Hiring a contractor in Wisconsin: your rights and the red flags

Get it in writing

Under Wisconsin's home improvement rules (ATCP 110), the contract must be in writing if you pay anything before the work is finished, or if the contractor came to you, say by knocking on your door. Any changes to the contract must be in writing too.

A written contract has to include:

• the contractor's and salesperson's names and addresses
• a description of the work and the materials
• the total price, including any finance charges
• the dates the work will start and be finished
• any warranties

You must get a copy before work starts or before you pay anything. If the start or finish dates change, the change only counts if you agree to it in writing. If the contractor misses the dates, you can cancel and get back money that hasn't been spent on your job.

Permits come first

The contractor has to tell you which permits are needed before you sign, and can't start work until every required state and local permit is issued. In the City of Madison, a contractor pulling a building permit for a house also needs Wisconsin's Dwelling Contractor certification. Our permit guide covers which projects need one.

Protect yourself from liens

In Wisconsin, subcontractors and suppliers who aren't paid by your contractor can put a lien on your home, even if you've paid the contractor in full. That's why your contract should include a lien notice, and why the contractor must give you a "Notice of Consumer's Right to Receive Lien Waivers" before you sign.

The protection is simple: ask for a lien waiver every time you make a payment, from the contractor and from the subcontractors and suppliers on the job. Don't make the final payment until you have them, along with proof of the contractor's insurance.

Your three-day right to cancel

If you agreed to the work somewhere other than the contractor's place of business, such as at your kitchen table, you generally have until midnight of the third business day to cancel. Cancel in writing, keep a copy, and send it by certified mail so you can prove when you sent it. The contractor must give you a written notice of this right, and the clock doesn't start until they do. Your money must be refunded promptly after you cancel.

After storm damage there's an extra protection: if your insurer denies all or part of the claim, you can cancel within three business days of hearing from the insurer.

Red flags

Wisconsin's consumer protection agency (DATCP) warns about these:

• Door-knockers after a storm. Be wary of anyone who shows up uninvited, especially with out-of-area crews and pressure to sign today.
• Pressure tactics. It's illegal to start work or drop off materials to pressure you into a contract.
• Scare tactics. Contractors can't falsely claim your home is dangerous or needs repairs it doesn't.
• "We'll cover your deductible." Contractors can't promise to pay all or part of your insurance deductible, and they can't negotiate with your insurer for you.
• Asking you to sign off early. No one may ask you to sign a completion certificate or make the final payment before the work is done.
• Claims they can't back up. Misrepresenting being licensed, bonded or insured is illegal. Ask for a certificate of insurance.

Check them out before you sign

• Look up the contractor's state credentials with Wisconsin DSPS's online license verification search.
• Ask for a certificate of insurance and two or three recent local references you can call.
• Get at least two written estimates for the same scope of work.
• Prefer contractors with a local address and a track record. Browse general contractors, roofers, painters and more in our directory, with the communities each one serves.

If something goes wrong, file a complaint with DATCP's consumer protection hotline at (800) 422-7128 or online.