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Consumer Beware What recourse or resources do homeowners have once things
have gone sour with their contractor? Learn more
Hiring A Contractor? These Economic Times Pose Some Real "Hire Beware" Tips You Would Be Smart To Follow Before Signing On Any Dotted Lines!
October 23, 2009
If you are doing some remodeling, or any size interior or exterior work,
even repairing or rebuilding after storm damage, you would be wise to
heed some advice from the Minnesota Department of Labor and Industry. Be careful when entering into contracts with new contractors or companies you have never worked with before.
Besides following some smart steps prior to hiring a contractor, most especially before signing on the dotted line, you could end up saving yourself a lot of hassle and / or loss of money by ensuring that your contract includes certain important items. A higher than normal call volume into our call center recently from members and consumers in distress confirm this advice from the Minnesota Department Of Labor and Industry. The primary nature of the calls focus on homeowners who have run into trouble with contractors they have hired who have accepted down payments but are not delivering on the work promised.
While it is not certain exactly why this jump in call volume; there is speculation that some companies in this challenging economy mean well when they take your down payment, but might end up using some of it for unpaid bills. In certain scenarios, some contractors could be coming up short and unable to purchase needed supplies for your job. As you can guess, without the needed supplies to get started, the jobs are at a stand still. Often calls from the homeowner are not being returned leaving a perplexed homeowner, a frustrated and befrazzled contractor, and a stale mate to nowhere. As it would be difficult to predict this outcome in advance, exercising a little more caution beforehand should help. To be on the safe side for both you and your contractor, making sure your contracts include a few basic things is smart! See full list.
What recourse or resources do homeowners have in these situations?
Homeowners Can Take Another Safety Measure - Lien Waiver Protection
Subcontractors and suppliers hired for your projects can file a mechanic´s lien against your property if a contractor fails to pay their bills. A lien is a legal claim to a portion of your property. You can pay any subcontractor or supplier directly and deduct the amount from the contract price. You can also request a lien waiver, which relinquishes a supplier´s right to file that lien. In the absence of waivers, you can withhold payments to the contractor for 120 days after all work is completed. Get more details and information on this before you make your final hiring decisions or sign on any dotted lines. Contact the Minnesota Department of Labor and Industry at 651-284-5005 or 1-800-DIAL-DLI for more information.
Source: Star Tribune; Whistleblower; Sunday, October 25, 2009
Comment on this article: Please feel free to provide your feedback on this article. Your comments are welcome!
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