FOR IMMEDIATE RELEASE
January 10, 2008
Attorney General Carter Cautions against Unscrupulous Contractors as North Central Indiana Recovers from Flood Damage
INDIANAPOLIS, IN – Indiana Attorney General Steve Carter encourages Hoosiers in North Central Indiana to be on guard against unscrupulous contractors following the recent flooding in the area. Con artists may come out of the woodwork to prey on those who have seen damage to their homes by offering assistance at outrageous prices or taking money and failing to complete the work.
“In the aftermath of flooding, people are typically anxious to get home improvements underway,” Attorney General Carter said. “However, take caution and research any unknown contractor who shows up at your doorstep wanting to help. A quick decision could end up costing you more in the long run if the contractor disappears or leaves you with a bigger mess than when he started.”
Here are some tips on how to find a reputable contractor:
- Take your time and don’t let a contractor rush your decision.
- Do research, know how much you can afford, and what needs to be done.
- Talk your friends and family about contractors they recommend.
- Opt for local, well-established contractors and don’t assume that an ad makes a contractor reliable.
- Be skeptical if a bid is too low or too high.
- Get bids in writing.
- Check with your city or county building department to determine the licensing requirements for your area and if the contractor you are considering is properly licensed, bonded and insured.
Indiana law requires home improvement contracts exceeding $150 to be in writing. (IC 35-43-6-4) Before signing the contract, make sure it includes the price of the job, a payment schedule, a detailed description of the work, an estimated start and completion date, the contractors name and address, and a name and telephone number of the person to contact if a problem arises as well as the contractor’s signature. Never pay for the entire project before the work begins. Do not pay more than 1/3 of the total cost as a down payment. Remaining payments should be tied to completion of specified amounts of work.
Don’t make the final payment to the contractor until you know that all subcontractors and/or suppliers have been paid. Get written proof of payment because subcontractors and suppliers may file a mechanics lien against your home if they haven’t been paid. Be sure to get a copy of warranties and keep all records related to your project. This includes the contract, change orders, warranties, and correspondence. These records are important particularly if you have a problem.
Consumers who have been a victim of home improvement fraud may file a complaint with the attorney general’s office by calling 1-800-382-5516 or by filing a complaint online at http://www.IndianaConsumer.com.
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