Don't Make a Costly Mistake

Purchasing home improvement services is unlike most other buying decisions you will make, and most homeowners have limited experience in this area. To make a wise decision, homeowners need to ask the right questions of their contractor. No company is going to come out and tell you that they are not insured, subcontract to unskilled labor, use cheap products, have a poor record of customer service, or have previously gone out of business and reopened under a new name.

Here are some facts about home improvement industry you should know:

• According to the National Association of Consumer Agency Administrators, complains against home improvement contractors are second highest in the nation.
• High business failure rates; 40% of contractors will fail the first year; 70% by the fifth year, and only 6% survive to reach their 10th anniversary. This leaves their customers with worthless warranties.
• In a July 2005 Qualified Remodeler survey, 48% of consumers who hired a contractor would not hire the same one again.

As you see, choosing the right contractor can be quite a challenge. Here are some recommendations from the Better Business Bureau (BBB) and Consumer Action Center to screen prospective contractors.

• Contact your local BBB to learn how long the contractor has been in business and if the firm has any unresolved complaints.
• Find out if the contractor is a member of a professional association which has a code of ethics, such as the Home Improvement Council.
• Insist upon a written contract to include details of work to be performed, materials, price, contact information, timetable, payment schedule, warranty, and three day right to cancel clause (signed in your home).
• Be certain your contractor is insured.
• Get references and recommendations.