Code of ethics
View the video below (if you haven't seen it) for critical information about
the home-improvement industry.
Protect Yourself From Contractors Who Leave Jobs
Unfinished… or Those Who Insist on Up Front Payments Then Disappear.
The home-improvement industry is known for its lack of
integrity and ethics – things like contractors who make promises they don’t
keep, take advance payments and never show up again, start the job then
disappear, or don’t finish the job within a reasonable time period.
Your first line of protection is to make sure the
contractor’s company is legitimate and reputable. Even if the salesman’s
presentation looks polished and his truck looks new, the problems could be just
beginning! Remember this basic rule: Never judge a company by the appearance of
their sales people alone! Insist that the following documentation be provided
before the job starts... and
before you give him any money.
“Consumer Protection Policies” Your
Contractor MUST Provide For You
Reputation:
- Current
Wisconsin Division of Safety & Buildings Registration Card:
Contractors must be registered with the Division of Safety and
Buildings (608-266-3151), showing proof they have paid for worker’s
compensation, unemployment insurance, and minimum levels of liability or a
bond, in order for them to obtain any necessary building or construction
permits for your project. Do not hire
any contractor that places the responsibility of securing building or
construction permits on you, the homeowner.
If you take out the permit, you do not have assurance that the
contractor has proper insurance.
-
Better Business Bureau Membership:
Do not hire any contractor who is not
a member of the Better Business Bureau.
The Bureau reports on all companies, member or not, that have been
the subject of frequent inquiries or
complaints.
However, to become a Better Business Bureau member, a business must
agree to conduct business in accordance with Better Business Bureau
standards. For example, it agrees to
respond to any complaint a customer makes about it to the Bureau. It also
agrees to adhere to the Bureau’s advertising standards, which are based upon
honesty in all advertising and selling claims. Before a business is accepted
for membership, it is screened to be sure it has met any licensing
requirements, that information submitted to the Bureau is clear, that its
complaint history is satisfactory, and that its advertising complies with
Bureau standards. A Roper survey shows that 83% of the public prefer to do
business with a Better Business Bureau member. Once you have all the
information they can give, you will be better-equipped to make an informed
buying decision.
- Supplier
reference letters: Supplier and business reference letters show that the
contractors have solid working relationships with their suppliers and
vendors. It proves stability,
credit-worthiness, and solid business practices.
This provides written confirmation of the company’s dealings with a
supplier of the product that they are putting on your home.
These letters are easy for your contractor to obtain from suppliers –
if yours says that this kind of letter is difficult to obtain, then there
might be something that they’re trying to hide.
Your contractor should pay his suppliers within the agreed upon
payment period allotted them. Financially stable contractors have a good
track record with their vendors.
- Client
reference letters: All reputable contractors carry pre-printed lists of
references... that includes customers from prior years, as well as customers
from the previous month. Also, ask for suppliers, business references, etc.
Your
Contractor’s Material Supplier Could Put a Lien on Your Home…
Even If You’ve Paid For The Job In Full!
I know it’s hard to believe, but it’s absolutely true.
If a contractor is financially unstable – in business or personally – he
may not have the ability to pay his suppliers promptly... or even at all.
The result: The material supplier can legally put a
lien on
your home which could prohibit you from selling your property
(not to mention the hassle). You would then be legally obligated to
pay the suppler, even if you’ve already paid the contractor for the job in full.
This could cost you several thousands of dollars!
Protect yourself against financially
unstable contractors by asking for the following items.
Stability:
- Certificate of
Insurance – not “Self –Insured”
- General
liability & workman’s comp: All policies should show a minimum of
general aggregate $3,000,000.00 or more; completed operations
$1,000,000.00; Automobile liability $500,000.00; and workers
compensation marked Wisconsin Statutory limits.
Sigma Exteriors
Inc. provides a copy and access to
our
insurance information so that all customers can have the
peace of mind they are properly protected while working on their
project. Insist on this information and check to ensure it is
valid before allowing anyone to work on your home or you are
financially responsible for any catastrophes that may occur. If your
contractor’s insurance policy can’t cover potential damages, then the
contractor would be personally liable.
If he cannot cover the damages himself, you will again have no
legal recourse and will end up paying for the damages yourself.
Over three-fourths of construction companies are not financially
stable and, therefore, don’t carry proper insurance coverage to protect
you against losses.
- Get a
Certificate of Insurance with the homeowner’s name and address listed as
a certificate holder: This certificate shows that the contractor has an active policy.
As a certificate holder, the homeowner will then be informed if
the contractor’s insurance policy expires.
- Lien Waivers:
When any payment is made especially final payment, get lien waivers from
the contractor. This will prevent a subcontractor or material supplier from
putting a lien on your home if the contractor doesn't pay the bills.
Wisconsin
law requires that consumers receive a lien waiver from a contractor
whenever they make partial or final payments. Consumers, however, should
know in advance to ask for a lien waiver if one is not offered.
- Multiple
payment and financing options: A reputable contractor will have several
different payment options available to them.
Only reputable contractors can establish working relationships with
banks and finance companies. Beware
of contractors who only take cash or credit cards and are asking you to find
your own financing options.
Problems
associated with poor installation, shoddy workmanship by inexperienced
installers typically don’t show up on roofing, siding, or windows until several
months or several years later, at which time the damage is far worse and can lead to
very expensive remediation.
Contractors who don’t use
certified installers – who strictly adhere to minimum installation
guidelines, policies & procedures – will incorrectly install your new roofing,
siding, or windows leading to damage and expensive repairs later on. Good luck
in getting a contractor to come out for warranty service. You must realize that
contractors don’t get paid for warranty work, so it’s not in their best interest
ot be overly responsive to your needs. Shoddy workmanship is typical in this
industry simply because homeowners don’t know what to look for.
The first step in protecting yourself from incorrect installation methods
and mistakes is to demand certified installers and strict adherence to material
procedures.
Guard Yourself Against Faulty Workmanship… Demand That Your Contractor
Complies With These “No-Fault” Job Quality Audits:
Workmanship:
- Job scope
evaluation checklist: Make sure your contractor has proper procedures to
thoroughly inspect your project to ensure accuracy. In order for the
contractor to be able to give you an accurate and thorough estimate, he must
thoroughly check your home. If only a superficial inspection is conducted,
the bottom line price that you get quoted will more than likely not be the
same price that you actually pay. It’s like taking your car to the mechanic
and having him diagnose the problem simply by looking at the car, instead of
opening up the hood and thoroughly checking the engine. It doesn’t work for
cars, so why would it work for a remodeling project?
- Written bid
with official L-2 or L-3 specifications: Many people are unaware that
there are varying levels of job bid specifications.
Most contractors provide a L-0 (No written bid) or an L-1 (Basic
receipt or invoice). The minimum you should accept is an L-2 bid, which
details the type and amount of materials to be used. Even better than that
is an L-3 bid which lists measurements, estimated time to be spent on the
job, and details the type and amount of materials to be used. Always make
sure the bid has the contractor’s signature on it.
- Compliance to
Manufacturer Installation Guidelines:
Ensure that you are using experienced and/or certified installers for each
product that is being installed. Ask
for the number of years’ experience that the installers have in the proper
installation of the materials being installed.
-
“Zero-Defects Quality Assurance”
report: There are quality audits
that should take place during the installation of your new roof, siding, or
windows. You probably don’t know what
they are and most companies don’t... or they don’t follow them.
Ask for your quality assurance report.
Each point should be inspected, graded and passed off by a job
inspector and the list should be reviewed with you during and after the
completion of the job.
- “House Shield”
property damage protection plan:
Make sure the contractor you hire has written procedures on how they
plan to protect your property against potential damages during the
construction project. Most
contractors don’t have a written plan but simply say, “You can be rest
assured that we will do all we can to make sure that no damage occurs to
your home during the construction…” This verbal commitment will leave you
open to headaches, frustration, and nightmare situations.
There’s no need to take that risk!
- On-site crew
foreman – introduced to homeowner:
You need to know who the person in charge of your project is, how to
reach them, and feel comfortable about asking them questions or
communicating concerns during the process.
- Daily job
inspection by Project Manager: Frequent inspection allows for better
communication between the installers and the supervisor.... and ultimately
better communication with you. The proper frequency of supervision varies
from daily to weekly depending on the job. For most standard residential
jobs, your job inspector should show up each day. The result is a job that
is on schedule, and more “fault-free” workmanship.
Plus, it allows the home owner the opportunity to ask questions and
get answers.
- Post-job
clean-up roster and job completion checklist: Your home and yard should
be picked up for large debris and dangerous wood daily by the crew. After
the job is completed, a total home clean-up should take place, including
detection (with a specialized magnet) and removal of any dangerous nails in
your yard. Have your contractor
follow a clean-up roster to make sure nothing is missed.
- Installation
Warranty Certificate: Verbal installation warranties won’t do you any
good if something goes wrong with your product due to installation.
Remember, shoddy workmanship ALWAYS leads to premature deterioration
of the product. Reputable contractors
will have no problem providing you with a written warranty.
- Quality Control
Post-Installation Inspection Report: Only a signed inspection report
from an experienced quality control manager will prove that your home
improvement project was installed properly according to manufacturer
specifications. This detailed
inspection guarantees that you are truly getting what you paid for.
Protect
Yourself Against Accidents, Poor Workmanship, And Theft. Make Sure The Workers
On Your Project Comply With Professional Courtesy Standards.
Many times the workers on a job site are not the type of
people you would want to invite over for Sunday dinner.
Problems and complaints stem from loud aggressive music being played,
beer and other alcohol being consumed on the premises, loud foul language... or
even possibly drug use. These types
of incidences are annoying and offensive at least, and at worst could lead to
accidents, poor workmanship, or even theft of your property.
Demand That
your Contractor Comply With These “Professional Service” Protection Points
Professionalism &
Service:
- Problem
resolution program and agreement:
If something goes wrong, is there a predefined problem resolution procedure
in place where 3rd party arbitration is provided to the homeowner
at no cost? There should be strict adherence to the 2005
Wisconsin
Act 201, the “Right
to Cure Law,”
- Communication
Process: Independent studies of contractor/consumer disputes indicate
that most disputes are caused by:
- Communication Problems;
- Unrealized expectations; and,
- Unforeseen additional costs.
As you can see, the root of all major problems stem from
lack of communication. Unrealized
expectations and unforeseen additional costs can all be avoided by proper
communication throughout the process-- starting from the initial inspection, to
the product selection, to ensuring the qualifications of the installers, and
finally, to the actual installation process itself.
To ensure consistency within any organization, the communication process
and procedures must be written down in order to be properly followed.
If the process is simply verbal, then inconsistencies will definitely
occur, which means that the individuals handling your project may not provide
you with the level of communication that you would like.
Make sure that your needs are being heard throughout the entire process.
Lastly, it is important that you understand the
communication process available during the installation of your project, in case
you have any immediate questions or concerns during the installation.
You must know who to direct the questions to, how to contact them, and
the expected response time. If
you do have questions, you should
be able to have immediate contact with the supervisor.
The old “call the office and they’ll dispatch a call to him on the
radio,” is often just a stall tactic, and even if it isn’t, it could still take
an hour or more to get in contact with you, which could be enough time to
severely delay the completion of your project.
Notice of Rescission – Federal Law
It is a requirement of federal law that any contract signed
outside a business office or in your home, contain the language:
You, the buyer, may cancel this transaction at any time
prior to midnight
of the third business day after the date of this transaction. See the attached
notice of cancellation form for an explanation of this right.
The code of Federal Regulations; Title 16, Chapter 1,
Subchapter D, Part 429 is known as the Rule Concerning Cooling-Off Period For
Sales Made At Home Or At Certain Other Locations (16 CFR
429.0). This regulation requires that the following introductory language be
placed in immediate proximity to the space reserved in the contract for the
signature of the buyer or on the front page of the receipt if a contract is not
used. The language must be in 10 point bold type:
If the cancellation notice is not attached to the contract,
the above sentence must be altered to reflect the correct location of the
cancellation notice. (i.e. – replace the word “attached” in the last sentence
with the word “accompanying”.)
“Warning” Do not sign any contract or authorization unless
you are provided with specific paperwork forms, and thoroughly informed of your
rights to cancel.
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