Offering absolutely free home remodeling to consumers is a tough way to make a living. But many home remodeling contractors are often at risk for doing expensive home repairs and remodeling without getting paid a dime – legally.
Numerous states have strict statutes that, in the name of consumer protection,
offer draconian remedies against what legislatures perceive to be unscrupulous contractors. Honest, good-faith contractors, however, can get caught in some of these legislative traps if they are not diligent in their paperwork.
The Illinois Home Repair and Remodeling Act (HRRA) is a good example of requirements for consumer contracts. For any home repair or remodeling contract over $1,000, a person engaging in the business of home repair and remodeling is required in Illinois to provide the consumer with a copy of the "Home Repair: Know Your Consumer Rights" pamphlet. A clear, concise, and complete written contract that spells out the who, what, where, when, and total cost of the project is required. In addition, the contract is required to give the name and address of the person engaged in the business of home repair or remodeling. If the contractor uses a post office box, mail service, or agent to receive business correspondence, the contract must state the contractor's home address.
Related enforcement statutes and court cases interpreting these statutes have had some painful outcomes for contractors. Failure to abide by the HRRA may preclude a contractor from recovering unpaid contract balances or extra work, force a return of any money received, open up a contractor to further damages, attorney fees or possible sanctions from the Attorney General. Homeowners in
The attorneys at Mayfield | Broderick can help contractors develop consumer contracts and practical checklists for dealing with residential homeowners. It would be a lot cheaper to pay us a small flat fee for this preventative consultation than to perform free work for a consumer – can’t make that up in volume.
Photo Credit: http://www.flickr.com/photos/nickdawson/522097877/
Thanks for the article. I hear there appeared new rapidshare search engines ( http://rapidqueen.com ) . I'd like to learn more about them
Posted by: Amira | 03/10/2010 at 11:01 AM
Signing these types of contracts is very necessary. It will protect the home owners of being cheated and will also force the contractors to provide the quality services to the customer. Very nice post.
Posted by: concrete crack repair products | 06/09/2010 at 10:14 AM