Nebraska Department of Labor Offers Tips for Hiring Contractors

Release Date: 6/3/2016
Contractors.png

LINCOLN -  Nebraska has already experienced many violent thunderstorms this year, and bad weather can mean residential and commercial property owners looking for contractors to repair the damage. As the agency enforcing Nebraska’s Contractor Registration Act, the Nebraska Department of Labor urges caution when hiring contractors to repair or remodel homes and businesses.

“Many property owners are satisfied with their contractor’s work.  But there are also property owners who suffer financial losses due to being victimized by a dishonest contractor,” said Commissioner of Labor John H. Albin.  “Check references, get proper documentation, and make sure all contractors you speak with are registered with the Nebraska Department of Labor.” 

Consumers can minimize the chances of being scammed by an unscrupulous contractor by following these recommendations:

  • Check references.  Get at least three to four references from previous customers.  Verify the contractor’s business phone and address, and do a search on the Internet for any complaints.  Check with the Better Business Bureau to see if complaints are on file, making special note of any that weren’t satisfactorily resolved.  Checking with and asking for references from suppliers or running a credit check can help you determine if a contractor is solvent.  After looking at a contractor’s portfolio, ask to visit a few projects similar in size and style to yours.  Try checking out one that was recently completed, one that’s currently under construction, and one completed five to ten years ago.

 

  • Get written estimates, a written contract, proof of insurance, and a written warranty. Never agree to an oral estimate or a verbal contract.  Get at least three written estimates and make sure they cover all of the specific work needing to be done, including expected start and completion dates and the estimated total cost of the project.  Make sure the contractor shows you their Certificate of Insurance to prove they have current liability insurance coverage.  A general contractor, as well as all of its subcontractors, must also have workers’ comp insurance for employees.  It too will be listed on the Certificate of Insurance.  Get a written warranty and determine who is responsible for honoring it should something go wrong.  Never sign a contract until your permits have been approved and all costs have been finalized.  Paying a deposit is expected, but never pay in full until the work is completely finished.

 

  • Beware of a contractor who makes you an unsolicited offer by showing up at your doorstep with a great deal. They may claim they were just passing through the neighborhood, had some materials left over from another job, and saw that you might need some work done.  They’ll give you “a special deal,” but only if you decide to have the work done today.  This type of “repair” contractor usually demands a big payment up front, may want to be paid in cash, and may try to talk you into unnecessary repairs. Some legitimate out-of-town companies will come to an area after disaster has struck, but be cautious.  Make sure that the contractor is in compliance with local licensing and building permit requirements.

 

Consumers following the above recommendations can greatly increase their chances of having a positive experience when using the services of a construction contractor.  For more information and a searchable listing of registered contractors, go to dol.nebraska.gov or call 402-471-2239.

NDOL Contractor Tips.pdf