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One of the most difficult choices flood victims will have to make is picking a contractor to help them repair or rebuild flooded homes and businesses. Unfortunately, not all contractors are honest, and some see events like the great flood of 2016 as an opportunity to cash in. Fraudulent contractors can take advantage of customers if they aren’t careful, so be prepared to take extra precautionary steps if you plan on hiring one. The Louisiana Attorney General’s Office offers these tips to help customers ward off unscrupulous contractors.
1. Avoid large down payments. If the contractor you’re looking into asks for a down payment larger than 25% of the total cost, don’t agree to the deal. A reputable contractor won’t ask for a down payment of more than 10% to 25% of the cost.
2. Verify the contractor’s address. Make sure the contractor has an established business operation. In addition, ask for references from previous customers, and inspect the work done for those customers, if you can.
3. Check the materials. Accompany your contractor to the building supply store, if possible. Have the materials delivered directly to your home or jobsite rather than the contractor’s shop.
4. Get a written contract. Having a written, signed contract before you start will save some headaches. Keep a signed, legible copy of the contract in a safe place. You never know when you’ll need to reference it.
5. Demand insurance. Always require the contractor to show proof of insurance, and call their insurer to confirm that they have coverage—don’t just take the contractor at their word.
6. Find three bids. Get at least three itemized and detailed bids from contractors. The more bids you can choose from, the better. And make sure each contractor bids on exactly the same work.
7. Confirm their license. Make sure the contractor is licensed through the Louisiana State Licensing Board for Contractors. You can verify information at the board’s database at www.lslbc.louisiana.gov, where you can search by contractor name, type, license number or parish of business.
8. Take photos. Take a picture of your contractor, their vehicle and its license plate, as well as their business card and their driver’s license. Also take photos of their contracting license, insurance information, the contract you signed with them, and all checks and money orders sent to the contractor. Preserve these photos in a safe place, possibly in a computer cloud. A reputable contractor will be ready and willing to be photographed.
