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CONSUMER ALERT 

It has come to our attention - that (internet only) contractor referral services are showing up everywhere. We caution you to use good judgment when using these services. Some suggest that their participating companies are thoroughly pre-screened. This might not always be the case. Many times it is only a partial screening. We have noted companies listed with other services that although properly licensed, have numerous problems and complaints.
Make sure you are dealing with a legitimate referral service. Find out how long that referral service has been in business. Be sure to ask for a representatives name, a business phone number and a street address so that you may contact that referral service directly. You may also ask them about their screening guidelines and participation requirements.
Find out what "interest" they have in your contract. Most referral services charge participating companies a moderate monthly maintenance fee. Others may charge the contractor an additional "percentage" based on the size of each contract the contractor signs. Many contractor referral services call this percentage a "signing fee" or "win fee". 
If a referral service charges a fee that is based on the size of, or is paid as a result of any "contract", those referral services become "sales agents" for that contractor. Any person, company or service that has a direct monetary interest in the outcome of any contract, cannot be considered as an unbiased or independent source.
Beware of those contractor referral services, that put you through a series of questions in order to build a "client database" on you. Do the salespeople at your local convenience store or shoe store ask you for your personal information or address? Why do these on-line services need to know everything about you in order to assist you?
Remember - The Internet is a tool that is used by many information gathering services to derive statistical information about consumers and their online buying habits.
Make sure the referral service you rely on performs the following checks.

1. Verifies state and local licenses for each participating company?
2. Checks licensing bureaus and reporting agencies for complaints or past problems?
3. Maintains a continuous relationship with licensing authorities to stay current with changing requirements and regulations?
4. Requires companies to have been in business a minimum amount of time (five years) before they can participate?
5. Checks local attorney general's offices for current court action or on-going litigation.
6. Keeps workers compensation and liability insurance certificates on all participating companies?
7. Performs personal interviews at the contractors home or place of business to create a more personal relationship with that contractor.
8. Checks companies business references, such as material houses and product suppliers, to assure their establishment within the business community.
9. Contacts ten customers references for each company to verify job performance and customer satisfaction.
10. Update and document each companies track record and make that information available for a customers personal reference.
 

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