Last updated: December 2005

As you plan for your home repair or improvement project, it is important to ask the right questions to protect your investment. The questions and answers in this fact sheet will help you protect yourself. 

What are some danger signs of a potential scam?
What should I do before a contract is signed?
What are the questions a homeowner needs to ask a contractor?
What are the basic terms that should be included in a contract?
Can I get out of the contract if I change my mind?
What can I do if the contractor only does part of the work?
What should I do if I think I've been cheated?
Checklist
For more Information, Contact:

What are some danger signs of a potential scam?

• Door-to-door salespersons not from your local community who offer to do home repair work for less than others in your area;
• Offers for repair work from a company that lists only a telephone number or a post-office box number as a way of contacting them, especially if it is an out-of-state company;
• When asked, contractors who do not give references;
• People who offer to inspect your home for free. Do not let anyone into your home unless they have real identification showing where he or she works. When in doubt, do not hesitate to call the worker's employer to make sure he or she is telling the truth;
• Contractors asking for cash payments for a job or who ask you to write a check to a person other than the owner or company name;
• Offers from a contractor to drive you to the bank to take out money to pay for the work.

What should I do before a contract is signed?

• Get more than one estimate and get them in writing;
• Do not let anyone pressure you into signing a contract;
• Get the name and address of the business and check old phone books to see how long they have been in business;
• If the contractor does business under a name other than the contractor's real name the business must either be incorporated or registered under the Assumed Business Name Act. Check with the Illinois Secretary of State to see if the business is incorporated or with the county clerk to see if the business has registered under the Assumed Business Name Act;
• Check with your local and county governments to see if permits or inspections are required;
• Never sign a contract that you do not fully understand or with blank spaces in it;
• If you are taking out a loan to finance the work, do not sign the contract before your lender approves the loan.

What are the questions a homeowner needs to ask a contractor?

• Ask whether the contractor will guarantee his or her work and products;
• Ask whether the contractor has the proper insurance;
• Do not sign a certificate of completion or make final payment until the work is done to your satisfaction;
• Get lien waivers. Remember, you should know who is providing the supplies and labor for any work performed on your home. Suppliers and subcontractors have a right to file a lien against you property if the general contractor does not pay them. To protect your property, request lien waivers from the general contractor.

What are the basic terms that should be included in a contract?

• Contractor's full name, address, and telephone number. Illinois law says that anyone selling home repair and improvement services must give their customers notice of any change to their business name or address that happens before the agreed dates for starting or completing the work;
• A description of the work to be done;
• Start date and estimated finish date;
• Total cost of work to be done;
• Schedule and method of payment, including down payment, any additional payments, and the final payment;
• A section explaining when you or the contractor can end the contract.

You should get a copy of the signed contract and keep it in a safe place for reference as needed.

Can I get out of the contract if I change my mind?

Yes, if the sale was made at your home. If the sale was made at your home you have 3 business days from the time you sign your contract to cancel. The contractor cannot deny you this right by starting the work, selling your contract to a lender, or any other method.

What can I do if the contractor only does part of the work?

You have to pay the contractor for work that is finished. But, don’t make the final payment until you are happy with the work and all subcontractors have been paid. If the contractor does not start or finish work within the time period given in the contract, then you may cancel the contract. You may also have the right to get back your down payment or other payments made towards the work. Send a written demand by certified mail to get this refund.

What should I do if I think I've been cheated?

If you think you have been cheated by a contractor or have any questions, please tell your State's Attorney or the Illinois Attorney General's Office. Attorney General Toll-Free Numbers:

Carbondale
(800) 243-0607
TTY: (877) 844-5461
 
Springfield
(800) 243-0618
TTY: (800)964-3013

Chicago
(800) 386-5438
TTY: (877) 675-9339

Checklist

• Before you start, you may want to contact more than one contractor and get estimates from all of them. Ask them a lot of questions and get an idea about the average price of the repair;
• When you interview a contractor, you may want to insist on getting references from him or her. You should also check his or her licenses; 
• Read everything before you sign. Take your time when you read it. Don't leave blank spaces in the contract because a contractor may change a term after you sign it. To better protect yourself, put a date next to your signature;
• You should keep copies of everything you sign;
• In many cities or towns, you must get a building permit before any home improvement can be made. Make sure your contractor gets building permits;
• Do not agree to "Arbitration" Clauses. You will lose your right to go to court if you are unhappy with the work;
• Just say no to credit insurance: it's just not worth it, and doesn't usually cover older folks.  

For more Information, Contact:

Legal Assistance Foundation of Metropolitan Chicago
111 W. Jackson Street, Suite 300
Chicago, Illinois 60604
(312) 341-1070

Consumer Legal Assistance for the Elderly
(312) 431-2110

If you live outside the Chicago metropolitan area and need to find free legal help search the "Helpful Organizations" section below.

Helpful Organizations
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