Home Improvement and Repair Contractors -
Homeowner Protection and the Law
What is a Home Improvement contractor?
Home improvement contractors are involved in repairs, renovation, installation, replacing, improving, restoring, painting, constructing, remodeling, moving, or demolishing residential or non-commercial properties. They can work on many aspects of the home such as residential driveways and sidewalks, swimming pools, patios, landscaping, fencing, porches, windows and doors, kitchens, bathrooms, garages, basements, fire protection devices, security protection devices, central heating and air conditioning equipment, water softeners, heaters, and/or purifiers, insulation installations, roofing and siding, and wall-to-wall carpeting or attached or inlaid floor coverings.
How can you Protect yourself and your home?
Know the facts!
Every day consumers hire contractors to do work on their homes, sometimes rather costly, and are less than satisfied with the results. This, at times, may lead a consumer to being stuck with sloppy repairs, unfinished improvements, or simply out of money due to a contractor's failure to start the project at all after you have given them a deposit. However, there is help.
The New Jersey Consumer Fraud Act protects you from:
- Misrepresentation by a contractor
- Omissions as well as fraud and deception, in consumer transactions
- Requiring a contractor to be registered
- Requiring a written contract for home improvements projects over $500.00
- Requiring the beginning and ending date of the contract along with a description of the workede to be done and the total price
- Requiring the contractor list his name, address and registration number
- Requiring thecontractor provide you with a copy of his commercial general liability insurance policy number and the telephone number of the insurance agent.
Make sure you read everything you sign! Be cautious. A contractor may ask you to sign a statement that says you will cover the costs of materials and labor if the contractor does not pay. Before you sign a contract, ask for a lien waiver which is a receipt that states that the workers and material suppliers will not ask you for money once you have paid the contractor.
A consumer, for any reason, may cancel certain signed contracts before midnight of the third business day after you receive a copy of the contract. Put the cancellation in writing and either personally deliver it to the contractor, or send it registered or certified mail, return receipt requested.
What should I be on the lookout for?
Be wary and look for red flags when hiring a contractor. Be suspicious if the contractor:
- Is not registered with the New Jersey Division of Consumer Affairs
- Asks for more than a third of the total payment before work can begin and/or demands cash
- Tells you that there is no need for a written contract
- Approaches you door-to-door or seeks you out claiming he/she can give you a good deal
- Quotes prices out of line with other estimates
- Pressures you for an immediate decision
- Offers an unusually long guarantee/warranty
Suggestions for Hiring a Contractor from the Division of Consumer Affairs:
- Obtain recommendations from friends, family or other acquaintances. They can verify the work done by contractors they have used.
- Contact Consumer Affairs to ensure that the contractor is registered and to see if consumers have filed any complaints against the contractor. You can visit the New Jersey Division of Consumer affairs online.
- Get written estimates from a LEAST three contractors and make meaningful comparisons.
- Ask for references. Contact the references your contractor gives you. Some questions to ask are whether the job was completed on time, if there were unexpected costs, if the workers showed up on time and cleaned up after themselves, and whether or not the person would use the contractor again.
- Insist on a written contract. Do not allow any work to be done until you know all the details.
- Do not pay for the entire job up front. The Department of Consumer Affairs recommends one-third in advance, one-third halfway through the job, and one-third upon completion. Never pay with cash.
- Investigate and know your payment options. Shop for credit, compare your own loan versus contractor financing. The annual percentage rate can make a major difference in cost.
- Make sure the contractor obtains the proper permits and know the inspection requirements of your local building inspection department.
- Do not make a final payment or sign a final release until you are satisfied with the work and verify that all subcontractors (if used) and suppliers have been paid.
