your down payment – a reputable contractor should be able to front the costs of supplies without a large sum of money from you. A deposit of one-third (30%) of the total cost is a good rule of thumb. Try to make payments during the project contingent upon completion of certain tasks – that way, if the contractor is behind schedule your payments are delayed.
Tip-Offs to Potential Rip-Offs
Not all contractors operate within the law. Unlicensed contractors often target older Virginians – and that´s a crime.
Here are some warning signs. Watch out for scams or an unlicensed contractor who:
- Solicits door-to-door
- Just happens to have materials left over from a previous job
- Pressures you into making an immediate decision
- Asks you to pay for the entire job up-front
- Only accepts cash payments
- Asks you to obtain required building permits
- Doesn't list a business number in the local phone book
