HINKING ABOUT A HOME IMPROVEMENT?

DONT GET NAILED

 f you live in Washington, D.C. and are thinking about making improvements to your home, selecting a

contractor is the first and most important step in the process. The Federal Trade Commission offers the

following tips and checklist to help you along.

Deal only with licensed contractors. Make sure that any contractor youre considering has a

current license to operate in the District. Call the D.C. Business Services Division at 727-7070 to

find out. According to D.C. law, only licensed contractors and salespeople can require and accept

any payments before the job is completed.

Dont assume that all contractors who advertise in the home improvement section of the D.C.

Yellow Pages have a valid license or that theyre reputable. Check out licensed contractors with

the D.C. Better Business Bureau. Youll find out if there are any unresolved consumer complaints

on file.

Ask friends, relatives and co-workers for recommendations. Ask contractors if theres a charge

for an estimate before allowing them in your home. Get written estimates from at least three

firms. Ask for explanations for price variations. Dont automatically choose the lowest bidder.

Be skeptical of contractors who come to your door unsolicited or offer reduced prices because

theyve just completed work nearby and have materials left over.

Beware of contractors who ask you to pay for the entire job up front. Your down payment should

not be more than one-third of the total price. And remember, only licensed contractors and

salespeople can require and accept any payments before the job is completed. Pay only by check

or credit card, not cash.

Be cautious about using your home as security for a home improvement loan. If you fail to repay

the loan as agreed, you could lose your home.

Have a knowledgeable friend, relative or your attorney review the contract before you sign. If you

get a loan to pay for the work, consider having these documents reviewed as well.

Be aware that you have cancellation rights. Under Federal and District law, you have three

business days to cancel the deal if you sign the contract in your home or at a location that is not

the sellers permanent place of business. The salesperson must give you two copies of a

cancellation form (one to keep and one to send back) and a copy of your contract or receipt. The

contract or receipt must be dated, show the name and address of the seller, and explain your right

to cancel.

Federal Trade Commission n Bureau of Consumer Protection n Office of Consumer and Business Education

Consumer Alert

I

Prepared by the Federal Trade Commission in cooperation with the D.C. Office of the Corporation Counsel

and the D.C. Department of Consumer and Regulatory Affairs
Check Out

Your Contractor

Ask the contractor for the following information. Use it to check out

the contractor with appropriate authorities and previous customers.

If the contractor is reluctant to give you this information, consider

doing business with another company.

o An unsigned copy of the contract

o A copy of the estimate

o Contractors name ____________________________________________

Street address (no P.O. Box) ______________________________________

Telephone Number ____________________________________________

o D.C. License Number ____________________________________________

o Name under which license is filed __________________________________

o Number of years contractor has had a D.C. license ___________________

o Names, addresses and telephone numbers of previous D.C. customers. Ask

them about their experiences with the company. If possible, visit a completed job.

1._________________________________________________________________________________________________

2.______________________________________________________________________

3.______________________________________________________________________

For more information, contact the FTC at: Consumer Response Center, Federal Trade

Commission, Washington, D.C. 20580, or call 202-326-2222; TDD: 202-326-2502.

You also may visit the FTC at www.ftc.gov on the Internet.

Prepared by the Federal Trade Commission in cooperation with the D.C. Office of the Corporation Counsel

and the D.C. Department of Consumer and Regulatory Affairs