Why Should I Be Careful When Hiring A Home Improvement Contractor?

Home improvement contracts can easily cost homeowners hundreds of thousands of dollars.  However, in many cases, homeowners are careless in selecting and hiring their home improvement contractor.  The following are reasons for taking special care when selecting and hiring your home improvement contractor:

·         Most home improvement contracts violate New Jersey laws and regulations. 

·         Many home improvement contractors ignore the New Jersey laws and regulations that they are required to follow when dealing with consumers.

·         It is very common for home improvement contractors to accept deposits, only to abandon a jobsite before the job is complete. 

·         The workmanship of many home improvement contractors is substandard and/or violates municipal code requirements.

·         Some home improvement contractors live “hand to mouth,” so that they take deposits from you and use them to pay for projects other than yours and mislead you into believing they are using the money you give them to buy materials for your home or to pay for labor being performed on your home.

·         It is not uncommon for home improvement contractors to let their insurance coverage expire.

·         Many home improvement contractors quote a customer one price, only to increase the bill at a later time, such as in the middle of the project.

·         Many home improvement contractors overcharge for permits or promise but fail to secure permits for the work that they perform for homeowners, thereby causing violations of municipal codes and/or New Jersey laws.

·         Many home improvement contractors’ advertisements violate New Jersey laws or regulations.

·         Many home improvement contractors don’t actually perform the work you hire them to do; instead, they hire subcontractors who may or may not be skilled in home improvement work.

·         Many home improvement contractors fail to complete home improvement contracts on time, leading to a house that is an unfinished nightmare!  Imagine being unable to use your kitchen, laundry room or bathrooms because of an incompetent home improvement contractor!

·         Many home improvement contractors fail to order materials so that the home improvement project can’t be completed.

·         It is not uncommon for home improvement contractors to put a lien on your property for failure to pay their bills.

·         Failure to dispute a home improvement contractor’s bill in timely fashion could result in your having to pay the home improvement contractor’s bill as well as their attorney’s fees and court costs that they incur to collect it from you.

·         For most people, a home is the greatest single investment.  It is reckless to endanger your most important investment by hiring an incompetent home improvement contractor.

Should I Expect The Home Improvement Contractor’s Insurance To Protect Me From the Home Improvement Contractor’s Misconduct?

New Jersey law does not force home improvement contractors to maintain insurance for all types of claims and insurance companies are unable or unwilling to provide insurance for many types of common claims.  Even if the home improvement contractor is insured, the insurance company usually does not reimburse homeowners for the following misconduct committed by home repair contractors:

·         violations of the New Jersey Consumer Fraud Act.

·         breaches of contract

·         breaches of warranty

Such claims are often the most common claims brought by consumers against home improvement contractors.  If your home improvement contractor runs away with your money or commits consumer fraud, do not expect their insurance to cover the damages they cause you.

What Steps Should I Take To Try To Determine If The Home Improvement contractor or home repair contractor I want to hire is reputable?

No amount of research or investigation into the background of a home improvement contractor or home repair contractor shall assure that the one that you hire shall do everything right for you.  However, the following are some steps you can take that might reduce the chance of your becoming a victim of home repair fraud:

·         Before signing a home repair contract, have an attorney licensed to practice law in the State of New Jersey and who is familiar with the New Jersey Consumer Fraud Act, the New Jersey Home Improvement Regulations and with home improvement contract disputes review the contract.  If a home improvement contractor refuses to give you a copy of the home repair contract to review before you sign it, don’t even consider hiring them!   A little money spent before you hire a home improvement contractor may be a great investment and may avoid many headaches later!

·         Find out what a home improvement contractor is and is not required to do under New Jersey laws and regulations.  For example, all home improvement contracts above a certain dollar amount must be in writing.  With such knowledge, you may be able to tell if the home improvement contractor is trying to violate New Jersey laws or regulations.

·         Before signing any home repair contracts, ask for at least three (3) home improvement contractors to give you work estimates for your home improvement project.

·         Get copies of certificates of insurance from the home improvement contractor and call the insurance company that issued the certificates to confirm with the company that the home improvement contractor’s insurance coverage has not been cancelled or did not expire.

·         If you need to finance the job, seriously consider financing it through a bank or other independent financial institution rather than through the home improvement contractor.

·         Get a list of at least 10 customer references from the home improvement contractor and call some of the references to confirm that customers are satisfied with the home improvement contractor’s work.  Find out if they were satisfied with all parts of the job and how long the job took to complete. 

·         Ask to see photographs of other jobs completed by the home improvement contractor.  A good home improvement contractor often keeps photo albums of their work.  Be sure to ask the addresses of the places that the photos illustrate – a deceptive home repair contractor could show you pictures of jobs that someone else completed.  

·         Get the home improvement contractor’s registration number issued by the New Jersey Division of Consumer Affairs and call the New Jersey Division of Consumer Affairs home improvement contractor hotline (1-800-242-5846) to confirm that the home improvement contractor is in fact registered with the New Jersey Division of Consumer Affairs and to find out if other consumers have made complaints about the home improvement contractor.

·         Find out who actually does the work at your home under the contract – is it the home improvement contractor and his/her employees or does the home improvement contractor merely hire subcontractors to do all the work?  If the home improvement contractor does use subcontractors, does the home improvement contractor oversee their work on a daily basis or merely leave them at the jobsite unsupervised?

·         Avoid hiring home improvement contractors that ask you to sign a statement that says that you will cover the costs of materials and labor if the contractor does not pay.  For example, if the home improvement contractor uses subcontractors, the home improvement contractor may refuse to pay the subcontractors who shall then seek to hold you responsible for their bills.

·         Avoid hiring home improvement contractors or subcontractors that require you to give up your rights to jury trials and/or that require you to submit disputes to mediation and/or arbitration.  If you end up getting into a dispute and have to submit to mediation and/or arbitration, resolving the dispute could take much longer and cost you much more than if you kept the right to use the court system.

·         If your home improvement project requires another licensed/registered/certified/regulated professional or semiprofessional, such as Appraisers, Architects, Burglar Alarm Installers, Electrical Contractors, Engineers, Fire Alarm Installers, Land Surveyors, Landscape Architects, Locksmiths or Plumbers, if they are required to hold a license/certification/registration issued by the State of New Jersey, check to confirm that their licenses/registrations/certifications are up to date and valid.

Checklist For Use Once You Hire Your Home Improvement Contractor

Once you hire a home improvement contractor, consider following these guidelines:

·         Keep a folder of all contracts, change orders, invoices, estimates, materials lists, payment records, photographs, permits, emails, letters and the like.

·         Do everything in writing and keep copies of all such writings – all concerns about deadlines being missed, work being substandard, work being incomplete or changes to the job should be in writing.  Never enter into an oral contract for home improvements!

·         Before you sign the home repair contractor’s contract, be sure to request a lien waiver from the home improvement contractor.  A lien waiver is a receipt stating that workers and material suppliers will not ask you for money once you pay your home improvement contractor. 

·         Make sure that you do not have to pay in full for the job before it is completed.  Instead, demand that payments be made in accordance with a performance schedule – that is, as specific stages of the home improvement project are completed, payment becomes due.

·         Do not sign any certificates or acknowledgements of completion before the home improvement work is actually completed and inspected by any municipal authorities/code officials.

·         Keep records of all payments made to the home improvement contractor.  Ideally, you should make payments with a traceable source of funds, such as a check or money order and keep copies of all such payments.  Also, be sure to keep copies of any checks you get back from your bank so that you are able to trace the bank account of the home improvement contractor (useful if you or your attorney have to sue the contractor and want to recover a judgment from that account).

·         Get a written start and end date to the home improvement contract.

·         Get written guarantees and warranties as to all labor and materials to be supplied under the home improvement contract.

·         Make sure that the home improvement contract specifies the name brand and/or an explanation of the types of materials to be used during performance of the home improvement contract.

·         Find out what a home improvement contractor is and is not required to do under New Jersey laws and regulations.  For example, all home improvement contracts above a certain dollar amount must be in writing.  With such knowledge, you may be able to tell if the home improvement contractor is trying to violate New Jersey laws or regulations.  There is additional information elsewhere on this website about certain laws and/or regulations that home improvement contractors must follow.

·         Don’t break the law yourself when dealing with the home improvement contractor.  If you do, it could result in any claims for damages you might have against the home improvement contractor being compromised.

·         Beware of home improvement contractors that don’t have a street address on their letterhead or contracts – home improvement contractors that only list post office boxes instead of street addresses may be suspect.  Also, if possible, drive by the street address to confirm that it is legitimate.

·         Know your cancellation rights!  Many home improvement contracts are able to be cancelled within a certain period of time if certain procedures are followed.  If you intend to cancel your contract, be sure to consult with an attorney licensed to practice law in New Jersey who is familiar with the New Jersey Consumer Fraud Act, the New Jersey Home Improvement Regulations and with home improvement contract disputes.

·         Before work begins on the home improvement project, make sure that the municipality where the home is located issued the necessary permits for work to begin.

·         If you must apply for permits yourself, make sure that the home improvement contractor is identified on the permits as the party performing the home improvement project.

·         Find out from the municipal government where your home is located the inspections that must occur to ensure compliance with applicable municipal codes.

·         If your home improvement job requires the services of an architect, make sure that the architect actually approves/signs the architectural plans.

·         If your home improvement job requires the services of a licensed plumber or licensed electrician, make sure that they actually sign/seal their work.

·         Review bills immediately after receiving them and raise all objections to charges in writing as soon as possible (preferably within 20 days of the date of the bill so as to avoid having to pay the home repair contractor’s bill in full plus their attorney’s fees and costs to collect the bill from you).  Keep copies of all such written objections.

What Do I Do If I Have A Dispute With My Home Improvement Contractor?

·         Take photos of any defective workmanship and keep the photos in a safe place in case you need them.  If the home improvement project is taking longer than promised, take photos of the work at the different stages of completion so you might be able to prove that there were substantial delays in completing the home improvement contract.

·         Keep a folder of all documents that involve the dispute and the home improvement contract, including contracts, change orders, invoices, estimates, materials lists, payment records, photographs, permits, emails, letters and the like.  If you are sending letters, send them via both first class and certified mail, RRR and keep all certified mail cards or returned letters.

·         Do not wait to preserve your rights!   Review bills immediately after receiving them and raise all objections to charges in writing as soon as possible (preferably within 20 days of the date of the bill so as to avoid having to pay the home repair contractor’s bill in full plus their attorney’s fees and costs to collect the bill from you).  Keep copies of all such written objections.

·         There are specific deadlines for all types of lawsuits, called statutes of limitation or statutes of repose.  For example, some contract disputes must be filed within 4 years that the dispute first arose or from the date the contract was signed, while other contract disputes must be filed within 6 years of one of those two events.  To determine which deadlines apply to your case, consult a licensed New Jersey attorney.  Failure to file a lawsuit within the specific deadline may result in your forever giving up all rights to file a lawsuit against the people or businesses who you believe caused you to suffer damages.  If your claim involves a government branch or government employee, consult with a licensed New Jersey attorney, since you may have 90 days or less to file a claim notice in writing before you are even able to file a lawsuit. 

·         Before making any hasty decisions and before threatening legal action, consult with an attorney licensed to practice law in New Jersey who is familiar with the New Jersey Consumer Fraud Act, the New Jersey Home Improvement Regulations and with home improvement contract disputes.  Find out from that attorney what your options are and how the law may affect any decision you may wish to make.

Does The Law Office Of Paul Depetris Have Experience Handling New Jersey Home Improvement Contract Cases?

Yes.  Paul DePetris has performed the following tasks:

·         represented consumers, homeowners, home repair contractors and home improvement contractors, home inspectors, home buyers, home sellers, real estate brokers and real estate agents in New Jersey disputes.

·         appeared in court in cases involving New Jersey Home Improvement Contract disputes.

Mr. DePetris has appeared before the Superior Court of New Jersey in the following counties:

Mr. DePetris has also appeared in federal courts - the District of New Jersey in Camden, Trenton and Newark and in the Eastern District of Pennsylvania.

Mr. DePetris has handled claims and cases for clients living in Atlantic County, Bergen County, Burlington County, Camden County, Essex County, Gloucester County, Mercer County, Middlesex County, Monmouth County, Morris County, Ocean County and Somerset County.

Mr. DePetris is also the author of the following publications:  New Jersey Consumer Fraud Act & Forms (New Jersey Law Journal Books, 2007); Learned Professionals, Licensed Semiprofessionals and the Home Improvement Contract:  The Origins of the Licensed Professionals’ Doctrine (New Jersey Lawyer, Oct. 2008); and Liability For Consumer Fraud In Real Estate Transactions (New Jersey Law Journal, March 18, 2009).   Mr. DePetris also gives seminars on the New Jersey Consumer Fraud Act.

How Do I Find Out If I Have A New Jersey Home Improvement Contract Case?

 For a no cost phone consultation about what the Firm might be able to do for you, call or write an email to Mr. DePetris at:  609-714-2020 or consumerlaw@newjerseylemon.com.