Steve J. Bernas: Why it's critical to vet anyone you pay to provide a service to your business

With the spring season finally here and quickly moving into summer, businesses just like homeowners are beginning to focus on improvements both inside and outside their facilities. And businesses are every bit as susceptible to building contractor scams as homeowners.
While being the victim of a scam is damaging to anyone, it is especially true for a smaller business, which is less likely to have the resources to redo shoddy or incomplete work. The business needs its facilities to keep serving customers. And disruptions distract attention from what needs to be done in the business.
 
Always be cautious
Business owners need to be especially cautious of less-than-reputable or unqualified contractors that care more about the money to be made than the service to be performed and offer tempting services at extremely low prices.
We’ve seen complaints to the BBB about contractors covering a wide range of problems, including high-pressure sales tactics, confusion over contract terms, poor workmanship, incomplete job performance and overcharging the agreed upon price.
To protect themselves, businesses should consider themselves consumers just like anyone else buying a product or a service.
The majority of contractors are good people who will deliver quality work on time and within budget. However, there are enough of the bad ones for business owners to be cautious.
 
The Better Business Bureau offers the following tips to help you make wise choices with your business:

  • Deal only with licensed and insured contractors. Investigate the track record of any builder or contractor you may hire. Get a list of recent satisfied business customers in your area and for similar types of work from all prospective contractors.
  • Ask other business owners for recommendations, then check with your Better Business Bureau, www.BBBIt.org, to check the Business Review and BBB rating of any contractor you’re considering hiring.
  • Don’t let anyone rush you into signing a contract. Get written estimates from at least three firms. Ask contractors if there’s any charge for an estimate before allowing them in your home. Ask for explanations of price variations. Don’t automatically choose the lowest bidder and get a copy of the final, signed contract.
  • Beware of contractors who ask you to pay for the entire job upfront. Never give a deposit until you’ve researched the contractor you’re considering. When you make a down payment, it should not be more than one-third of the total price. Pay only by check or credit card — and pay the final amount only after the work is completed to your satisfaction. Don’t ever pay cash.
  • Do not permit work to start without a signed written contract that includes all verbal promises that were made by the contractor. Be sure that the written contract includes a start and completion date, a breakdown of the cost and information about the contractor, including proof of insurance, necessary permits from your city, competency license number, street address, city and phone number.