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If you're thinking of hiring a contractor to fix your roof or add a lanai or build a deck for your new hot tub, state officials want to help you choose wisely when you hire folks to do the work.
The state Department of Commerce and Consumer Affairs offers consumers some useful tools for checking out the background work records and complaint history of your potential contractor.
Complaints & Enforcement Officer Jo Ann Uchida noted that the number of complaints is rising rapidly, as are the recent Circuit Court judgments against unlicensed contractors.
"We've seen a steady increase," she said. "We've seen a big jump in the number of tip calls."
For the past three fiscal years (from July 1 to June 30), Uchida said, the number of judgments against unlicensed contractors doubled — rising from 25 in fiscal year 2005 to 37 in fiscal year 2006 and 53 for fiscal year 2007.
A review of those judgments shows cases across the Islands dealing with a variety of contractors and type of work: from general construction, concrete, plumbing and electrical work.
Since our homes tend to be both dear to us and our most expensive possession, Uchida said it's important to safeguard the continuing investments and watch out for unlicensed contractors.
While people may be attracted to an unlicensed worker because of the lure of a cheaper price, Uchida said it pays in the long run to choose someone with a good business track record.
"There are some people out there who are flat-out trying to take people's money from them," Uchida said. "Either they do a very poor job or they just don't show up."
By checking with state consumer officials, consumers can find out if the contractors are licensed, how long they've been in business, who are their officers, how many complaints are filed against them, if any, and other information.
A licensed contractor pays taxes and has insurance that will protect you and them if something stops or complicates the job, she said.
Uchida wants to get the word out now when people are starting a new year and getting excited about fixing up their home during the annual Building Industry Association show.
She hopes that will help prevent complaints she usually hears about after a problem develops, such as people who pay "thousands and thousands of dollars" to have someone do a job only they don't show up, or start but don't finish or do shoddy work.
"These are the kinds of horror stories we hear; it pays just to do a little bit of homework."
A check of the information gathered by the department's Regulated Industries Complaints Office shows that these cases get expensive. Over the past 18 months, one case against an unlicensed contractor resulted in a fine of $113,380 and $33,550 in restitution pay.
Uchida said consumers should always check whether a contractor's license number is legitimate and what the complaint history is, which is generally available five years back.
The Web site will show legal action information if a company was sanctioned or fined or had its license revoked. If it's confusing, call 587-3222, or the toll-free number, 800-394-1902, for the Neighbor Islands to find out more.
She said the business name search can tell you who the officers of the corporation are, and the general excise tax license shows you're dealing with a company with roots in the state.
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How to hire a contractor
Tips for consumers hiring contractors from the state Department of Commerce and Consumer Affairs. 1. Hire a licensed contractor. Check if the contractor is licensed, bonded and has the necessary 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 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. 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. 7. Monitor the job and keep good records. Keep a file with the contract, canceled checks, 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 of 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 a newspaper. 10. Do a thorough inspection of the project at its completion. Make sure your walk-through picks up any issues such as incomplete work or corrections that need to be done (paint wrong color, crooked boards, wrong materials used, etc.). |
Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com or 535-2429.
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