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Home repairs: beware of too-good deals

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Published: August 12, 2010

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Farmers and homeowners whose homes and buildings were damaged by myriad summer storms and rains have been warned to be wary of potential repair scams.

Service Alberta, the Alberta government department responsible for consumer protection, issued a news release warning homeowners about hiring contractors.

Mike Berezowsky of Service Alberta said the warning is preventive and no one has contacted the office about problems.

“Events like that offer opportunities to dishonest businesspeople,” he said.

The news release includes a list of steps for consumers facing home repairs.

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“These are generally just good rules of thumb when dealing with home repairs and renovations,” said Berezowsky.

Before signing any contracts, homeowners should check references through neighbours and friends or by calling the Better Business Bureau and the Canadian Home Builders’ Association. Service Alberta recommends only hiring qualified tradespeople who are able to provide a certificate with their trade credentials.

Before starting renovations, talk with your home insurance representative to make sure your home is covered during construction as well as construction-related fire and liability risks.

Always insist on a written contract and make sure any changes to the contract have your written and signed approval. A formal payment schedule should be clearly outlined in the contract.

Most contracts want a deposit or down payment. Find out if this is refundable and under what conditions.

Contractors may also want interim or progressive payments after specific work is completed. Insist on a signed receipt for every payment.

Before declaring the job or part of the job is finished, meet with the contractor to inspect the work. Ensure what was promised is completed satisfactorily before making the final payment.

Homeowners should be aware that suppliers or subcontractors might have the right to register a lien on the property if they are not paid for their work or materials.

Some tips to prevent fraud

Get written estimates before any work begins that include:

a description of the work that needs to be done, listing the type and quality of materials that will be used, along with an itemized cost breakdown and the total job price;

the project start and completion date and a statement of any guarantees made by the contractor.

Watch out for contractors who:

knock on your door saying they are in the area and offer you a special price;

quote a price without seeing the job first, demand a large down payment, or refuse to provide you with a written contract;

list a post office box as their address or an answering service for a telephone number;

won’t commit to a start and finish date.

For more information, visit www.servicealberta.gov.ab.ca.

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