SunHerald.com : Repair fraud arrests total 87

SunHerald.com : Repair fraud arrests total 87: "Eleven men have recently been rounded up on felony home-repair fraud charges, bringing total arrests to 87 in Mississippi since Hurricane Katrina.

Two others were arrested in misdemeanor fraud cases involving less than $5,000.

Another 50 to 60 cases are being mediated for completion of repairs, Attorney General Jim Hood said Wednesday during a press conference in Biloxi."

From the Mississippi Attorney General's office - the following are offered as guidelines for hiring a contractor to repair or remodel your home. Unfortunately, following a massive natural disaster, fatigue and desperation can lead to being much less diligent in this process. This is precisely why fraudulent "contractors" will prowl disaster areas for potential victims.

• Get at least three estimates (bids). Be certain each contractor bids on exactly the same work. ALL bids should be itemized and detailed.
• Know with whom you are dealing and verify the contractor’s address. Request and check references (previous customers, bank references). Inspect work done for others when possible. Make sure the contractor is licensed through the Mississippi Board of Contractors (1-800-880-6161) If he/she is not licensed, do not do business with him/her.
  
• Get the name of the contractor’s insurer and bonding company. Call the bonding company and verify that the contractor is insured and for what amount.
• A reputable contractor can usually charge building materials and does not normally require a large down payment. Where one is required, it should not exceed 10%-25% of the total price. Better yet, accompany the contractor to the building supply store and pay the store for materials yourself. Have the materials delivered to your job site rather than the contractor’s shop.
• Be specific. Have samples, model numbers, pictures or anything else that will show the contractor exactly what you want. If you don’t specify the quality of materials in the contract, you are leaving it up to the contractor to decide what material will be used.
• Be certain the materials you have selected are what you want. Changing your mind in the middle of a construction project is costly. If you do change your mind, be prepared to pay more.
• Get a guarantee in writing. Any contractor not willing to guarantee his/her work is not someone with whom you should be doing business. Accept no verbal agreements. Any changes in the contract should be in writing and initialed by both parties.
• Specify in the contract a beginning and completion date, exact description of work to be done, total cost of job, exact schedule for payment and warranty or guarantee that can be expected. (If contract is for an hourly rate or on a cost plus basis, get an estimate of the total cost.)
• Always pay by check or money order and keep a receipt. Write all checks to the company, not the individual worker. Make sure all subcontractors are paid to prevent a lien from being placed against your property.
• Keep a signed, legible copy of the contract in a safe place.
• DO NOT sign a certificate of completion or make final payment until you are satisfied with all work performed. Save copies of all material receipts so you can be sure you received goods and services for which you paid.