If you are thinking about making improvements to your home, selecting a qualified contractor is the first and most important step in the process. The Federal Trade Commission offers the following tips and checklist to help you along:

• Deal only with licensed contractors. Make sure that any contractor you’re considering has a current license to operate in the area. Check with the City of San Antonio's Planning and Development Services Department or your city or county government office responsible for building inspections. Or check with your local Better Business Bureau to find out if there are unresolved consumer complaints for a contractor on file. Don’t assume that all contractors who advertise in the "home improvement" section of the phone book have a valid license or that they are reputable.
  Contractors for CPS Energy's home efficiency rebates (including Attic, Spray Foam and Wall Insulation; Cool Roof; and Window Screen and Solar Screen Rebates) are no longer required to attend our rebate classes and register with CPS Energy. CPS Energy's Air Flow Performance Rebates and Solar Rebates still require contractors that are currently registered with CPS Energy.
• Ask friends, relatives and co-workers for recommendations. Ask contractors if there’s a charge for an estimate before allowing them in your home. Get written estimates from at least three firms. Ask for explanations for price variations. Don’t automatically choose the lowest bidder.
• Be skeptical of contractors who come to your door unsolicited or offer reduced prices because they’ve just completed work nearby and have materials left over.
• Beware of contractors who ask you to pay for the entire job up front. Your down payment should not be more than one-third of the total price. And remember, only licensed contractors and salespeople can require and accept any payments before the job is completed. Pay only by check or credit card, not cash.
• Be cautious about using your home as security for a home improvement loan. If you fail to repay the loan as agreed, you could lose your home.
• Have a knowledgeable friend, relative or your attorney review the contract before you sign. If you get a loan to pay for the work, consider having these documents reviewed as well.

Ask the contractor for the following information. Use it to check out the contractor with appropriate authorities and previous customers. If the contractor is reluctant to give you this information, consider doing business with another company.

• An unsigned copy of the contract
• A copy of the estimate
• Contractor’s name, street address (no P.O. Box), telephone number, and license number
• Name under which license is filed
• Number of years contractor has had a local license
• Names, addresses and telephone numbers of previous local customers. Ask them about their experiences with the company. If possible, visit a completed job.

Prepared by the Federal Trade Commission. The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.