20 percent involve disputes between homeowners and home repair contractors. Homeowners can protect

themselves by following some important rules and asking the right questions.

Common Home Repair Scams

Complaints received by the Office of the Illinois Attorney General demonstrate that unscrupulous home

repair contractors use some common techniques to gain the confidence of homeowners. Unscrupulous

contractors might tell you they have "leftovers" from a larger job and can do the repair work for you at a

discount. They might attempt to frighten you by claiming that your house contains health hazards or code

violations that must be fixed right away. They might claim to be a representative of your insurance

company in an attempt to get you to agree to work they say your insurance policy will pay for. You might

left over from another job;

• quotes a price that’s out of line with other estimates;

• offers to drive you to your bank to withdraw funds to pay for his or her work;

• can be reached only by leaving messages with an answering service;

• drives an unmarked vehicle or has out-of-state license plates; or

• asks you to pay for the entire job up front.

Before You Start Your Project

You should always complete two basic steps before contracting for any home repair or home

improvement project: 1) determine the scope of work to be done and 2) set specifications for the job.

subcontractors, and suppliers. Your list of specifications can include anything about the project that is

important to you and can serve as a reference for you when you interview contractors. If you think

and Construction:

What You Should Know

through the scope and specifications of the project ahead of time and put your expectations in writing,

you can show a contractor what you need clearly and quickly.

Finding a Contractor

firms—but don’t automatically choose the lowest bidder. There are other factors besides cost to consider.

The following is a list of the basic steps for choosing a contractor or home repair company:

• Check contractor complaint records with the Illinois Attorney General and the Better Business

Bureau.

• Get recommendations and references. Talk to friends, family, and other people for whom the

contractor has done similar work.

• Get at least three written estimates from contractors who have come to your home to evaluate

what needs to be done. Be sure the estimates are based on the same work so that you can make

meaningful comparisons.

compensation insurance for his or her workers and subcontractors. Get copies of the contractor’s

proof of insurance. Also check with your insurance company to find out if you are covered for

of local business addresses.

• Insist on a complete written contract. Know exactly what work will be done, the quality of the

materials that will be used, warranties, timetables, the total price of the job, and the schedule of

payments.

• Ask the contractor if subcontractors will be used on the project. If yes, ask to meet them, and

make sure they have current insurance coverage and licenses. Also ask them if this contractor has

paid them on time in the past. A "mechanic’s lien" could be placed on your home if your

contractor fails to pay the subcontractors and suppliers who worked on or provided materials for

your project, even if you have fully paid the contractor. This means the subcontractors and

suppliers could go to court to force you to sell your home to satisfy their unpaid bills from your

• May I visit your home to see the completed job?

• Were you satisfied with the project? Was it completed on time?

• Did the contractor keep you informed about the status of the project and any problems along the

• Were there unexpected costs?

• Did workers show up on time?

• Did they clean up after finishing the job?

• Would you use the contractor again?

Contracts for Home Repair in Illinois

repair or remodeling work over $1,000. This written contract or work order is required by law to state

total cost, including parts and materials and any charge for the estimate. In addition, the contract is

required to give the name and address of the person engaged in the business of home repair or

remodeling. If the contractor uses a post office box, mail service, or agent to receive business

correspondence, the agreement must state the contractor's home address.

Before you sign a contract, make sure it contains:

• the contractor’s full name, address, and telephone number;

• a description of the work to be performed;

• a detailed list of all materials, including product, color, model, size, and brand name;

• written guarantees if the contractor warrants his or her work and product.

If the company won’t put its promises in writing, look for a company that will.

Do not sign the contract until you read it carefully. If the salesperson pressures you to sign before you’ve

had a chance to read and understand all of the contract, DO NOT SIGN IT. Never rely on the salesperson

to read or explain the contract to you. If you do not understand the contract, ask a trusted friend or lawyer

to help you. Never sign a contract that has blank spaces. Finally, be sure to get a copy of everything you

sign when you sign it.

Beware of contractors who ask you to pay for the entire job up front. Negotiate a payment schedule that

is based on completion of specific stages of the job. Your down payment should be as little as you can

negotiate with the contractor. You and the contractor may agree to deposit the contract money with an

independent escrow agent, such as a bank or title company. By doing this, payments can be made as the

work progresses and only if you are satisfied that the work is performed to your expectations and that

subcontractors have been fully paid.

Home Repairs.)

Mechanic’s Liens and Lien Waivers

subcontractor’s services or supplies. In that event, the subcontractor can ask a court to put a lien, or hold,

on your property until the debt is paid. As the property owner, you are responsible for the debt, and you

will not be able to sell or finance your property until all liens are paid or lifted.

Duties of the General Contractor and Subcontractors

Under Illinois law, the homeowner must request—and the contractor must provide—a written list of the

course of the project. Do not make the final payment to the contractor until you are satisfied with the

work and have obtained signed waivers showing that every subcontractor has been paid. You can find

blank "waivers of lien" forms at home stores, print shops, and on the Internet.

Before making the final payment and signing off, make sure that: the work meets the standards spelled

out in the contract; the job site has been thoroughly cleaned up; you have written warranties for materials

and workmanship; and you have written proof that all subcontractors and suppliers have been paid.

be your proof that the contractor received your letter. Keep a copy of the letter and receipt in your files.