Every year, the National Association of
Attorneys General lists home-improvement scams as one of
the top-ten consumer problems. Needless to say, there are
many pitfalls to be aware of when contemplating improvements
to your home. Currently, Arkansas law does not require residential
contractors to be licensed or bonded. Therefore, it is often
difficult to check the reputation of a contractor. The best
way to select a contractor is to ask for recommendations
from family or friends. The most important thing to remember
when making improvements to your home is to have a written,
signed and properly executed contract before any work is
begun on your home or property. In particular, make sure
the following information is contained in the contract:
- Your name;
- The name, address, and telephone number
of the builder or contractor;
- A complete description of the work to
be done and the materials to be used;
- A provision requiring written approval
for ANY changes;
- A statement that explains the builder's
or contractor's guarantee on the work that he or she
will perform;
- A starting date and a completion date;
- A complete description of the cost of
the job, full disclosure of the payment terms, and the
financing costs;
- Your signature and the contractor's
signature.
Under the Home Solicitation Sales Act, you
have a three-day right to cancel the contract if the contract
was signed in your home. During those three days, the contractor
is not legally allowed to begin the work, nor is he permitted
to deliver construction materials to your home.
Be on the Lookout for:
- Out-of-town or unknown contractors or
builders;
- Contractors who use the term "special
introductory offer," "limited-time offer," or
who offer any discount to use your house as a "model
home";
- Contractors who want a contract signed
quickly;
- Contractors who want to discuss the
price of the job later;
- Anyone who uses high-pressure tactics
or makes you feel uncomfortable or pressured;
- A company that demands that you make
full payment before the project is finished.
Contact Us
Consumer Protection Division
501-682-2341
800-482-8982 (statewide)
501-682-8118 (fax)
consumer@ag.state.ar.us
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