• How to hire a builder or remodeler
• How to protect yourself from fraudulent and unlicensed contractors
• What criteria to look for and what question to ask
• Remedies for home repair fraud victims
• What you should know before you hire a contractor
• How to file a consumer complaint (pdf form available for download)

Do you really want to hire an unlicensed builder?

How to Hire a Builder or Remodeler

Having you own home is the American dream. It is your own little corner of the universe. Don’t trust its construction or remodeling to just anybody. As much time and attention should be spent interviewing and researching a prospective builder or remodeler as would be spent searching for a home or automobile or employee. As a consumer you have the right to ask certain questions and request certain pieces of information. With the remodeling industry exceeding $118 billion spent during 1997, you can tell that there is a lot of remodeling that goes on all over the United States. Every year thousands of Alabama citizens remodel and repair their homes. While most residential contractors operate honest businesses, the number one complaint filed with the Attorney General’s Consumer Affairs Division is regarding home repair fraud. There are important steps that consumers can take to protect themselves before ever hiring a remodeler. Don’t be afraid to ask certain questions or to request references. Any remodeler running an ethical business will not be offended by your inquiries about licensing, insurance and references. Below you will see a bulleted list of information that should be obtained when you are in the process of hiring a builder or a remodeler.

Whether you are making minor repairs, adding an addition to your home or building a new home, arm yourself with the information necessary to choose the right contractor.

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• Verify the contractor’s name, address and phone number. Be wary of workers who give you pager numbers rather than landline phone numbers, or post office boxes rather than street addresses.

• Request references on similar work performed by the contractor. Ask to see a job in progress, and ask for the name and number of a customer who had work done over a year ago.

• Obtain two or three bids. When comparing estimates, be sure each one is based upon the same set of plans, specifications, and scope of work.

• Check with professional associations and licensing boards (see listing below) to verify the worker’s records. Ask to see the contractor’s pocket sized license card shown below.

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• Ask to see proof of workman’s compensation insurance coverage (when applicable) and liability insurance.

• Agree on finance charges and a payment schedule.

• Make sure you have guarantees and warranties in writing.

• Agree on start dates and finish dates for the project. Have these dates written into the contract.

• Make sure the contract is specific, including details about, materials, colors, brands and models.

Many fraudulent home repair workers will try to hook you into using their services by convincing you they can give you a once-in-a-lifetime deal. Remember, most professionals do not solicit business door-to-door, and do not require large payment up front. Below are some of the lines commonly used by scam artists:

• "I just finished another job in the neighborhood and am trying to get rid of this extra material."

• "The price I’m quoting you is very low because we plan to use your home as a demonstration model."

• "You will have to pay me in cash since I’m giving you such a great deal."

• "This offer is good today only."

• "Don’t tell anyone else about our deal. I’ve charged others a lot more for the same type of work."

• "I’ll have to have all (or half) the money up front."

• "I will need some additional money to order more supplies before I can finish the job."

• "You need to have this work done immediately. You don’t have time to think about it."

• "The price of the materials will go up tomorrow."

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Remedies for home repair fraud victims

If this information has reached you too late and you or someone you know has already been the victim of home repair fraud, there are some remedies available to you. The following numbers will get you in touch with different agencies that can assist you with your claim:

Alabama Home Builders Licensure Board

• 1.800.304.0853

Alabama Attorney General’s Consumer Hotline

• http://www.ago.state.al.us/consumer.cfm
• 1.800.392.5658

• 1.800.745.4222

Better Business Bureau

• 1.800.824.5274

The Home Builders Licensure Board can take disciplinary actions against builders who are licensed and commit fraud against consumers. The fraud must be proven through an investigation.

The Attorney General’s Consumer Affairs Division will investigate claims of home repair fraud and, if enough evidence exists, will prosecute individuals.

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What you should know before you hire a contractor

Don’t get nailed by an unlicensed contractor. Before you hire a contractor or sign a contract for more than $10,000, call the Home Builders Licensure Board at 1-800-304-0853. You can do more to protect yourself before hiring a contractor than the Home Builders Licensure Board can do to help after you have been harmed.

The Do’s and Don'ts of Hiring a Contractor

Do be aware that consumers have been targeted by scam artists posing as contractors.

Don’t be a victim!

Do deal only with licensed contractors.

Don’t hesitate to ask to see the home builder’s "Pocket License" card. All licensed home builders and remodelers are issued pocket license cards which show that they are state licensed and the expiration date of the license. Ask to see additional identification so that you know who you are dealing with.

Do call the Home Builders Licensure Board to verify the information provided by a contractor at 1-800-304-0853.

Don’t rush into repairs or hire the first contractor that comes along, no matter how badly you need them.

Do explore the market and ask for references of work the contractor has completed in the local area.

Don’t hesitate to check references. This takes time, but saves money and aggravation in the long run.

Do require a written contract with the contractor’s license number on it. Remember, if it is in the contract, you can expect to have it done. If it is not there, even with a verbal promise, you may not get what you think you are paying for.

Don’t sign until you fully understand the terms of the contract.

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How to File a Consumer Complaint

The Home Builders Licensure Board was created to protect the public from unqualified, incompetent and dishonest home building contractors and remodelers who provide inadequate, unsafe or inferior building services. The Board established a recovery fund from which an aggrieved party may recover up to $20,000 as the direct result of the conduct of a licensee in violation of the home builders licensure law. The Board may also revoke or suspend the license of any licensee who has committed fraud or deceit in obtaining a required license or who has been guilty of gross negligence, incompetence, or misconduct in the practice of residential home building.

NOTE: The following file requires Adobe Acrobat Reader to view. See inset directly below for information on the Adobe PDF file format.

CONSUMER COMPLAINT FORM (click to download form) Download the consumer complaint form and return completed form to the Home Builders Licensure Board, 445 Herron Street, Montgomery, Alabama 36130-3605.

The Board must receive original, signed and notarized form before processing consumer complaint. For further information, call the Home Builders Licensure Board’s office of compliance and consumer affairs at 1-800-304-0853.