Thursday, August 20, 2009

Home Repair

“The process of competitively selecting contractors to perform work is based on a system of rewards and penalties, all distributed randomly.” - Norman R. Augustine

Home repairs are always a hassle. We have two leaky showers that we’ve been ignoring because we don’t want to deal with the cost and mess of ripping open walls and ceilings to repair them.

Often the hardest part of home repair is finding an honest and talented contractor. Here word of mouth is valuable. Ask your neighbors whom they used and liked.

Here are some tips on how to Avoid Being Scammed By Shady Contractors from the Consumerist.com. Warning signs of a bad or shady contractor include:

  • Uninvited Visits – good contractors are too busy doing real work to knock on your door to gin up business.

  • Evasive Answers: Make sure the contractor answers ALL your questions with real dates and real dollars and real materials.

  • Paid under the table: be very wary if the contractor wants you to make a check out to him or to cash instead of a company.

  • Out of State Plates/Lapsed License: make sure the contractor is licensed and insured in your state.

  • Pushy Deadlines: Good contractors don't need to cut special deals or offer prices only good today.

  • Selected References: ask for references from the last three jobs (and confirm the dates). Otherwise you are only hearing from the most satisfied customers that the contractor selects.

  • Blank Contract: we were shocked when a car dealer wanted us to sign a blank form. Do they think we are stupid?

  • Shady Financing: do your own financing loan. Do not trust the contractor to get you the best loan terms.

  • Demands full payment up front: you will have to pay something for materials upfront but never pay the whole bill until the job is done and you are satisfied.

Bottom Line

Contractor horror stories are a dime a dozen. Never negotiate alone. If you don’t have a spouse (or your spouse is lame at salesmanship), ask a friend to be with you when talking to a contractor and negotiating the deal.

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