Tips for the Informed Homeowner

Hiring a contractor for work is a very important decision to make, and one that must be made with confidence. Being informed by educating yourself about knowing what to ask, how to ask it, and listening to the responses to your questions will give you good basis to start with.

Selection process questions:

• Check with Consumer Affairs to see if there are any complaints filed against the contractor and to validate the contractors registration
• Get a written estimate/proposal
• Ask for references of recent work. Check them out, and ask if the work was completed on time, whether there were any unexpected costs, did they show up on time and clean up when finished? Would they use the contractor again?
• DO NOT PAY FOR ENTIRE JOB UPFRONT. Most contractors will work out a payment structure dependent on the scope of the job.

Once you have decided to hire a contractor you should:

• Obtain a written contract. All home improvement contracts costing $500.00 or more must be written and include the legal name of the business, address of contractor, scope of work, contractors registration number (NJHIC #), and total cost of job.
• Get a copy of their liability insurance certificate (NJ requires minimum of $500,000 liability), copy (or proof) of their registration with the NJ office of the Attorney General Division of Consumer Affairs
• Any and all warranties and guarantees in writing, contract states name brands or quality/grades of materials to be used
• You may ask for a lien waver to be presented upon completion of job. A lien waver is a document/receipt that no one will be able to seek payment from you once job is completed and paid in full. No workers, material suppliers, subcontractors, etc. that were on the job can demand payment from you.
• Signed contracts may be cancelled by consumer for any reason before midnight of the third business day after you receive a copy of the contract. Cancellation notice must be in writing and either personally delivered to contractor, or sent via mail, registered or certified, return receipt requested.
• Ensure that if a permit is required that contractor has applied for them. Fees may be paid for separately by consumer, so long as it’s stipulated on your contract. If you apply for permit yourself, provide the contractors name and license number in the application.

Some WARNING signs to watch for:

• If asked for more than a third of the total payment as a deposit before work begins;
• Demands cash
• You are told that you don’t need a written contract, a verbal or handshake is all;
• Only has a P.O. Box as their address
• Does NOT have a Division of Consumer Affairs registration number (unless exempt)
• That you can apply for the permit, and state that YOU are performing the work yourself when in fact you are using a contractor. You may be forfeiting the protections afforded you by law should a problem or dispute arise

Information compiled in part from NJ Division of Consumer affairs www.njconsumeraffairs.gov