Cook County State's Attorney's Office:
Press Releases

Richard A. Devine
Cook County State's Attorney
500 Richard J. Daley Center
Chicago, IL 60602
(312) 603-3423

Warmer weather over the next few weeks will prompt many homeowners to consider hiring a contractor for a home repair and remodeling project. However, your home repair project could turn into a nightmare if you fall victim to a scam. Con artists may never start or complete the work. Materials and workmanship may be grossly inferior to what was promised. Undisclosed charges for permits, cost overruns, and other fees may significantly increase the total cost of the repairs. The selection of a qualified and reliable home repair contractor can be a difficult task, and consumer complaints about contractors are among the common situations reviewed by both the Better Business Bureau of Chicago & Northern Illinois, Inc. and the Cook County State's Attorney's Office, Consumer Fraud Division.

"Most home repair and remodeling companies are operated by honest people, but there are some unscrupulous people who prey on trusting consumers," said Richard A. Devine, Cook County State's Attorney. "There are warning signs that a homeowner can look for and steps that they can take to avoid becoming the victim of home repair fraud," said James E. Baumhart, President and CEO of the Better Business Bureau of Chicago & Northern Illinois, Inc.

The following precautions are recommended by the Cook County State's Attorney's Office and the Better Business Bureau to avoid disappointment in your dealings with home repair and remodeling contractors:

• RECOMMENDATIONS AND REFERENCES: Find a reliable contractor through recommendations from local utility companies, your insurance company, or through referrals from satisfied customers. Ask each contractor for references and a written estimate. Contact the references and ask them if they were satisfied with the home repairs provided by the contractor.
  
• BETTER BUSINESS BUREAU CHECK: Contact the Better Business Bureau on the web at www.chicago.bbb.org, or by telephone at (312) 832-0500 to obtain a reliability report about a contractor. A consumer who requests a reliability report in writing or on the web is not charged for this service. A reliability report will disclose if anyone has filed a complaint against the contractor within the last three years and, most importantly, if the contractor has resolved the complaint to the satisfaction of the customer.
  
• RELAX: Be skeptical of any door-to-door salesperson who claims to have just completed a nearby job and offers you a great price because there are leftover materials. Don't feel pressured by a request for an immediate decision or by a statement that an offer is good "only if you act now." Compare the estimates of a number of contractors before selecting the most attractive estimate and do not select a contractor solely on the basis of the lowest price or estimate.
  
• MANDATORY INSURANCE COVERAGE: Under Illinois law, most contractors are required to carry minimum amounts of insurance for property damage, bodily injury, and improper home repair. Contractors, unless they maintain a net worth of $1,000,000, must obtain and maintain public liability and property damage insurance in the amount of $100,000 per person and $300,000 per occurrence for bodily injury and $50,000 per occurrence for property damage. "Even if the contractor has provided you with proof of full insurance coverage, as an additional safeguard, confirm that your homeowner's policy covers accidents to persons working on your property," Baumhart said.
  
• GET IT IN WRITING: Don't rely on oral promises. Make sure that all of the important promises and representations made to you by the contractor are also incorporated in the contract or estimate. Request copies of any application for a credit check, application for financing, estimate, and sales contract.
• CONTRACT REVIEW: Read a contract carefully before signing. Don't sign a contract with any blank spaces. In general, only contracts signed at your residence have a three day "cancellation" period. Consider all other contracts to be final.
  
• PAYMENT OF A DEPOSIT: Don't pay for the entire job prior to the start of work. However, the payment of a deposit or advance payment for building materials is customary and fair in the home repair and remodeling industry.
  
• LIEN WAIVERS: Find out where the contractor will obtain his materials and whether the contractor plans to use any sub-contractors. You should obtain a lien waiver from the contractor or sub-contractor at the same time that you make a payment for materials and work. A lien waiver constitutes proof of payment and is a defense if the contractor or sub-contractor later files a mechanic's lien against your property.
  
• DOCUMENT ANY DIFFICULTIES WITH THE CONTRACTOR: If problems arise with the contractor, prepare a list and take photographs of the work and materials already furnished to you. Document all of your efforts, including telephone conversations and meetings, to resolve the dispute. Try to acquire as much information from the contractor about his reasons for nonperformance so that this information can be provided later to the Better Business Bureau, a private attorney, or the authorities.
  
• SEND A DEMAND LETTER: If telephone calls and meetings do not resolve the dispute, you should notify, in writing, the contractor of the exact nature of your problem. This demand letter should request a refund or completion of the work within a reasonable time period of at least 10 days, and it should be sent by regular and certified mail or hand-delivered. Retain a copy of this demand letter for your own records.
  

If you cannot resolve the dispute on your own, you should file a complaint against the contractor with the Better Business Bureau. A complaint can be initiated by contacting the Better Business Bureau on the web (www.chicago.bbb.org), by telephone (312-832-0500) or by mail (330 North Wabash - Suite 2006, Chicago, IL, 60611). The Bureau does not charge a fee for this service on its website or via the mail, but a nominal fee is assessed for filing a complaint on the telephone.

After the receipt of your complaint, the Better Business Bureau will seek an explanation from the contractor. Because the Better Business Bureau is not is not a government or law enforcement agency, the Bureau cannot force a reply from a contractor. However, most contractors will voluntarily resolve such a complaint to maintain a favorable record with the Bureau.

If you feel that you have been the victim of fraud, the Consumer Fraud Division of the State's Attorney's Office may be able to help you recover your losses, prosecute the person or business responsible for the fraud, and prevent other members of the public from falling victim to the same scheme. You can contact the Consumer Fraud Division at (312) 603-8700.Your home is probably your most important asset and it deserves to be protected.

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