Better Business Bureau offers tips on how to avoid contractor scams

It’s a problem that’s all too common; homeowners pay a contractor to do work that they never finish.

The Better Business Bureau says fraud cases soar in the spring and summer.

11 Investigates Amy Hudak has interviewed many homeowners who have had contractor nightmares.

She found out what you can do to make sure your money is going into the right hands.

The Miklavic family dealt with a moldy, stinky, bug-filled mess for years! Their basement was literally open to the outside over the course of several summers and winters.

“We’ve had cats, bats, probably rats,” Tom Miklavic said.

They say it started when they hired a local contractor to redo their foundation.

“We’ve paid cash so far. Over $30K. That wasn’t easy money for us to come by,” Tom Miklavic said.

He came out, dug up the backside and also this side of the house. And then disappeared.

Stories like the Miklavics, sadly, aren’t hard to find.

The Better Business Bureau of Western Pennsylvania says construction and home improvement services continue to be the number one most asked about industry, especially in the spring and summer.

“Make sure you get the information, find out who that company really is before deciding to commit or offering any sort of payment,” Caitlin Driscoll with the Better Business Bureau of Western Pennsylvania said.

To find out who you’re dealing with, there are some simple steps consumers can take:

“Check the company’s business profile. Find out their accreditation status as well as their rating on a scale of A+ to F and the reason for that rating - any complaint history,” Driscoll said.

The BBB says then:

Get at least three bids for the work you want done
Make sure everything is in writing in a contract
Never pay in full up front
Pay your contractor with a credit card because they offer more protection than cash
Do your homework and look them up.

“It’s actually a law that if your contract is over 5K, a contractor is not is able to legally accept a deposit that’s in excess of 1/3 of that price,” Driscoll said.

The BBB also recommends you check that the contractor is registered with the state attorney general’s office.

“That is the bare minimum legal requirement for a home improvement contractor to do work in the state of PA. It’s important to check that, but also to do all of your due diligence and research to make sure you’re dealing with a reputable company,” Driscoll said.

The Miklavics say they just want to warn other families.

“Homeowners need to know you have very little protection, especially if the contractor knows what they’re doing,” Miklavic said.

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