Rebuilding and Repairing Your Home After a Natural Disaster
As your community begins the recovery after the devastating effects of the Palisade Fire, local home builders are warning residents to be aware of scammers that may pose as legitimate contractors. The Building Industry Association of Southern California (BIASC) encourages all residents to research contractors to avoid paying for substandard home repairs.
The following is a list of things to remember when hiring a professional contractor. Always do your homework and proceed with care.
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- Ask for proof of a current license from the [California State Contractors Board: 800-321-2752 or website: www.cslb.ca.gov]
- Ask for proof of general liability and workman’s compensation insurance. A reputable contractor should be able to show you an insurance certificate, and expect you to ask for it. Typical contact is that we would tell you to contact his insurance carrier and have a copy of the certificate sent directly from the agency, however, this may not be realistic during this time of disaster.
- In the City of Pacific Palisades, Malibu, Topanga and the surrounding counties, jobs should always be permitted and inspected. You should check with the inspection department in your area for complete information or fees are currently required.
- Ask for references and check those
- Check with the Better Business Bureau for any history of unsatisfied
- Verify the company’s permanent business address is in this area and not from out of
- If you get more than one bid, be sure you read through the estimates and are comparing similar scopes of work with comparable materials and labor
- You should understand your contract and warranties that the builder will provide for the work performed. The contract should outline the scope of the work, the price, and at what points of completion payment is
- Be wary of low bids – lowest bid is not always the
- Be wary of a contractor who wants full or cash payments before the job begins and utilizes high pressure sales tactics to sign a contract.
Visit the Building Industry Association of Southern California (BIASC) website, www.biasc.org for more information and for a complete listing of builders and subcontractors. The office can also be reached at (949) 553-9500.
Don’t Get Scammed: Find A Qualified Contractor
There are thousands of legitimate, ethical contractors in business around the country. Unfortunately, there are also scam artists looking to cheat you out of your money who pose as legitimate contractors. These “fly-by-night” operators often show up in communities impacted by natural disasters to try to scam distressed home owners into paying for shoddy repairs or work that they will never show up to perform.
Here are some warning signs to look out for:
All professional contractors should be insured and able to show their certificate proving such insurance. Although all states do not require licensing, contractors in states requiring licenses should have it and be able to provide a copy.
If they want you to sign an “estimate” or “authorization” before you’ve made the decision to hire the contractor, look out. They may be trying to get you to sign what is an actual binding contract.
Professionals have clear contracts that outline the job, process, the cost, and helps clarify how problems will be managed. If you don’t have a contract, you are not protected when something goes wrong. Don’t hire anyone who tells you a contract “won’t be necessary.”
Shady contractors demand cash and then run with the money. Many home owners have been stranded by paying in full up front. A deposit towards materials is common, but only pay it once you have a contract signed by both you and the contractor. It’s also suspect you’re asked to pay cash to a salesperson instead of a check or money order to a company.
They may have the best price, but that doesn’t guarantee the best work. Such contractors may cut costs on quality, which can end up costing you more when you have to have the substandard work redone.
If you’re told you’ve been “chosen” as a demonstration project at a special, low price, or you’re told a low price is good only if you sign a contract today.
Professional contractors should have current references they can provide from current and past clients — and you should be able to reach those references, not just an answering machine.
Professionals have a physical office, mailing address, phone, and email. They should respond to your queries in a timely manner. Make sure you can verify the contractor’s business address. If they only have a p.o. box, be wary.
Professional contractors go to the county or state offices and get permits for their work themselves. Asking the home owner to do it is a sign that they are not a legitimate contractor.
Your best bet is to take your time, do your research and choose someone you feel completely comfortable with. If your state requires contractors to be licensed, look them up on the state licensing website even if you’ve seen a piece of paper that looks like a license. Make sure they don’t have a record of consumer complaints lodged with your local Better Business Bureau. You can also find your local home builders association and contact them for a list of reputable contractors in your area. Search NAHB’s Directory of Professional Remodelers to find a NAHB Remodelers member in your community.