When it comes to hiring a contractor in New York State, it’s easy to feel the pressure to make a quick decision, especially if repairs or renovations are urgent. However, taking a few precautions can save you from costly mistakes and ensure you choose a reliable professional. According to the Office of the New York State Attorney General, here are some essential tips to help you navigate the process of hiring a contractor.
Watch Out for Scam Artists
Unfortunately, not every contractor has your best interests at heart. Some may even be outright scammers. Here’s how to protect yourself:
- Beware of unsolicited offers: Be cautious if someone shows up at your door uninvited, offering to perform home repairs. These individuals might be “storm chasers” who follow severe weather events to prey on vulnerable homeowners. They can be difficult to track down if their work is subpar or if issues arise later.
- Verify contact information: Ensure the contractor has a verifiable name, address, and contact number. A reputable business will have these readily available.
- Avoid high-pressure tactics: A legitimate contractor won’t push you to sign a contract or pay a deposit on the spot. If you feel pressured, it’s a red flag.
- Never pay a cash deposit upfront: Do not hand over money before signing a contract. This can lead to disputes or the contractor disappearing with your funds.
Do Your Homework Before Hiring
Before signing any contracts, it’s crucial to thoroughly research potential contractors. Here are some steps you should take:
- Check references: Ask the contractor for references and follow up by contacting them. Previous clients can provide valuable insights into the contractor’s reliability and work quality.
- Verify insurance: Ensure the contractor has valid insurance. This protects you in case of accidents or damage during the project.
- Consult the Better Business Bureau (BBB): Look up the contractor on the BBB website to check for any complaints or unresolved issues.
- Check with Local Trade Associations: Verify if the contractor holds membership with local trade associations like the Better Contractors Bureau (BCB) to ensure they are a Registered Professional.
- Search online for reviews: A quick online search can reveal if the contractor has a history of unsatisfactory work or disputes.
- Check for proper licensing: In New York, home-improvement contractors must be licensed in several counties, including New York City, Suffolk, Nassau, Westchester, Putnam, Rockland, and Buffalo. If work is being performed in those areas, verify with the municipality whether the contractor is licensed or registered in that area.
Understand the Legal Requirements
According to New York State law, consumers must receive a written contract for home-improvement work exceeding $500. This contract must include:
- Contractor’s details: Name, address, and telephone number.
- Project timeline: An estimated start and completion date, including any factors that might affect the timeline.
- Work and materials description: A clear description of the work to be done and the materials to be used, including specific details like make and model numbers, along with the agreed-upon price.
- Cancellation notice: A statement informing you of your right to cancel the contract within three business days, unless waived in writing due to an emergency.
- Escrow account information: A notice that all payments made before the completion of work must be placed in an escrow account, with details provided to you within five days.
Manage Payments Wisely
Financial arrangements are a critical aspect of your contract. To protect your interests:
- Negotiate a small deposit: If the contractor requires a deposit, try to keep it minimal.
- Set a payment schedule: Agree on a payment plan that aligns with the project milestones and stick to it.
- Ensure funds are secure: Contractors are required to place your deposit in an escrow account and notify you of where the funds are held or prove they have bond insurance.
Be a Smart Consumer
Throughout the contracting process, it’s important to stay vigilant and informed:
- Read all documents carefully: Never sign anything without thoroughly reviewing it. Be particularly cautious of documents with blanks or incomplete sections.
- Retain copies of signed documents: Keep a copy of any paperwork you sign for your records.
- Verify permit requirements: Ask your contractor if any permits are needed and confirm with your local building and codes office before starting work.
- Compare price quotes: Request estimates from multiple contractors, typically three, to ensure you’re getting a fair price.
Coordinate with Your Insurance Company
Before proceeding with any work beyond necessary repairs for safety or to prevent further damage, review your insurance policy and consult with your insurance company:
- Check coverage: Determine whether the proposed work is covered by your insurance policy.
- Obtain approval from your claims adjuster: Don’t start permanent or significant work until you have approval from your insurance adjuster.
- Ensure contractor collaboration: Confirm that your contractor is working with your claims adjuster to ensure the repairs meet the insurance company’s requirements for coverage.
By following these steps, you can hire a contractor with confidence, knowing you’ve taken the necessary precautions to protect yourself and your investment. These guidelines, as outlined by the Office of the New York State Attorney General, are designed to help you make informed decisions and avoid potential pitfalls in the contracting process.
In conclusion, our goal is to provide valuable insights and practical advice to keep you informed and equipped with the knowledge you need to care for your home effectively. Whether you’re looking to tackle a DIY project, learn more about home maintenance, or ensure your property is in its best condition, staying informed is crucial. If you have any questions or need further assistance, whether it’s home advice or scheduling a professional home inspection, please do not hesitate to reach out to us at Gunther Home Inspections. Call us today to learn more or to schedule an inspection.