Special Publications

Tehama County CONTRACTORS GUIDE 2014 23 California's Contractors State License Board (CSLB) is stepping up consumer protection efforts by launching a concerted campaign to prevent service and repair companies from cheating unsuspecting customers, especially older adults. CSLB is partnering with local district attorneys, the Better Business Bureau (BBB), and industry leaders in the warm-air heating, ventilating, and air-conditioning (HVAC) sector to address an epidemic of companies that promise low-cost duct cleaning and other routine maintenance, and then up-sell services or insist on replacing an entire system through high- pressure sales, false statements, and scare tactics. "In addition to weeding out predatory contractors, this campaign aims to protect and uphold the reputation of more than 11,000 licensed and honest HVAC contractors," said CSLB Registrar Steve Sands. CSLB and its partners have begun their campaign with educational HVAC workshops to help remind contractors about California's service and repair contract laws and requirements, including a customer's three-day right to rescind a home improvement contract. There are two types of service contracts that apply in HVAC cases: 1. A service and repair contract for immediate repair of an existing system where the repair value is $750 or less, and 2. Repair work that will cost over $750, which becomes a home improvement contract and requires that the contractor not take a deposit for more than 10 percent of the contract price or $1,000, whichever is less. Under a home improvement contract, subsequent payments beyond the deposit must be commensurate with the work performed. It is important to remember that if the customer makes the call for emergency service and repair work and signs a contract for the technician to immediately begin work, the three-day right to rescind the contract no longer applies. If, however, the work is expanded from the initial request or the contract exceeds $750, the home improvement contract law goes into effect. For an emergency repair that happens to exceed $750, the three- day right to rescind the contract can be waived only if the buyer gives the seller a separate statement that is dated and signed, describes the situation that requires immediate remedy, and expressly acknowledges and waives the three-day right to cancel the sale. "Don't rush into signing a contract," said Sands. "If a company representative claims that significantly more work or repairs are necessary, first get three or more bids for identical work from other licensed companies to compare information, the recommended work, and the cost." CSLB says it is also vital to obtain permits and work inspections from the local building department to make sure the system is operating properly to save both energy and energy costs for the customer. CSLB's tips for safe and fair contracting: 1. Hire only state-licensed contractors. 2. Check a contractor's license number and status online at www.cslb.ca.gov or by calling 800.321.CSLB (2752). 3. Get at least three bids. 4. Get three references from each bidder and review past work in person. 5. Make sure all project expectations are in writing and only sign the contract if you completely understand the terms. 6. Confirm that the contractor has workers' compensation insurance for employees. 7. Never pay more than 10% down or $1,000, whichever is less. Don't pay in cash. 8. Don't let payments get ahead of the work. 9. Keep a job file of all papers relating to your project, including all payments. 10. Don't make the final payment until you're satisfied with the job. If you suspect a company of unscrupulous business practices, submit a Consumer Complaint form to CSLB, which is available at www.cslb.ca.gov or 800.321.CSLB (2752). CSLB Turns Up the Heat on HVAC Rip-Offs

• Cover