Homeowners are expected to spend more than $270 billion on remodeling projects this year, according to industry estimates. Many will end up with shoddy kitchens or half-done rec rooms.

Home improvement and repair businesses typically are among the top complaint generators, according to the Better Business Bureau. That trend is expected to continue as more homeowners brave remodeling projects to take advantage of a marketplace overflowing with contractors desperate for work.

“The home improvement industry is going to be one of the leaders in the economic recovery as people are fixing what needs to be fixed or getting their homes shined up to compete in the market,” said Fred Elsberry, president of the BBB’s region covering metro Atlanta. “Any time there is a potential growth industry, people come in who are less than stellar.”

Getting a contractor to live up to his promises on the back end can be a Pyrrhic victory. While juries tend to look favorably on homeowners, the time and expense it takes to go to court often isn’t worth the trouble, said Sid Barrett, a senior assistant state attorney general.

“In most residential construction disputes, the amount you are fighting over is less than you are going to pay a lawyer to litigate,” said Barrett, who heads the office’s consumer interest section. “It is just not cost effective.”

While all remodeling jobs are a pain, homeowners who do their research and follow sound advice stand a better chance of being satisfied once the pounding and paint fumes are gone. Here are a few of the basics:

● Get at least two estimates. The BBB offers Request-a-Quote, a free service on its Web site. After completing a few simple steps, consumers receive bids from qualified BBB-accredited businesses that have agreed to uphold high standards and respond to customer concerns.

“We can’t make them do the right thing, but there is a lot of incentive for them to do the right thing.” Elsberry said. “That is the way they differentiate themselves from their competition.”

● Insist on references and follow up with them. Find out if the contractor did a good job, finished on time and stuck to his prices. If there were problems, find out if he came back and fixed them. “If the contractor says no to providing references, run,” Barrett said.

● Do not pay for the entire project upfront. The BBB recommends the 3-3-3 rule — one-third up front, one-third at the halfway mark, the balance after completion. Always pay with a check or credit card so you have proof of payment. Be wary of contractors who try to set you up with lenders or offer discounts for finding other customers.

● Don’t automatically select the lowest bid. “If you go with the guy in the pickup truck, you are taking a huge risk,” Barrett said.

● Draft a contract that clearly defines the scope of work and be as specific as possible. “Otherwise the contractor is going to come to you every 10 minutes saying, this is extra,” Barrett said. He recommended a clause specifying a reputable arbitration sponsor should differences arise.

● Make sure the contractor has liability insurance that covers damage to the existing structure or a worker who gets injured. The insurance will not cover poor workmanship.

● If the remodeling project requires a building permit, make sure the contractor applies for it in his name. That way, if the contractor’s work does not pass inspection, you cannot be held financially responsible if corrections are required. It is illegal for a homeowner to obtain a building permit and hire an unlicensed contractor.

Beginning in July 2008, Georgia began requiring certain contractors pass a two-part exam and be licensed by a board composed of industry professionals and consumers. Contractors who do major structural repairs, electrical work, plumbing, heating and air conditioning work are among those who require licensure.

At the same time, state law exempts a host of “specialty” contractors from licensure, including those who specialize in painting, roofing, sheetrock repair, waterproofing and siding. Home improvement jobs costing less than $2,500 do not require a state licensed contractor.

Consumers can file complaints about contractors with the board as well as research whether licensed contractors ever received sanctions or disciplinary action. The BBB recommends that consumers research its site for histories on particular companies.

“It is incumbent upon us as homeowners to be our own line of defense,” Elsberry said, “to make sure we don’t get taken advantage of.”

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Check our sources

• Better Business Bureau of Atlanta: atlanta.bbb.org
• Home Improvement Research Institute: www.hiri.org
• State Licensing Board for Residential and General Contractors: www.sos.ga.gov/plb/contractors

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