Construction / Building In the News

[HADave]

As reported in the West Hawaii Today- Online issue, Sunday, August 6th, 2006


Consumer Affairs Launches Educational Campaign on Hiring a Contractor


The Department of Commerce and Consumer Affairs is stepping up efforts to protect consumers against unlicensed contracting with a new public education and awareness campaign.

The departments Regulated Industries Complaints Office launched its "Hire a Licensed Contractor Campaign" this month, which highlights the importance of hiring a licensed contractor. Licensed contractors are insured, and if anything goes wrong, there are laws in place to protect consumers.

The department is reaching out to Hawaii consumers with a 30-second television spot, a new web address and a tool free number for information.

"Homeowners need to beware of phony contractors," said Jo Ann Uchida, RICO's complaints and enforcement officer. "Even if someone provides you with a license number, it is important to check whether the number really belongs to that person and is current. We have had cases in which phony contractors 'borrow' license numbers that belong to others, or use totally fictitious numbers to convince consumers that they are legitimate bussiness people."

RICO's top 10 tips for consumers are as follows:

1. Hire a licensed contractor. Check licensure and prior complaints history by calling 800-394-1902 or online at http:/licensedcontractor.hawaii.gov . Confirm the contractor is licensed, bonded and has the neccesary insurance coverage to operate.

2. Know how much you can spend. Fix your budget in advance and keep some in reserve to pay for changes or unanticipated costs.

3. Shop around. Get at least three bids or estimates. Make sure the bids are all based on the same work and the same materials. If bid amounts vary significantly, ask why.

4. Ask for references. Call trade organizations or ask friends or relatives for for referrals. Ask to see other projects the contractor has completed and to meet other clients.

5. Insist on a written contract. Among other things, a written contract should include the contractor's license number, price, start and stop date, the work to be performed and the materials to be used. Get any promices, guarantees or warranties in writing.

6. Make sure your project is in compliance with city and county codes. If a building permit is required, ask the contractor who will be responsible for the permitting process. Know the risks and responsibilities of a "owner-builder" project.

7. Monitor the job and keep good records. Keep a file with the contract, canceled checks and correspondence. make sure any change orders are in writing.

8. Pay as you go. Set a payment schedule that follows the amount of work completed and avoid paying all the money up-front.

9. Know who your subcontractors are and avoid liens. Request partial lien releases for partial payments and a final lien release for final payments. Make sure a notice of completion is published in the newspaper.

10. Do a "walk-through" and take care of any "punch-list" items immediately.


For more information, call Christine Hirasa, Consumer affairs spokeswomen, at 586-2622 or send email to chirasa@dcca.hawaii.gov

Copyright West Hawaii Today, 1997-2006



Edited by - HADave on 08/07/2006 03:03:20

[Hotzcatz]

Aloha Dave,

This is a good article with good timing. As construction slows down, many of the new "contractors" will be going elsewhere and if folks follow these guidelines, hopefully those "contractors" won't be taking clients' money with them.

Another point which the newspaper article wouldn't have been allowed to mention, but as a private citizen I can say, is if I were to be hiring a contractor, I'd hire one who had been in business since 1990. Folks that have been around since then were here before the last down turn and survived so they aren't as likely to disappear as the newcomers. It might seem a bit of a severe requirement, but when you consider the amounts of money involved in constructing a house, then it doesn't seem severe enough. Even folks that are careful and follow all the guidelines can still get burned and with the construction slowing down, it is much more likely for spurious "contractors" to take the money and run.

This is just addressing the financial factors of hiring contractors, you still have to find one who does good work as well!

A hui hou,
Cathy

[Kapohocat]

On the opposite side of the fence because I know many hardworking contractors that aren't gettign rich and do a good job.... I have suggested to them that they get references from the owners of tradespeople who have worked for them before...