Home improvements and renovations can be a smart way to increase the property value of one’s home, but trusting the wrong person with the job can result in just the opposite.
According to both Nassau and Suffolk counties’ Department of Consumer Affairs (DCA), Long Islanders lose close to $10 million annually in home improvement costs to crooked and fraudulent contractors. The Nassau DCA receives close to 700 complaints dealing with home improvement issues each year, while the Suffolk DCA receives close to 1,200. The Better Business Bureau also receives more than 2,500 complaints regarding home improvement issues annually for the entire metropolitan area.
Robert Meguin, the Commissioner of the Suffolk DCA, tells the Press one of the biggest red flags signaling a contractor might not be legitimate is the lack of a proper license to perform the type of work they’re offering to do. Both the Suffolk and Nassau county DCA issue separate licenses for home improvement as well as plumbing and electrical work, and it is required that a contractor hold a license to perform any type of home improvement work.
“There is no practical test,” says Meguin. “A license is not a minimum-level guarantee of a certain competency level. What we check out is character, financial responsibility and knowledge with respect to what the local Suffolk County code requires in terms of contracts.”
A group that takes the standards of contractors across Long Island a step further is the Long Island Builders Institute. Comprised of approximately 450 members across Nassau and Suffolk counties, LIBI adhere their members to a code of ethics that aims to keep contractors honest and provide a standard for their work.
“Every member of LIBI signs a code of ethics, for which there is a warranty issued for their work by LIBI, and an arbitration panel is created in case there are any problems,” said LIBI CEO Mitch Pelly. “We have our own group that goes through if there are any questions or concerns expressed by consumers.”
Once a homeowner has selected a contractor, it is important not to pay for all of the work at once. Meguin recommends using the “Rule of Thirds.”
“Typically, you shouldn’t be giving a lot of money upfront,” he says. “One handy rule is the Rule of Thirds, where you pay one-third of the start of the project, one-third when it is approximately halfway done and the final third upon completion.”
As with purchasing any other type of good or service, homeowners should shop around before selecting a contractor to work on their home. The first offer is not always the best offer.
“You should interview several contractors before signing on to a home improvement contract,” says Nassau DCA Commissioner Madalyn Farley. “Get a couple of different estimates and talk to the contractor you’re hiring.”
Getting everything in writing can also be an easy way to save a headache on a home improvement project. A breakdown in terms of labor cost, material cost, what exact work is to be done, as well as the start and completion dates, should be set in writing and signed by both the contractor and the homeowner, says Meguin. Disputes raised during or after the project can be settled much easier if the agreement is written down ahead of time.
Both the Nassau and Suffolk DCA urge homeowners to call their offices before choosing a contractor to see if they are licensed and to make sure there are no open complaints against them.
When selecting a contractor, Meguin says it’s okay to be picky.
Don’t forget to ask as many questions as possible, either, as it’s always worth it in the long run to make sure you have the right person for the right job.
