Choosing the right contractor for your job can often be
confusing. With so many so-called "contractors" in the industry, there is a
lot of room for scam-artists. The best way to avoid being scammed is to
do your research.

"Gypsy Contractors" are one segment of the industry
which are responsible for millions of dollars in fraud every year.

Gypsies are people who travel the country soliciting work door-to-door. They
contract to do work such as concrete repair, roof repair, siding,
windows, etc., accept deposits and never do the work. Or, they do the work,
but it is done without pulling permits and the workmanship is shoddy.

Gypsies stay in an area for a brief period of time and leave after stealing
thousands of dollars from local homeowners. It's hard to discern a
"gypsy contractor" from a legitimate contractor because they often drive
brand-new vehicles, courtesy of stolen money and they dress well. By the
time homeowners realize they've been ripped-off, the Gypsies are !
nowhere to be found. Victims of natural disasters are often
re-victimized by these types of con-artists.

Homeowners should also beware of new or start-up contractors who have not established themselves in the
marketplace. Start-up companies are often encumbered by debt and are
living from job-to-job. Many are unregistered or unlicensed. In most cases,
they fail to carry the necessary insurance required by building
departments. If someone gets hurt on the job, and if the contractor is
uninsured, homeowners can be held personally liable for hospital bills and
workman's compensation claims.

Beware of anyone soliciting work
door-to-door in your neighborhood. Always check references. Verify insurance by
calling the insurance company or the local regional building department.
Contractors are required to keep a copy of their policy on file with
the building department and, if their insurance lapses, the insurance
company will notify them of the change in status. Your best insuranc!
e against being ripped-off is to do business with an established compa
ny in your area....in your own town.

If you have an established
contractor in your town which specializes in the work you are seeking to have
done to your home, you should use them for your work. Try to avoid
doing business with out-of-town contractors, even if their prices are
lower. If you have a warranty with your work and ever need to file a
warranty claim, you'll have better success in getting the local company to
your home than you will with an out-of-town contractor.

Check with the
local Better Business Bureau, other homeowners which have done business
with the contractor you are interviewing and never, ever sign a contract
on their first visit. Take the time you need to do your research. These
steps may not always ensure your safety, but it will considerably
reduce your risk in being a victim of economic crime.

Learn more about this author, Chip Peters.
Click here to send this author comments or questions.

---

Add your voice

Know something about How to find a good general contractor?
We want to hear your view. Write now!