As summer approaches, Jersey shore town like Margate City are seeing an increase in renovation permit applications.
How can you protect yourself from scams and sloppy practices when hiring home improvement contractors?
Listen:
Common Scams and Issues to Avoid.
Consumers in Ventnor, Margate and Brigantine often complain about how some contractors provide shoddy workmanship, missing deadlines, or they fail to start or complete the work after taking a deposit.
Spot a Scam (Warning Signs) Be very wary if contractor exhibits any of the following red flags:
- Approaches unsolicited: They claim they were “just in the neighborhood” and can offer you a good deal.
- Demands excessive upfront payment: Be cautious if they ask for more than a third of total payment before the work even begins.
- Demands cash: Never pay for home improvements with cash.
- Refuses a written contract: Contracts are legally required for projects costing more than $500.
- Lacks proper identification: Be wary if they only use a P.O. Box for their business address or do not have a Division of Consumer Affairs registration number.
- Tries to shift financial liability: Avoid contractors who ask you to sign a statement making you responsible for the costs of materials and labor if the contractor fails to pay their suppliers.
- Demands final payment early: It is against the law for a contractor to demand final payment before the home improvement project is fully completed.
How to Deal With It (Prevention and Resolution)
- Do research beforehand: Contact Consumer Affairs to check if the contractor is registered and if there are any complaints against them. Get written estimates from at least three different contractors. Ask about their insurance and whether they use subcontractors.
- Everything in writing: Ensure you have a written contract detailing the start and completion dates, a description of the work, total price, and their registration number. Ensure all warranties and guarantees are put in writing.
- Ask for lien waiver: Before signing a contract, request a receipt stating that the workers and material suppliers will not ask you for money once you have paid the contractor.
- Know cancellation rights: You can cancel a signed contract for any reason before midnight of the third business day after receiving a copy. The cancellation must be in writing and delivered personally, or sent via registered/certified mail.
- Withhold final payment until end: Ensure that all applicable construction permits are obtained and that final inspections are completed before you make your final payment to the contractor.
- Filing a complaint: If you encounter a problem, first try to give the contractor an opportunity to resolve the issue directly. If that fails, you can file a complaint with the New Jersey Division of Consumer Affairs online at www.NJConsumerAffairs.gov, call 1-800-242-5846 to request a form, or contact your county or municipal consumer affairs office.
- Make sure you have noted the contractor’s registration number, name, street address, phone number, license plate number, and vehicle description, as this will help law enforcement.
