Pennsylvania contractors must register with state attorney general

Last year, the Pennsylvania Legislature passed the Home Improvement Consumer Protection Act as a way to help state residents avoid problems with shady home-improvement contractors as well as to impose criminal penalties on pros who commit fraud. The law goes into effect on July 1.

As part of the legislation, contractors who perform $5,000 or more a year in jobs are required to register with the state attorney general's Bureau of Consumer Protection, keep minimum insurance coverage, and use contracts that contain the start date and completion date of a project, a description of work being performed, and the clients' legal rights.

Contractors in the Keystone State must register by July 1; they can register online and get a license number issued by the end of the day. Consumers can also visit the same site to check whether a contractor has registered.

With home contractors regularly atop lists of consumer complaints, as they are in Westchester County, New York, Pennsylvania is one of several states attempting to crack down on fraud. Last fall, New York State launched the Know Your Contractor Web site so consumers can avoid getting ripped off by home-improvement pros.

Sears recently debuted the ServiceLive Web site that allows you to search for contactors, check their compliance with licensing and insurance requirements, and read or submit user reviews, similar to Angie's List.—Gian Trotta

Essential Information: When you're planning a project at your home. Use our advice to choose a contractor and avoid common kitchen and bathroom remodeling mistakes. Also visit the Contractor's License Reference Site to see license requirements for each state.

By the Numbers: More U.S. homeowners drowning with underwater loans

8.3 million

Number of U.S. homeowners with mortgages whose homes are worth less than their loans, according to an analysis by First American CoreLogic that was reported on by CNN. The number means that about 20 percent of mortgages are underwater.

Eight percent of all mortgages are delinquent, and 6,600 homes go into foreclosure each day, says the Center for Responsible Lending; foreclosures could total 8.1 million by 2012. Some banks suspended foreclosures, but the moratoriums are set to expire this month.

Essential information: A variety of scammers and foreclosure vultures are targeting distressed homeowners, while foreclosure auctions are front-page news. You'll find advice for dealing with mortgage problems at Defend Your Dollars.org. If you don't need a life vest and instead want to invest, see our tips for buying foreclosed property and choosing a home inspector.

In Westchester County, some contractors have built a bad reputation

Most of the contractors I've dealt with have been upstanding citizens, but in Westchester County, New York, home-improvement pros again headed the 2008 top-10 list of complaints filed by residents there, according to a March 3 release from the county's Department of Consumer Affairs.

Home-improvement contractors were the subject of 357 of the more than 1,500 complaints the department received. The county issued 121 summons to unlicensed contractors and began enforcing a new law that allows for the seizure of tools and trucks. Gasoline sales, furniture stores, specialty services (including collection agencies and home-security companies), motor-vehicle sales, heating-oil companies, food stores, professional services, utilities, and department stores made up the rest of the list.

To try to avoid hassles on your next project, use our advice for hiring a contractor, finding a handyman, and choosing between a contractor or the services at a home-improvement center. And learn how to keep yourself from getting scammed by burglar-alarm companies, duct-cleaning services, and chimney sweeps.—Gian Trotta

Essential information: Read about New York State's Know Your Contractor Web site, launched last fall to help consumers avoid getting ripped off by shady pros.

With new budget, Obama urges focus on the foundation. Decorators ask, Where's the love?

"There are times when you can afford to redecorate your house, and there are times when you have to focus on rebuilding its foundation," said President Obama on Thursday before proposing his 10-year budget, "A New Era of Responsibility."

You could have almost heard a pushpin drop.

The president is known for his oratorical flourishes, but this one must have come as a punch in the gut to the nation's decorators. If Hilary Sopata, president of the Illinois chapter of the American Society of Interior Designers, was disappointed, she didn't let on. "People might be putting their major decorating projects on hold," she said, "but they can still take a simplified approach by changing paint colors, accessorizing, adding a few small furnishings, and updating the lighting." Sopata adds that consumers who want to make their homes more beautiful and help the economy should buy American-made products.

The folks who rebuild foundations must be feeling pretty good. But then, "it's always a good time to fix your foundation," says Andrew Rehner, general manager of The Basement Guys, in Toledo, Ohio. Rehner is vice president of the National Association of Waterproofing and Structural Repair Contractors, whose professionals nationwide perform free inspections. "They might find something small that can be corrected fairly inexpensively before it gets bad," explains Rehner.

Early spring is the ideal time for an inspection, especially in cold-winter climates, because snow melt often leads to water being trapped against the foundation walls. "That's when a lot of foundation problems rear their head."

If only solving the nation's economic problems were as obvious.—Daniel DiClerico

Essential information: Read our spring maintenance checklist to identify common trouble spots and use our interactive Home Improvement Guide to target the most cost-effective projects.

Sears' ServiceLive intends to take the hassle out of hiring pros

Hoping to simplify the often arduous task of finding qualified, reputable pros for your home projects and repairs, Sears Holding Company announced the beta launch of ServiceLive.com today. "We have created a marketplace that puts the homeowner back in the driver's seat by allowing them to name the terms and manage the process completely online," said George Coll, president of ServiceLive. "It benefits service providers as well by creating job opportunities and enabling speedy payment."

Here's how it works: After you enter your ZIP code on the ServiceLive home page, you select the category and type of work, choose from a list of rated and unrated contractors you're willing to work with, and provide a detailed description of the project; you can even include pictures and other documents to help describe the job.

You also indicate how much you're willing to spend on labor and materials and when you want the job done. If you have no clue how much it costs to do a certain job, you can get pricing guidelines from the site. (ServiceLive makes its money from your $10 per-job posting fee, waived until the end of this month, and the 10 percent commission it gets from contractors for completed work.)

The first contractor to accept your conditions gets the job. Instead of the customary one-third payment schedule—with payments made at contract signing and at the start and completion of the work—you deposit funds into your ServiceLive account with a credit card or through an electronic-payment system. The contractor gets paid when the you're satisfied with the job. At the end of the work, you fill out a user review, which should help others find the good pros and avoid the bad ones.

ServiceLive said that it has spent the last year recruiting and conducting background checks on service providers. So far, 9,000 pros have been vetted, and another 23,000 have registered. Searches for roofers, painters, and contractors near our Yonkers, New York, headquarters produced lists of pros, but few had user reviews. That should change as more people use the site.—Gian Trotta

Essential information: Use our tools for hiring a handyman and read our scam alerts for chimney sweeps, duct-cleaning services, and alarm companies. And check the Better Business Bureau's new report on the complaint rates of more than 5,000 different service businesses.

The latest "rage" in England: Appliance repair

Getting a malfunctioning appliance fixed has frustrated many people, but the record for most outrageous repair-related rage might be held by a 42-year-old woman from northern England. On January 13, Tracey Fox attempted to hold the "engineer"—Britspeak for repairman—hostage until he fixed her long-broken washing machine, reports the BBC. “I’m not proud of my actions,” Fox said, “but I felt there was no other option.” The situation ended without incident after the police showed up. Fox told the UPI that the retailer has offered a free replacement for her washer, which was less than a year old and still under warranty. (The washing machine shown is not Fox's.)

Fortunately, there are less dramatic options when it comes to dealing with your appliances. To try to avoid repairs in the first place, follow this room-by-room advice on appliance upkeep. If one of your appliances is on the blink, use our repair-or-replace information to determine whether you’d be better of fixing a machine or buying a new one. And when you do need to find a handyman, use our tools for hiring a pro.—Daniel DiClerico

Firewood and wood pellets become a hot commodity

As stock indices worldwide declined this fall, prices for firewood and wood pellets climbed. So too is the number of reported incidents of stolen wood in central Maine. In 2008, according to the Kennebec Journal, there have been seven reported thefts of wood, up from two in 2006. The thieves take trees awaiting shipment to mills and cut it into firewood for eventual sale to consumers.

Throughout the Northeast, skyrocketing fuel costs have lit a fire under the firewood business. The demand is sparking severe shortages ahead of the home-heating season, says Sarah Smith, forest-industry specialist at the University of New Hampshire cooperative extension. "If I called up 10 folks in the firewood business and asked them for a cord of dry wood, they'd all laugh," she says.

The firewood shortage started this summer, when soaring oil prices motivated more people to consider heating their homes—€”or supplementing their oil, natural-gas, electric, or propane heat—€”with wood. "The loggers and firewood producers who were predicting and processing wood based on their usual demand couldn't accommodate all these people, many of whom hadn't burned wood in the past," says Smith.

Dwindling supplies have led to higher prices. Customers are paying up to $250 for a cord of green wood, material that hasn't been sufficiently dried for burning. Two years ago, the same cords were going for as little as $100. Those lucky enough to find seasoned dry wood can expect to pay at least $350 for a cord, says Smith.

A similar trend is affecting the cost of wood pellets used in pellet-burning stoves. "Prices are definitely higher," says Leslie Wheeler, director of communications for the Hearth, Patio & Barbecue Association. Although actual costs vary by region, she says the average is $250 to $260 per ton of pellets. An October 1 article in the Bangor News put the average price per ton at $300. Two years ago, the United States Department of Energy listed the average price as $190.

There are ways to try to save on wood and pellets. Buy wood pellets in bulk, for instance. For cordwood, Smith advises checking the local papers and sites like Craigslist for deals. But, remember, the short supply of firewood provides an opportunity for shifty suppliers. To keep yourself from getting burned, follow these tips:

• Request the right wood. Maple, oak, cherry, and other hardwoods burn longer and cleaner than softwoods like pine, aspen, and poplar. Softwoods tend to create more creosote in the chimney; if you don't eliminate the creosote regularly, it can become a fire hazard. The Wood Heat Organization's Web site includes a list of the best-burning species and helpful tips for building and maintaining wood fires. Tip: Don't get ripped off by a scamming chimney sweep.

• Get what you pay for. A full cord measures 128 cubic feet, or a stack roughly 4 feet high x 8 feet long x 4 feet deep. A face cord is 4 feet high x 8 feet long and as deep as the individual logs—typically 16, 20, or 24 inches, depending on the dimensions of the fireplace or stove. Be home when the wood is delivered and have the vendor identify in writing the type of wood you're getting. Wood species can be difficult to identify. Hardwoods tend to be denser than softwoods, so a simple heft test can provide a helpful clue. Also, many softwoods have a telltale piney scent. Well-cured wood is grayish on the end, with radial cracks.

• Have the vendor stack the logs. You'll pay more for the service, but you will be able verify how much wood got delivered before the delivery guy drives away. Be on the lookout for loose stacking, which is a trick crooked vendors use to short-change unsuspecting customers. If you've ordered a face cord, check that the logs have been cut to the specified length. To prevent termites and other insects from invading your home, stack firewood away from the structure, preferably in a sunny, exposed spot; you can use a plastic tarp to keep the top layer dry.

• Obtain a receipt. The bill of sale should include the vendor's contact information, the sale date, the type and quantity of wood, and the purchase price. A reputable vendor won't object to the request.—”Daniel DiClerico

Essential information: Before you light a fire or turn up the thermostat, read these tips for locking in the heat.

New consumer-protection site targets shady contractors

In late September, a crooked home-improvement contractor in upstate New York was arrested for reportedly having swindled more than $80,000 from of an 88-year-old widow.

Hoping to prevent other Empire State residents from falling victim to dishonest contractors, the New York State Office of the Attorney General has launched the Know Your Contractor Web site. The site covers most geographical areas of the state, including upstate regions, where there are no licensing requirements for contractors.

Many people vet contractors by running a background check with the Better Business Bureau, and that advice still stands, says John Milgrim, a spokesman for the attorney general's office. But the New York State site aims to provide several compelling features by:

• listing the name of the principle as well as the name of the company. "In the past, if a contractor got into trouble, he could change the name of his company and start doing business in the next town over," says Milgrim.

• reporting only substantiated claims against contractors, thereby protecting reputable contractors, who make up the majority of the pros out there.

• including consumer complaints and court judgments, so you can find out what your prospective contractor actually did or didn't do,

• and offering helpful hints for homeowners looking to hire a pro. The tips are consistent with our own advice on choosing a contractor.

"This [site] is a simple solution to a systemic problem, and the Attorney General's Web site is an essential first stop for anyone in the market for a home improvement or repair," said Chuck Bell, director of programs for Consumers Union, the nonprofit publisher of Consumer Reports, who attended the launch event for the site with several New Yorkers victimized by scamming contractors.—Daniel DiClerico

Essential information: Once you hire the right contractor for your project, find the best products and appliances using our exclusive interactive Home Improvement Guide.

Scam Alert: Avoid “dirty” duct cleaners

The scenario: You get a flyer in the mail from a company offering to clean the air ducts at your home for only $99. Intrigued by the low price, you contact the company and set up an appointment.

When the company arrives at your house, the rep tries to sell you on a bunch of other services, including carpet cleaning or mold remediation, to improve the air quality inside your home. If you don’t bite at these invoice-increasing items, he gives your ducts a cursory cleaning before moving on to the next mark somewhere in your area.

That lowball offer should have been a red flag to avoid that firm. A reputable company will charge $400 to $1,000 to clean the ducts in a typical 2,000-square-foot house, says the National Air Duct Cleaners Association (NADCA). A quality job should take two pros, who’ll use specialized tools, about 8 to 15 hours to complete.

Even more important to know is that there’s no proof that cleaning ducts prevents health problems, according to the U.S. Environmental Protection Agency. Nor do studies conclusively show that dirty ducts increase levels of airborne particulates in a home. Still, there are times when you should get your ducts cleaned:
• Have the ductwork cleaned if it contains visible mold buildup or has debris coming out of supply registers, or if the ducts are infested with vermin. Check for problems by removing the registers and shining a flashlight into the ductwork.
• Consider having your ductwork professionally inspected if someone in your home is suffering from unexplained allergies or illness. Before you do that, however, a doctor should rule out other causes.

To find a reputable duct cleaner, get referrals from the company that services your furnace. You’ll also find NADCA member contractors in your area on the association’s Web site. Before you sign a contract, ask for evidence of contamination, including a lab report if mold is a concern. And be sure the company cleans the entire HVAC system, including the ducts, heat exchanger, and air handler.

After the work has been completed, insist on a thorough visual inspection—all components of the HVAC system should be free of visible dust and debris. A top-shelf pro might even use remote photography to show you the clean ducts.

Essential information: Read “Filtering the Claims” for information on air purifiers.

Tools for hiring a handyman

If Mae West were around today and in need of some help at her home, it's entirely likely the legendary quotation attributed to her would now read, "A good handyman is hard to find" And she'd be right.

Consumers have never had more or easier ways to find a handyman for projects small and big. Sites like Craig's List offer a digital-age version of the classified ads for metropolitan areas coast to coast, while online sources like Insider Pages, Judy's Book, and Angie's List allow you to read comments and user ratings about handymen and ask questions about someone you're considering hiring. And then there are the big-money franchise operations and handyman-referral companies that promise a roster of prescreened, qualified professionals who would put the "This Old House" gang to shame.

But even with this proliferation of Web resources, hiring the right professional isn't a snap. "Handymen are advertising all over the place," says Sheila Adkins, director of public affairs for the Council of Better Business Bureaus. "They're on the Internet, in the yellow pages. You don't know who's reliable. The best thing to do is use caution."

Even when people hire someone in whom they have faith, the results often belie their expectations. Stories abound of shoddy or incomplete work, pay disputes, messy workers, and more. Home improvement topped the list of most reported consumer complaints in a 2005 report by the National Association of Consumer Agency Administrators and the Consumer Federation of America, and it has consistently ranked among the top three complaints found by the survey  in recent years.

We're not sure whether Mae West ever found the man she was looking for, but there are several steps you can take to ensure that you find and hire a handyman who'll do right by you.

Click on each step below to find the keys to successful hiring—and high-quality work. If you've ever experienced any nightmarish projects with handymen, tell us about them.

Step 1: Create a project list.
Step 2: Start your search.
Step 3: Dig deep.
Step 4: Sign off.