HOME IMPROVEMENT RIP-OFF'S

1. Unlicensed Contractors

It is not surprising that most of the home improvement complaints filed with the Department of Consumer Affairs are caused by unlicensed contractors. The laws regulating contractors in Florida have provisions requiring that persons must be certified or registered with appropriate regulatory authorities before engaging in business as contractors. These regulatory authorities can take administrative action against licensed contractors for, among other things, disregarding applicable building codes, diversion of funds received towards completion of a project, gross negligence, incompetence, or misconduct in the practice of contracting. This administrative action could include suspension or revocation of a contractor's license. These regulatory authorities cannot take action of this type against unlicensed contractors, and aggrieved consumers often find that their only recourse against an incompetent unlicensed contractor is a civil lawsuit. Since most of the unlicensed contractors go in and out of business at the drop of a hat, civil lawsuits are often a waste of time. Unlicensed contractors are responsible for a wide variety of consumer problems, including: shoddy workmanship, use of inferior materials, abandonment of project, and continual postponement of completion date.

2. Unpaid Subcontractors

Failure by a contractor to pay subcontractors or suppliers of building materials often leads to serious problems for consumers. Once a home improvement project has been completed, consumers usually pay the contractor in full for the work. If the contractor fails to pay all bills, subcontractors and material suppliers can, and in many cases do, place a lien on the consumer's real property!. Many consumers have had to pay twice for the same work. Inflation and tight money conditions often aggravate this problem.

3. Pre-performance Deposits

It is not unusual for home improvement contractors to require a deposit before they begin work on a home improvement project. Many consumers who pay large pre-performance deposits, however, find they have lost their money when the contractor goes out of business before beginning the job or, as in some cases, simply never bothers to start working.

4. Deception and Misrepresentation

There are many schemes that dishonest home improvement operators use to deceive consumers. The following are a few of the most prevalent:

• Tricking consumers into signing completion certificates before project is actually completed
• Falsely inducing consumers to contract for home improvement work by promising that the project will be used as a model or advertising lure and that the consumer will be compensated for referrals
• Obtaining signatures on contracts with important blanks not filled in--such as financing information, completion date, warranty information. etc.
• Underquoting the job and then increasing the price after beginning the work
• Substituting inferior materials
• Misrepresenting warranty coverage--small print describes important limitations to warranty
• False energy-saving claims
• Bait and switch advertising

DO'S AND DON'TS FOR HOME IMPROVEMENTS

• Do be wary of proposals that quote exceptionally low prices
• Do get a written contract that accurately describes the agreement
• Do have an attorney review all contracts and related documents (warranties, specifications, financing arrangements) before you sign
• Do check out all contractors who have submitted proposals with the Better Business Bureau and Pinellas County Construction Licensing Board before making a final selection
• Do make certain that all needed building permits and variances are obtained before project is started
• Do hold a sizable final payment until after the job has been completed and you have thoroughly inspected the work. Contractors are more cooperative in making needed corrections when the final payment has not yet been made
• Do get a contractor's affidavit that affirms that all subcontractors and material suppliers have been paid before making final payment
• Do insist that the contractor include a starting date and a construction completion date in the contract
• Do insist upon a written warranty on materials and workmanship which you can understand
• Don't sign a contract that contains any blank spaces
• Don't sign a completion certificate until all work has been completed and you have inspected it thoroughly
• Don't pay for the project in full before work is completed
• Don't give an exceptionally large deposit before the beginning of work
• Do report any deception or misrepresentations, shoddy workmanship, failure to honor contracts, unlicensed contractors, or other problems to the Pinellas County Construction Licensing Board and/or the Pinellas County Department of Consumer Affairs