Unscrupulous Indiana Contractors May Take Advantage of Storm Damage by Victimizing Hoosiers

August 20, 2007 -- INDIANAPOLIS, IN – Indiana Attorney General Steve Carter encourages Hoosiers to be on guard against unscrupulous contractors if they engage in home improvements as a result of recent summer storms. 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.

“While most contractors are honest and skilled workers, deceitful people may try to capitalize on damage caused by spring storms,” Attorney General Carter said. “It’s important to ask friends and family for recommendations of reputable contractors and never feel pressured to make on the spot decisions as a result of a solicitation. Don’t be pressured or pushed into giving work to someone who shows up on your doorstep.”

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Below are some consumer 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.

In 2006, the attorney general pursued legal action against 31 home improvement contractors.

Consumers who believe they may 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.

Source: Indiana Attorney General