Tips to help you avoid being scammed by a contractor
Owning a home is both gratifying and exasperating. It is possible to do everything just right and still watch things fall apart. Whether it is a drain that needs plumbed or an electrical outlet that needs replaced, there is a contractor for the job. California is home to more than 1 million licensed contractors and like any profession, some are better than others.
“When I recommend a contractor to a client it is normally someone who has been recommended to me by someone I trust,” said Mark Fleckles, a Realtor with East Bay Modern Real Estate in Oakland.
Fleckles says that the first thing he looks for whenever a contractor’s name comes up is whether that person is licensed, and according to Rick Lopes, chief of public affairs for the California Contractors State License Board (CSLB), Fleckles has that first step just right.
Step One: Make Sure Contractor is Licensed
Lopes says that CSLB in Sacramento receives approximately 20,000 complaints against contractors each year. 75 percent of those are filed against licensed contractors while the other 25 percent are against unlicensed contractors. While CSLB has the ability to enforce ethical and legal behavior among licensed contractors, it has no such reach with unlicensed contractors. According to Lopes, it is not at all uncommon for an unlicensed contractor to take a homeowner’s money and disappear. Hiring a licensed contractor gives a homeowner added assurance that she can lodge a complaint with the licensing board if need be.
“If you do nothing else, make sure a contractor has a state license,” Lopes said. “Whether you see an ad online or one is dropped off at your front door, contractors are required to have their state license number in the ad. If they don’t have a license, they must include that fact.”
California state licenses contain either six or seven digits. By going to the CSLB’s site at http://www. cslb.ca.gov/, consumers can plug a license number into a search bar and find out quite a bit about the contractor in question. For example, one could find out if a contractor is working “in class.” That means that someone advertising himself as a plumber would have a plumber’s license rather than a mason’s license. The site also indicates any bonds a contractor carries and if he has employees, how much workers compensation insurance he has.
Step Two:
Count Employees
Lopes says that it is important to know whether a contractor claims to have employees or not.
“If you look at our site and the contractor claims to have no employees but then tells you he’ll be bringing a crew of six along for the job, that’s a red flag. If he’s telling us he has no employees it’s probably because he doesn’t carry workers comp on them. If that’s the case and one of them gets hurt on your property, you’re liable.”
Step Three: Become a Cynic
The one thing scammers have in common, says Lopes, is the ability to say precisely what a homeowner wants to hear. For one homeowner, a low, low price is music to their ears. For another, it is a promise of getting the job done in the shortest amount of time.
Until a homeowner knows better, she should assume the contractor is fudging the truth. Even after she determines that a contractor is licensed, she should check his references to find out what others think of his work.
Step Four: Use Money as Leverage
California state law is very specific about what a contractor can legally ask for. A contractor can request no more than 10 percent or $1,000 as a down payment, whichever is less.
Lopes says that when a contractor asks for more it is a red flag. “Money is your best leverage when you are doing home improvement work. Once you pay someone it is tougher to get them to do what you need.”
Another red flag is a contractor who asks for payment for materials before they are delivered or asks to be paid before the entire project is completed. Doing so is against California law and any reputable contractor would know better.
Lopes recommends that homeowners hold onto the final payment until they are satisfied with the job.
Step Five: Have a Plan in Place
In a perfect world, a property owner would not have to worry about being disappointed by her contractor. In the real world, disagreements happen. Lopes says that the majority of complaints to CSLB involve problems that can be boiled down to a lack of communication. Neither party was entirely clear on what the other party wanted or needed.
If a homeowner does find herself at odds with a contractor or becomes concerned that a job is not going to be completed to her satisfaction, she should first speak with the contractor. For example, if she expected a bathroom remodel to take four days and the contractor is still there after two weeks, they could agree on a finish date, put the date in writing, and both sign it.
In the event an agreement cannot be reached, a consumer can report their contractor to CSLB who will work to mediate the issue.