Hire a Good Contractor and Avoid Fraud in Louisiana

Tens of thousands of homes are still in ruins from Hurricane Katrina. With so many homes needing repair and so few workers, it is difficult for contractors and skilled laborers to meet the demand. Unfortunately, this shortage has left many people vulnerable to scams and overcharging by some contractors. 

Protect Yourself

Louisianarebuilds.info has some guidelines you can follow to make sure you hire a good, honest contractor:

• Get at least three references from past customers.
• Get estimates from at least three different contractors for the work you need. Keep in mind that not all estimates are free, so ask about the cost of an estimate.
• Ask the contractor for a picture ID, as well as his or her name, address, phone number, and license number. Beware of contractors with just PO Boxes.
• Ask for proof of insurance before you sign the contract. The contractor should have General Liability and Worker’s Compensation Insurance. Make sure the name of the policy matches the name of the contractor. View a sample certificate of insurance. (You need Adobe Reader to view this file. If you don’t have it, download a free copy.)
• You should also make sure that the contractor has a license. Contractors MUST be licensed with the state of Louisiana if a new home is being built, if the home improvement job is over $7,500, if the contractor is submitting bids for commercial work over $50,000, or if the job involves mold removal or hazardous materials. Get a list of Commercial and Residential Contractors Licensed to do business in Louisiana from the Louisiana State Board of Contractors.
• Never pay before the work is done! If the contractor says that you need to pay first for materials, offer to go to the store with the contractor and pay for the materials yourself.
• Request a contract, but do not sign it right away. Make sure you review the contract well. The contract should include a list of work to be done and information about cancellations. You can even bring the contract to a free legal clinic at:
  
  Common Ground Collective
  1415 Franklin Avenue (at North Robertson)
  New Orleans, LA 70117
  Hours: Saturdays, 12 pm- 3pm
  
  This free legal clinic can help you decide if the contract is fair.
• And finally, beware of door-to-door sales or sales of materials “leftover from neighbors.” They may not be in the best condition, and you could end up paying more than you should.

Make Sure You’re Not Being Overcharged

Unfortunately, there are contractors who might try to overcharge you for materials or projects. To avoid paying more than you should, you need to know the average local prices for some of the most common construction materials and projects. Louisianarebuilds.info has a pricing guide to help you. 

Report Fraud

You can report an unlicensed contractor or contractor fraud:

• Call the Louisiana State Licensing Board for Contractors at 1 (800) 256-1392 (toll-free) to report an unlicensed contractor.
• Contact the Louisiana Office of the Attorney General to report contractor fraud:
  
  Consumer Protection Division
  Office of the Attorney General
  PO Box 94005
  Baton Rouge, LA 70804
  Phone: (225) 326-6705, 1 (800) 351-4889 (toll-free)

You can also visit the Better Business Bureau to file a complaint about a contractor or to find out if a contractor has already been reported.