If there is one area of the law that Texas lawmakers and executives have done little to nothing good for Texas citizens it is protecting us from unscrupulous, predatory, and downright fraudulent business practices that many so called "contractors" engage in to trap unsuspecting homeowners and investors.  Have you been ripped off by a scam artist posing as a home repair and improvement provider?  If you have been ripped off, call Winborne LaFleur PC at 972-330-2171 and ask to speak with one of our attorneys. 

Here are a few things to watch out for before you hire a contractor to do home repairs or renovations at your home:

1. Can the contractor provide you with verifiable references?  Ask the contractor to provide you with at least three to four references from people who purchased similar services. Call those references and if possible, ask to physically go see them.
2. If your contractor has a big fancy website with seemingly perfect pictures, google the pictures.  If any of them appear on other websites you may be speaking to the wrong contractor.
3. Find out if the contractor has a physical place of business and go there.  If the address on a business card is a PO Box or missing, ask if you can visit them at their office.  If they are working out of a garage or barn, then you may be talking to an inexperienced person.
4. If your project requires electrical work or plumbing, go to the website for the Texas Department of Licensing and verify that they are licensed and if licensed make sure they have the proper license.  If for example you hire a contractor to do electrical work, make sure that person's license is not a 10-year old apprentice license.
5. Do not ever rely on a contractor to tell you what permits you need for the work you want to do.  Call the city permit office and ask.  If you do not live in an incorporated municipality, call the county.  If a contractor does not know when to pull permits, that contractor won't know how to keep your project safe and within the code.
6. Ask the contractor for a written agreement.  Make sure the agreement says what you will pay and when the payment is due.  If it is on a percentage of work completed for a home residential project, set clear boundaries as to what those completion percentage milestones are. 
7. If you contractor asks you to pick up something from a supply store or to pay for a deliver because s/he is running late, make sure there is an agreement that the money you pay goes towards the agreed price and is not "extra."
8. Ask for a certificate of workers compensation insurance and make sure you are added as an additional insured.  If your contractor cannot do that, they likely are not the right contractor for you.
9. Get a written warranty.  If the contractor won't give it to you in writing, then you have the wrong contractor.
10. If the contractor starts threatening you with a lien at the first sign of a dispute, you hired the wrong contractor. 
11. If you must pay cash money instead of a cashier's check or electronic transfer, prepare to get ripped off.  Don't do it! 

Know your rights:

1. If you are hiring a contractor to do work on your homestead and the total amount of the contract is over $5000.00, you have the right to ask for a complete accounting of the expenses, labor, and profit the contractor plans to make.  The contractor can still make a profit, but while the job is in progress, your money better be held in a construction account as defined in the Texas property code.  The Texas Property Code contains criminal sanctions for contractors who misappropriate the funds you provided for your job.
2. Texas law requires you to hold back 10% of the total amount billed as "retainage."  You should hold onto that 10% until the time to file a lien has expired.  That protects you from subcontractor liens.
3. Texas recognizes an implied warranty that work done on a home will be done in a "good and workmanlike manner." 
4. If you are married and the work to be done is on a homestead, both you and your spouse must sign the contract before the contractor has materialman and mechanics lien rights.

Suggestions for a successful and less stressful renovation or repair:

1. Have a lawyer review the written agreement.
2. Actually have a written agreement.  If the project must be done by a certain date, get it in writing.  
3. Make sure your contractor knows the law of retainage, construction trusts, and the implied warranty that work will be done in a good an workmanlike manner.
4. Consider a Cost Plus agreement.  Under the Cost Plus arrangement, the contractor is not subject to the Texas Construction Trust Fund Act requirements to maintain a separate account and give you an accounting.  However, you pay the actual cost for materials and labor.  When the job is done, you add up everything spent and pay the contractor 10% of that amount as his/her profit.  Of course you can agree to more or less profit, but it should be in writing. 

The Finishing Nail:

The sad reality is that Texas is infested with bad contractors and rip off artists.  Don't be the next victim. Call an attorney before you hire a contractor and know your rights.  If the contractor does not know or agree to your rights, then keep looking until you find a reputable contractor.  You may pay a little more for your renovation or repair, but it will cost you much less money and heartache than having a legal battle when the project goes terribly wrong.  Call Winborne LaFleur PC at 972-330-2171 if you are contemplating a major home repair or renovation.