SHEBOYGAN FALLS, Wis. — The I-Team told you about a woman who had a verbal agreement with someone she knew for home improvement work.
Wisconsin state law shows verbal agreements or hand-shake agreements are legally binding. From 2021 to 2022, home improvement complaints across the state more than doubled, according to the state's consumer protection bureau.
Last year, the majority of complaints dealt with failure to provide services and materials, deceptive and misleading representations, and poor workmanship.
"Don't take your friend's word for it, and ask for credentials, and also see their work," Sharon recommended.
Sharon said she learned the hard way after not getting her home improvement agreements in writing.
"While verbal agreements are recognized as being legally binding, we certainly encourage everyone to get everything documented in a contract, written down," Michael Domke, Director of the Consumer Protection Bureau said.
It's the number one thing the state's consumer protection bureau said you need to do in order to have the most protection, and the more specific that agreement is, the easier it will be for the state to jump in if things go wrong.
"The name and the address of the person that you're talking to and where they're located. A description of what's going to be done, you really want that detailed in writing so that you're both on the same page. Also, a detailed list of materials being used," Domke explained.
He also said contracts should include the total cost of the project. If you're financing it, a detailed breakdown of individual payments and when they're expected should be included. Contracts should also clearly state a timeline of when the project starts and an estimated finish date.
"Get everything documented in a contract," Domke said.
You'll also want to do your own research on whoever you plan to hire. That means, checking to see if they have the proper licenses required by the state. You can check licenses in Wisconsin, here.
"That's really important because then consumers are gonna want to ask to see that and make sure that they are certified and their licensed and have the proper credentials, and more importantly, have the insurance to back up the work that's being done," Domke explained.
After you've confirmed their credentials and have your contract ready, ask about your rights to request lien waivers.
"Why this is so important is because it removed the responsibility of that consumer from any liability if the contractor should fail to pay for materials or portions of the job," Domke said.
Next, it's time to talk about permits.
"Understand what the local municipalities may require for permitting, in addition to county and state, and then have that discussion with the contractor to understand who's going to get them," Domke said.
Domke said there are risks if you pull permits yourself.
"There are some benefits for the contractor getting them because oftentimes, they should have the liability insurance that carries with it that will cover workers comp in case something were to happen," Domke added.
Lastly, Domke recommends the contractor finish the agreed-upon project before making your final payment.
Wisconsin law also provides protection if a business or person misrepresents themselves or their work to sell a product. That's something you can report to consumer protection.
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