Hiring a Contractor After a Natural Disaster

• Take your time hiring a contractor, but do not wait to address water damage (such as removing carpet and sheetrock so that mold does not accumulate—be sure to photograph everything for insurance and FEMA claims first).
• Ask friends and family for referrals.
• Check the Better Business Bureau and other resources in your area to verify that they are licensed and don’t have poor reviews.
• Ask for references—both written letters and phone numbers of satisfied customers that you can call and speak with yourself to verify they are trustworthy.
• Get more than one bid on the work you need to do.
• Always get any bid in writing.
• Ask about the warranties offered and get any warranties in writing.
• Hire a local contractor or professional.
• Hire a bonded, insured contractor licensed/registered to work in your city.
  • Ask for copies of the contractor’s general liability insurance declarations page, and keep a copy for your records.
  • Ask for a copy of the contractor’s bond if your city requires one.
  • Check with the appropriate department in your city to determine whether the contractor is registered to perform work in your city (if required).
• Contact your city and determine whether a permit is required for the work being done at your home.
• Make sure your contractor obtains a local building permit, if required, for the specific work being done.
• Ask for a copy of the permit if one is required to perform the work in your city.
• Get bids, contracts, and repair plans in writing and keep copies for at least two years after the repairs are concluded.
• Ask the contractor to provide a lien waiver for subcontractors before starting the job if they plan to use subcontractors.
  • With a lien waiver, the contractor will remain responsible for paying their subcontractor, and the subcontractor will not be able to sustain a lien on your home to be paid by a contractor who fails to pay them.
• Establish a timeline for the repairs in writing.

• Don’t let a contractor force you to hire them until you have thoroughly investigated them, but remember that in the wake of a disaster, their services will be in high demand.
• Don’t hire a contractor that solicits your business.
  • Unsolicited phone calls, door knocks, or phone calls are usually from unsavory maintenance specialists and contractors.
• Don’t automatically choose the lowest bidder.
• Don’t pay a premium. Don’t let someone offering to “help” take advantage and charge you more than what is fair.
• Don’t pay in cash.
  • Scammers or Chuck-In-A-Truck fly-by-night contractors often ask for cash because they know it cannot be traced once you give it to them.
• Don’t pay in full upfront.
  • Typically, pay no more than 1/3rd up front.
  • Once you are satisfied with the contractor and feel you can trust them, you can pay an additional 1/3rd after they have completed 1/3rd of the job.
  • Never pay the final 1/3rd (or pay in full) until the job is done to your satisfaction.
• Don’t sign your insurance check over to a contractor.
• Don’t take the contractor’s word that it is licensed/registered to work in your city or bonded. Require them to show you their paperwork and verify their insurance yourself.
• Don’t verbally agree to any increase in the cost of the work; if there is a reason to agree, document the change in the total amount in writing.

Do:

• Contact an attorney right away.
• If you do not know an attorney, contact the State Bar of Texas Lawyer Referral and Information Services or one of your local lawyer referral services.
• Contact your local legal aid office if you cannot afford an attorney.
• Contact and file a report with your local law enforcement agency. Contact your local district attorney's office if the agency cannot help you.
• Leave honest reviews of issues you have had with contractors on reputable crowd-sourced review websites such as Angie’s List and the Good Contractor’s List.

Don’t:

• Give any more money to the contractor.
• Delay—the longer it takes to find help, the more likely you will not find the contractor who took advantage of you.

• Better Business Bureau
• Angie’s List
• Good Contractor’s List
• National Disaster Legal Aid
• State Bar of Texas Lawyer Referral and Information Service, 800-252-9690
• Lawyer Referral Service of Central Texas, Inc., 866-303-8303
• Dallas Bar Association Lawyer Referral Service, 214-220-7444
• Houston Lawyer Referral Service, 713-237-9429
• Legal Aid of NorthWest Texas, 855-548-8457
• Lone Star Legal Aid, 800-733-8394
• Texas Rio Grande Legal Aid, 833-329-8752
• Texas Legal Services Center, 800-622-2520
• Office of the Attorney General Consumer Protection Division, 800-621-0508