Press Release
Attorney General Offers Advice on Home Improvement Contracts
March 8, 2022
(Anchorage, AK) – As Spring inches closer, some Alaska homeowners may be considering home improvement projects. For those who seek out a contractor to complete the work, deciding who to hire is one of the most important parts of the planning process.
In the United States, home improvement-related issues and scams are among the top consumer complaints submitted to federal and state regulators. As the Alaska Department of Law’s Consumer Protection Unit observes National Consumer Protection Week, Alaska Attorney General Treg Taylor offered advice for homeowners.
“If homeowners do some research and ask the right questions, they can avoid the headaches and hassle of dealing with disreputable contractors,” Attorney General Taylor said. “Ask friends and neighbors for recommendations, get estimates in writing, and never pay the full price of the work upfront.”
Most Alaska contractors are reputable, skilled professionals who use reliable materials and have a track record of good work. Others, though, would cut corners or deceive consumers in order to make some money.
Attorney General Taylor offered these recommendations for finding a reputable contractor:
- Make sure the contractor is registered, bonded and insured. Most contractors must be registered with the Division of Corporations, Business and Professional Licensing. General contractors must carry a bond of $25,000. (Note: Some people may say they are “licensed and insured,” because they have a business license and liability insurance, so make sure to search online for a contractor’s registration.)
- Check references. Ask friends, family or neighbors about the experiences they’ve had with contractors. Check online for reviews.
- Get written estimates. Solicit estimates from more than one contractor, and be sure the estimate includes detailed specifications for the job and the total estimated charges for the work.
- Insist on a written contract. The contract should stipulate exactly what work will be performed, the materials to be used, completion dates and total cost of the project. A well-written contract makes terms clear to both the homeowner and the contractor.
- Don’t pay in full up front. Most projects are paid for in installments, with partial payments due at different stages of work. Final payment should be contingent on completion of the project.
Consumers should be wary of contractors who solicit business by going door-to-door, ask for entire payment up front, or promise a lower price by using construction materials left from a previous job.
To learn more warning signs of possible home improvement scams, and for a checklist of best practices when entering into a home improvement contract, visit the Consumer Protection Unit’s home improvement resources page.
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Department Media Contacts: Communications Director Patty Sullivan at patty.sullivan@alaska.gov or (907) 269-6368. Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.