The first lesson is knowing how to select a qualified, and HONEST, contractor. Avoiding problems with contractors in the first place is smarter and more cost effective than fixing the mistakes later. Homeowners who don't do their homework learn their lesson the hard way. The odds of getting your money back from a fraudulent, dishonest or unqualified contractor are slim. In fact, you will probably spend more money on a lawyer than you lost on your ill-fated project.

Dos & Don'ts
The following DOs and DON'Ts will start you off on the right foot and head off many problems before they begin.

Get Referrals
AHA-Plus members can call our contractor referral service for a list of pre-screened, pre-qualified tradespeople in their area: 1-800-282-7478. (Ask for extension AHA, and furnish your AHA membership number.) Friends, work associates or fellow church or club members are another good source for referrals.

Check References
Ask each contractor for both commercial and customer references so you can find out if he pays his/her supplier bills and has satisfied customers. Too many homeowners never follow up on the list of references provided by a contractor.

Check Qualifications
Call your local Consumer Protection Agency or Consumer Affairs office to find out what licenses, insurance and/or bonds may be required for a contractor to be in business. Confirm that the contractor's license, insurance and/or bonding is current. An expired or non-existent license or bond is a big warning flag. If that happens, keep looking! Any discrepancies between what a contractor says and what the record shows should not be taken lightly, even if he or she claims forgetfulness or laughs it off.

Develop a Short List
BEFORE you start requesting cost estimates, interview several contractors until you find three you feel comfortable with.

Don't Let Your Fingers Do the Walking.
Or assume the Yellow Pages is a good source for trustworthy contractors. Try 1-800-282-7478 instead.

Don't Forget the BBB
Or hire a contractor until you have placed a call to The Better Business Bureau to see if any complaints have been filed against the contractor or if any action is pending.

Don't Grab the Cheapest Deal
Don't automatically jump at the lowest estimate, especially if it is more than 20 percent lower than the other estimates you've received. "Low Ball" bids are a warning sign that the contractor may be in financial trouble and desperate to get your deposit money in order to complete a previous job. Extreme variation in bids also indicates an "apples and oranges" problem: differences in the scope of work or quality of materials and fixtures. Make sure you clearly specify what you want so everyone is bidding on the same thing.

AHA Contractor Referral Service
Finding and managing a reliable contractor for routine or emergency home repairs, home improvement projects, or other needs is a breeze for you as an AHA member through arrangements with national service provider associations across the country. Your AHA-Plus membership gives you unlimited access to pre-screened, pre-qualified tradespeople and contracting firms who can provide reputable and professional service. If you are not absolutely satisfied, however, with any repairs or improvements performed by our pre-screened service providers, AHA will intervene on your behalf. For referral to pre-screened service providers in your area, call 1-888-28-ASIST (282-7478), ask for extension AHA, and furnish your AHA membership number.

Copyright © 1998, AHA, the American Homeowners Association, Stamford, Connecticut, USA
All Rights Reserved
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