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To help avoid becoming a victim of a contractor swindler, take the following precautions:

Before hiring a contractor:
The Department of Commerce licenses residential builders, remodelers, roofers, and manufactured home installers. Ask for the contractor’s license number and contact the Department of Commerce to verify that the builder is licensed and to learn if they have been the subject of any disciplinary action. In the Twin Cities call 651-296-2488, or toll free statewide at 800-657-3602.
Ask for references: Every contractor will have a list of references. Make a point to contact and ask former customers if they were satisfied with the contractor’s work or if they encountered any problems. Ask to see homes the contractor has built in your price range.
Ask your contractor: How long have they been in business? Where and under what name? Who are their subcontractors? How long have they worked together? Have they been the subject of any legal action regarding their work?
Contact the builder association in your area: There are 20 local builder associations in Minnesota and the Builders Association of Minnesota will gladly tell you which one to contact. If the contractor you have chosen is a member, the association will have more specific information.
Contact the Better Business Bureau: They may be able to tell you if any complaints have been filed against the contractor.
After you hire a contractor: It’s a good idea to make sure the contractor has obtained the proper permits. For most projects, the contractor must obtain building or zoning permits before beginning the work. Check with your city or county.

Avoid contractors that:
Engage in high-pressure sales tactics
Refuse to provide written estimates or contracts
Fail to obtain proper permits or request that the homeowner get them
Refuse to provide their license number
Require full or substantial payment before work begins

What you should know before you sign the contract:
The contract between you and the contractor must be in writing and include:
—A summary of the work to be done
—A description of materials or a list of standard features included
—The total contract price or how the price will be calculated
The contractor also must provide to you, at no cost, a copy of all documents including proposals, quotations, change orders, and purchase orders when signed. Any changes to the conditions of the agreement, even minor changes, should be in writing as well.
It’s also a good idea to include start and completion dates, even though justifiable delays may happen.

This page created 9/25/03

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