If you are financing your home improvements, be aware that contractors are not allowed to lend you the money, or act in association with any lending institution if the loan is secured by a mortgage on your home. Similarly, a contractor cannot offer you financing with a specific lender if your home is used as collateral. You have the right to choose any lender who is willing to negotiate your loan. Get a cost estimate from the contractor for the work that needs to be done, and then shop around for the best financing option. This allows both parties to reach a mutually agreeable resolution with the help of a facilitator.
Mediation is voluntary, requiring both parties' consent.
You may apply for mediation through your local consumer group , which is affiliated with the Attorney General's Office . If the contractor failed to include the permit notice in the contract and you meet other qualifications, you may have access to the Guaranty Fund. A professional, neutral arbitrator hears the case with both parties present and makes a legally binding decision. Either party may appeal the decision in court within 21 days. A contractor with a dispute against a homeowner may initiate an arbitration action only if both parties agree to it in the contract.