Beware of unreliable contractors

By Deborah Adamson
Advertiser Staff Writer

Chip Abbadessa points to some of the shoddy work done at his office at Castle Professional Center. He found that the wood paneling does not match and that the contractor's crew left putty spots. Jeff Widener • The Honolulu Advertiser Where to check or file complaint Check to see if the contractor is licensed through the state Department of Commerce and Consumer Affairs. Check with the state at 587-3295 for construction licenses. To search for complaints against a particular contractor, go to ehawaiigov.org/serv/cms. To file a complaint, go to the state's Regulated Industries Complaints Office site or call 587-3222. The Building Industry Association of Hawaii checks out contractors before admitting them as members. Call the BIA at 847-4666. Check with the Better Business Bureau for a reliability report on a company. Call 536-6956.

Instead, he said he got comments like this: "Oh, my gosh! I hope you get your money back."

Mismatched wood, unseemly gaps and crooked corners greet customers as they walk in. The reception desk countertop, which was custom-made too big because the contractor measured incorrectly, had to be cut in two. Abbadessa said he hides the break under "papers and trays."

The contractor charged $14,000 and took four months to knock down a wall, build a reception area and perform light plumbing and lighting work. The contractor, who was recommended by a friend, charged less than other bidders' estimates.

"The craftsmanship was shoddy," Abbadessa said. "Unfortunately, that's what people see first."

Remodeling can be a frustrating experience for home and business owners if they hire a contractor whose work isn't up to par. Of course, many contractors are reliable and do quality work on time. Patience and a little bit of legwork can help save you money and spare you possible headaches down the road.

"People don't check," said John Cheung, president of the Building Industry Association of Hawaii and head of CC Engineering and Construction. Before hiring a contractor, you can check the contractor's license and search for any complaints filed against the business.

Check to see if the contractor is licensed through the state Department of Commerce and Consumer Affairs. A complaint against a contractor stays in state records for five years.

Make sure the contractor has the appropriate licenses needed to do the job, Cheung said. "Just because a contractor is licensed doesn't mean he can do plumbing work," he said. There are more than 100 specialty skills. Again, check with the state.

The Better Business Bureau of Hawaii had 82 construction and remodeling complaints in the past year, up a 46 percent from the previous year.

It's better to head off potential problems because getting restitution after the fact is not easy.

There is a state Contractors Recovery Fund that pays consumers who win in a lawsuit or arbitration against a contractor, but there is a monetary limit of $12,500 per contract, said Verna Oda, executive officer of the state's Contractors Licensing Board. Moreover, consumers can get a maximum of only $25,000 in awards from each contractor — and it's a lifetime cap.

A law signed by Gov. Linda Lingle last month makes it tougher to sue, Cheung said. Consumers are required to give the contractor a chance to fix the work or offer compensation before going to court.

In addition to checking licenses and complaint histories, you should check your contractor's insurance. State law requires contractors to carry workers' compensation and liability insurance. Without workers' comp, an injured worker can sue you for damages. Liability insurance covers such things as third-party claims, as when a ladder being used falls and dents someone's car. The contractor should have workers' comp coverage and at least $1 million in liability insurance, Cheung said.

Along with the background checks, it is a good idea to get several references, not just from family and friends but trade associations. Get at least three written estimates for the project, making sure they are on identical project specifications. Make sure the start and completion dates are written into the contract. Get all guarantees, warranties and promises in writing.

The National Association of the Remodeling Industry advises customers to watch for these signs that a contractor may not be reputable: You can't verify the name, address, telephone number, license, insurance coverage or credentials or you're told that a special discounted price is available only if you sign today. Avoid contractors who seem impatient, do not seem to be listening to you and are difficult to reach.

Be wary of contractors who want a big deposit before the work is done, said Paul Kane, former chairman of the Hawaii Remodelers Council and president of Aloha Marketing Manufacturers Representative LLC.

A deposit of 5 percent to 10 percent generally should be enough, he said. A reputable contractor should also set up a payment schedule for you where you pay only after certain work is finished.

Also, try to be specific about what you want done down to the pattern and manufacturer if possible, Kane said. It would minimize disappointment when what you get isn't exactly what you've envisioned. Look for magazine clips of rooms you like to show the contractor.

Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.