NARI Notes: Tips For Homeowners To Avoid Home Improvement Scams
Kathy Raab, Executive Director, NARI of Madison, Inc.
This article appears courtesy of the NARI of Madison, Inc. and National Association of the Remodeling Industry (NARI)
During times of a softer economy paired with the approach of warmer weather as well as the horrific flooding in the area, the National Association of the Remodeling Industry (NARI) wants to remind homeowners to beware of unscrupulous people posing as remodelers.
One common issue exploited homeowners have run into is having to pay both the contractor and the subcontractors. The homeowner’s financial obligations should only be to the contractor. Some dishonorable contractors are collecting large, upfront payments from residents. When the work has been completed, instead of paying the subcontractors, the dishonest business owner instead pays the interest on properties they have already purchased and can only re-sell below cost. This predictably leaves subcontractors without paychecks and forces them to establish mechanics’ liens on their customers’ properties.
The subcontractors secure payment for their work, but this causes difficulties for homeowners, who then pay the same fee twice for one remodeling project. Since subcontractors have 90 days to file mechanics’ liens, it could take months for homeowners to realize that they have been defrauded. Residents should note that these types of liens will pay the subcontractors before the homeowners if occupants sell their properties.
Protect Yourself
To avoid these circumstances and ensure that you only pay the cost of a project once, NARI suggests you take the following steps:
♦ Be sure you hire an experienced remodeler and not a fly-by-nighter waiting for the building industry to pick up again.
♦ Contact state or local licensing agencies to ensure a contractor meets all requirements.
♦ Check with Madison’s NARI chapter, (NARI of Madison, Inc. 222.0670 or www.remodelingmadison.org).
♦ ContactWisconsin Trade & Consumer Protection Office (224.4953) or the Better Business Bureau (http://www.wisconsin.bbb.org) to ensure the absence of any adverse files on-record for the contractor.
♦ Request a free copy of the NARI Remodeling Directory for reliable information on how to interview a remodeler, consumer protection tips and contract suggestions.
Homeowners Can Depend on NARI
NARI reminds all homeowners that its members must adhere to a strict code of ethics and that there are grievance procedures in place formembers who do not. Under the NARI code of ethics, members pledge to always provide quality service and work and follow the high ethical standards of the association, to only promote products and services that are functionally and economically sound, and consistent with objective standards of health and safety, that any advertising or sales promotions will be factually accurate, and any agreements or warranties will be fair and mutually beneficial to all parties concerned.
NARI members also agree to honor all contractual obligations, until and unless all contractual parties involved alter or dissolve them. They also will promptly acknowledge and act on any customer complaints, and refrain from any act intended to restrain trade or suppress competition.
NARI is the only trade association dedicated solely to the remodeling industry, and its members voluntarily subscribe to a strict code of ethics. To find a NARI contractor in the Madison area, call our office (222.0607) or use the contractor locator function on our website— www.remodelingmadison.org
The NARI Remodeling Directory lists 250 local contractors, subcontractors, suppliers, designers and support businesses by Specialty. The guide also has articles that can help you through your remodeling project including:
Interviewing a Remodeler (What Questions Should You Ask?); Consumer Protection Tips (From theWisconsin Office of Consumer Protection & Citizen Advocacy); Living Through a Remodel, and more.
