Building Smart - Navigating Contractors

Whether you’re building from scratch, renovating, or just making a few upgrades, dealing with contractors can make or break the process. Today, we’re focusing on what you need to know to hire, manage, and avoid pitfalls when working with contractors.

The contractor you choose will determine whether your project is smooth sailing or an absolute nightmare. Here’s how to make sure you’re hiring the right person for the job:

• Check Licensing & Insurance—Never assume they are licensed and have insurance.  Always verify if the license and insurance are current and active.

• Get References: Ask for past client testimonials. If they hesitate, that’s a red flag.

• Compare Quotes, But Not Just Price: The cheapest bid isn’t always the best—sometimes it means cutting corners. Look at quality, timeline, and reputation.

Once you find a contractor, lock in the details with a written contract. Here’s what it should include:

• Detailed Scope of Work: Clearly outline what will be done, and by when.

• Payment Terms: Never pay the full amount upfront. A structured payment plan keeps everyone accountable.

• Penalties for Delays: Mississippi weather can be unpredictable, but long delays without reason? No excuses. Set expectations early.

• Regular Check-Ins: Schedule weekly updates to track progress. A good contractor welcomes communication.

In Mississippi, the Prompt Payment Act ensures timely payments to subcontractors and suppliers. If a contractor fails to pay as agreed, the affected party can file a mechanic’s lien against the property to secure payment.

No project is perfect, and sometimes problems arise. If you’re facing delays, budget overruns, or poor workmanship, here’s what to do:

• Talk First, Escalate Later: Misunderstandings happen. Communicate concerns before making drastic moves.

• Document Everything: Keep a log of conversations, emails, and contract amendments.

• Know Your Legal Rights: If a contractor fails to meet obligations, Mississippi law has consumer protection measures in place.

Mississippi Contractor Fraud Laws

Here’s what you need to know about fraud:

• Criminal Fraud (Home Repair Fraud): Under Mississippi Code § 97-23-103, a contractor commits fraud if they:

• Misrepresent material facts about the contract or the property.

• Use deception or false promises to get hired.

• Fail to complete work as agreed or intentionally mislead homeowners.

• Misrepresent their business identity.

Depending on the severity, contractors guilty of fraud can face fines and imprisonment.

• Civil Fraud (Consumer Protection & Financial Fraud): Under Mississippi Code § 97-19-83, financial fraud includes:

• Obtaining money or services through false pretenses.

• Using deceptive business practices to secure payments.

• Transmitting fraudulent claims across county or state lines.

What You Can Do: If you’ve been scammed, you can file a civil lawsuit to recover damages, including financial losses and contract breaches.

Contractors must follow Mississippi’s construction and environmental laws, including building codes, waste disposal, and pollution control. Violations can result in fines, project delays, and potential lawsuits.

If you experience issues with a contractor, here’s how to take action:

• File a complaint with the Mississippi State Board of Contractors (MSBOC).

• Seek mediation or arbitration before heading to court.

• Pursue legal action for breach of contract or fraud.

Smart Building Starts with Smart Hiring

Contractors can be your best asset or your biggest headache—it all depends on how well you do your homework. In Mississippi, taking the right steps upfront can save you from costly mistakes. If you suspect fraud, knowing your legal rights is key.