Home > BBB Services > News
April 20, 2006
BBB Warns Spring Time Brings Home Improvement Scams
VANCOUVER – With warm weather approaching, the Better Business Bureau of Mainland BC is warning homeowners to be on the lookout for home improvement scams. This is the time of year when less-than-reputable or unqualified contractors breeze into town promising a variety of services at cut-rate prices. They may show up at your door, advertise in local papers or deliver fliers to your home.
Complaints to the BBB concern a wide range of problems, including high-pressure sales tactics, confusion over contract terms, poor workmanship, over-charging and incomplete job performance.
“It’s not your lucky day when a contractor shows up on your doorstep offering a too-good-to-be-true deal on a project. The salesperson may claim he has materials left over from a recent job at your neighbor’s house or the ‘house down the street.’ This is a common tactic of fly-by-night contractors who are based out-of-province and use their pick-up trucks as their place of business,” says Sheila Charneski, President of the Better Business Bureau of Mainland BC.
Complaints against home improvement/home repair contractors are among the most common consumer complaints received by the Bureau. And there is little wonder, considering how lucrative the business is. The Greater Vancouver Home Builders Association (GVHBA) estimates that BC residents will spend over 6.1 billion dollars on home renovations and improvements this year.
“There are thousands of reputable contractors who will deliver quality work, on time and within budget. Consumers can avoid costly mistakes and scams by doing some research before opening their wallets,” said Ms. Charneski.
Comparing costs before making a financial commitment toward any home improvement project is very important. In doing so, you should obtain at least three bids from prospective contractors based on the same building specifications, materials, labour and time needed to complete the project.
The BBB advises homeowners to never let a contractor pressure them into making a snap decision. A reputable professional will recognize that you need time to consider many factors when deciding which contractor to hire.
When looking for a reliable contractor, consumers should employ a contractor with an established business in their area. Ask for references and check them out. Look into the contractor’s standard of work and their professional affiliations such as the GVHBA; verify their insurance; and ask them for a WorkSafe BC ‘clearance letter’ to ensure that they are registered and in good standing. Phone the BBB or check the website for a reliability report on the business.
Do not permit work to start without a signed written contract that includes all verbal promises that were made by the contractor. Be sure that the written contract includes a start and completion date, a breakdown of the cost and information about the contractor, business name, street address and phone number.
If you are asked to pay for the entire job up-front, this should raise a red flag. Arrange for payments to be made as parts of the job are completed. You must withhold 10% of the total cost upon completion of the work for 55 days. This will protect you should liens be placed against your home. And, homeowners should pay by cheque or credit card, never cash and ask for a receipt.
For more information about working with contractors go to our Buyers’ Tip on Contractors.