By Mary O’KEEFE

In 2013, Home Advisor conducted a survey of over 2,000 adults, of whom 1,314 were identified as homeowners, asking them their fears or concerns when hiring a contractor for home repairs or improvements. Of those surveyed, 50% said they were most concerned about poor workmanship and 36% were concerned about fraud. Those surveyed were also asked what warning signs would alert them that their hired contractor might be fraudulent. Eighty-one percent said if the contractor “demands cash up front” followed by 79% who responded they would suspect fraud if the contractor did not offer a contract or anything in writing. Out of all those surveyed, 56% said they paid their contractor cash.

This is the final article of the CVW three-part series on the Scam Stoppers Town Hall sponsored by Assemblymember Laura Friedman. During the meeting experts spoke on a variety of scams that people often fall victim to including medical scams, scams resulting in personal identification theft, scenario scams and construction/remodeling scams.

Jane Kreidler, outreach coordinator for the Contractors State License Board (CSLB), shared some common scams in the construction fields and gave tips on how those looking for contractors can avoid becoming a victim of fraud.

“Do not do business with someone who solicits you,” she said. “If you need a contractor, go out and find them.”

Kreidler said many times people who come to the homeowner’s door offering their services are often not licensed contractors. She emphasized that, although a non-licensed contractor may be cheaper, there are risks the homeowner takes by hiring them.

“If you hire someone who is not licensed they will not have the appropriate insurance,” she said. “So if someone gets hurt on your property you could be held liable.”

She added contractors who are “playing by the rules” are paying for general liability insurance. It is expected that licensed contractors may be more expensive because they are paying for insurance and meeting other requirements dictated by the state.

Another warning Kreidler had for those looking for contractors is when the contractor, licensed or not licensed, asks for too much money up front.

In the state of California, contractors can ask for 10% of the total cost of the job, or $1,000 – whichever is less, up front. Kreidler warned that some contractors may only ask for 10% up front but then keep asking for larger and larger amounts as the job continues.

“If it is an insurance issue, don’t tell the [contractor] how much you are getting from the insurance company,” she said. “It’s none of their business.”

She added if the homeowner shares their insurance information the contractor often gives a bid that matches that amount.

Fraudsters, and contractors who misrepresent themselves, can sometimes become aggressive toward the homeowner after they are hired. This happens often to seniors, according to Kreidler, who become intimidated by an aggressive contractor.

“Don’t be afraid; file a complaint against them,” she said.

She also advised people to not let contractors help with financing for the job.

“Be careful of financing programs,” she said.

Anyone who is thinking about having some remodeling or other work done that would require a contractor can research information on the CSLB’s website at cslb.ca.gov or contact CSLB for 24-hour information at (800) 321-2752. Anyone who would like a CSLB outreach coordinator to come and talk at an event for seniors can call (916) 255-3273.

  Mary Okeefe