THE ATTORNEY GENERAL'S HOME-IMPROVEMENT TIP SHEET

Every year, the National Association of Attorneys General lists home-improvement scams as one of the top-ten consumer problems. There are many pitfalls to be aware of when contemplating improvements to your home. Arkansas law does not require residential contractors to be licensed or bonded. Therefore, it is often difficult to check the reputation of a contractor. The best way to select a contractor is to ask for recommendations from family or friends. The most important thing to remember when making improvements to your home is to have a written, signed and properly executed contract before any work is begun on your home or property. In particular, make sure the following information is contained in the contract:

• Your name;

• The name, address, and telephone number of the builder or contractor;

• A complete and detailed description of the work to be done and the materials to be used;

• A provision requiring written approval for ANY changes;

• A statement that explains the builder's or contractor's guarantee on the work that he or she will perform;

• A starting date and even more importantly a completion date;

• A complete description of the cost of the job, full disclosure of the payment terms, and the financing costs;

• Your signature and the contractor's signature.

Under the Home Solicitation Sales Act, you have a three-day right to cancel the contract if the contract was signed in your home.Don’t allow the contractor to deliver materials, or begin work, during that period.

Be on the Lookout for:

• Out-of-town or unknown contractors or builders, especially those that solicit door-to-door.

• Contractors who use the term "special introductory offer," "limited-time offer," or who offer any discount to use your house as a "model home";

• Contractors who want a contract signed quickly;

• Contractors who want to discuss the price of the job later;

• Anyone who uses high-pressure tactics or makes you feel uncomfortable or pressured;

• A company that demands that you make full payment before the project is finished. Make sure that your contract calls for payment as the job progresses, or pay it upon completion of the project.

Check out contractors with the Better Business Bureau and the Attorney General’s Office.

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