Get it in Writing

If you pay under the table for repairs, construction or home
renovation – than you’re paying more than you think.

Due Diligence

The industry is unregulated in Prince Edward Island, so it is up to the consumer to conduct due diligence when hiring a contractor.

Here are some tips to protect yourself:

■ Write, in detail, the job you want or need done.

■ Get informed. Do you need a permit?

■ Research contractors in your area. Ask your friends and neighbours for names.

■ Get a list of qualified professionals from your local Home Builders’ Association or Better Business Bureau.

■ Get estimates from at least three different contractors and ask them for customer references.

■ Call the references from the contractors you like. Be sure to make a list of questions you want to ask them.

■ Hire a professional contractor. Ask for written contracts and proof of Workers’ Compensation or private liability insurance for injury or damage to your home.

■ Agree on the work you want done, budget, and the timeline.

■ Don’t accept offers for cash deals without a receipt. Paying under the table is no deal – it can leave you with no warranty, no recourse for poor workmanship and no liability insurance if an injury takes place on your property.

■ Get it in writing! If you pay under the table for repairs, construction or home renovation, you are participating in the underground economy – and you’re paying more than you think.

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Contracts

Contracts don’t have to be complicated but they should include:

■ Contractor’s name, address, and phone number

■ Full description of work to be done and materials and products to be used

■ Timeline – when the work will begin and be completed

■ All costs that you will be charged and when you will have to pay (deposit)

■ Amount of payment you will hold back as required by the lien legislation in your province – The contractor’s warranty

■ A certificate from an insurance company providing proof of the contractor’s business liability insurance

■ A letter of clearance from your province’s Workers’ Compensation program confirming the contractor is registered

■ The contractor’s Business Number or GST/HST number

■ The contractor’s business license number (municipal)

The Better Business Bureau (BBB)

To properly complete your due diligence when hiring a contractor, it’s a good idea to check their rating with the Better Business Bureau (BBB) for the Atlantic Provinces. The BBB helps people find and recommend businesses and brands they can trust.
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