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Disaster News

[Be]{.smallcaps} **CAREFUL HIRING CONTRACTORS FOR DISASTER REPAIRS**

**ROCHESTER, Minn.** --- Watch out for scam artists. That is the warning
issued by officials with Minnesota Homeland Security and Emergency
Management (HSEM), the U.S. Department of Homeland Security's Federal
Emergency Management Agency (FEMA) and the U.S. Small Business
Administration (SBA).

\"Unfortunately in disaster situations, scam artists are often ready to
take advantage of the misfortunes of others,\" said Kris Eide, HSEM
director. \"People should be especially alert for phone or door-to-door
solicitors who hand out flyers and promise to speed up the insurance or
building permit process and those who ask for large cash deposits or
advance payments in full.\"

Federal Coordinating Officer Carlos Mitchell said, \"Whether they are
architectural, engineering, electrical, or general contractors, most
service providers in the building industry are honest, but all too often
disasters attract scam artists. Some claim to be state or FEMA
certified, when, in fact, neither the state nor FEMA certifies or
endorses any contractor.\"

If you suspect contractor fraud, contact the Minnesota Attorney
General\'s Consumer Protection Unit

**1-800-657-3787** or online at
[www.ag.state.mn.us](http://www.ag.state.mn.us/) or contact your local
**Better Business Bureau.**

If you suspect fraud, waste or abuse involving FEMA disaster assistance
programs, report it to FEMA\'s Inspector General **1-800-323-8603.**

**Tips for hiring contractors include:**

-   **Get a written estimate.** Compare services and prices before
    making a final decision. Also, read the fine print. Some contractors
    charge a fee for a written estimate, which is often applied to the
    cost of subsequent repairs they make.

-   **Check references.** Contractors should be willing to provide names
    of previous customers. Call several former customers who had similar
    work done to make sure they were satisfied with the job.

-   **Ask for proof of insurance**. Make sure the contractor carries
    general liability insurance and workers\' compensation. If the
    contractor is not insured, the homeowner may be liable for accidents
    that occur on the property.

> **-more-**

**Page 2/Be Careful When Hiring Contractors**

-   **Use reliable, licensed contractors.** Call your local Better
    Business Bureau *(and other local sources)* to inquire about a
    business before signing a contract.

-   **Insist on a written contract**. A complete contract should state
    clearly all tasks to be performed, all associated costs and the
    payment schedule. *Never sign a blank contract or one with blank
    spaces.* Make sure the contract clearly states who will apply for
    the necessary permits or licenses. Have a lawyer review the contract
    if substantial costs are involved, and keep a copy for your records.

-   **Get guarantees in writing.** Any guarantees made by the contractor
    should be written into the contract. The guarantee should state
    clearly what is guaranteed, who is responsible for the guarantee and
    how long the guarantee is valid.

-   **Obtain a local building permit, if required.** Permits may be
    required for site work including demolition and reconstruction.
    Contact your local government for permit information.

-   **Make final payments when the work is completed.** Do not sign
    completion papers or make the final payment until the work is
    completed to your satisfaction. A reputable contractor will not
    threaten you or pressure you to sign if the job is not finished
    properly.

-   **Pay by check.** Avoid on-the-spot cash payments. The safest route
    is to write a check to the contracting company. A reasonable down
    payment is 30 percent of the total cost of the project to be paid
    upon initial delivery of materials. Federal law gives consumers a
    three-day \"cooling off\" period for unsolicited door-to-door sales
    of more than \$25.

-   **If necessary, cancel a contract in the proper manner**. This
    should be done within three business days of signing. Be sure to
    follow the procedures for cancellation that are set out in the
    contract. Send the notification by registered mail with a return
    receipt to be signed by the contractor.

**Consumers should be wary of contractors who:**

-   **Lack proper identification.** A FEMA or SBA shirt or jacket is not
    proof of someone\'s affiliation with an agency. Ask to see the
    laminated photo identification card; if they don\'t have it, they
    are probably not legitimate.

-   **Go door-to-door.** Persons going door-to-door to damaged homes, or
    phoning victims and claiming to be building contractors, could be
    frauds. If callers solicit personal information such as Social
    Security or bank account numbers, they are not legitimate. FEMA
    inspectors may come to your neighborhood but all FEMA inspectors
    will have proper, laminated, photo identification.

-   **Charge fees to put customers on a list or to fill out forms.**
    FEMA registers all applicants without charge and has experts at
    Disaster Recovery Centers and through the toll-free registration
    line **1-800-621-FEMA (3362),** or **TTY 1-800-462-7585** for the
    speech- or hearing-impaired to assist with forms and to explain the
    many available assistance and loan programs. Remember, FEMA and SBA
    inspectors never charge applicants for disaster assistance or for
    inspections. If in doubt, do not give out information.

-   **Offer to increase the amount of your disaster damage assessment.**
    This is not wise and is a sure sign of a scam.

-   **Ask for cash upfront.** Under no circumstances are FEMA and other
    agency representatives allowed to accept money. FEMA inspectors
    assess damage but do not hire or endorse specific contractors.

\###

*FEMA coordinates the federal government's role in preparing for,
preventing, mitigating the effects of, responding to, and recovering
from all domestic disasters, whether natural or man-made, including acts
of terror. *