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Consumers in California Warned About Fly-By-Night Contractors

As residents of California survey the damage from recent wildfires and seek expertise in repairing and rebuilding their homes, the Building Industry Association of San Diego County has prepared and issued public service announcements on how consumers can protect themselves from fly-by-night contractors.

“We want to make sure that people interested in rebuilding their homes ask the right questions to protect themselves from possible fraud,” said Kent Aden, the association’s president.

Among the questions that the association is advising home owners to ask before they hire someone to rebuild their property:

• Does the contractor have a permanent business location and a good reputation with local banks and suppliers?

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• How long have they been in business? It usually takes three to five years to establish a financially sound business.
• Are the contractor and any designated subcontractors licensed, if required in your jurisdiction? (Californians can contact the Contractors State License Board at 800-321-2752 to check for any outstanding complaints.)
• Does the contractor have proof of workmen’s compensation and general liability insurance? If not, you may be liable for any construction-related accidents on your premises.
• Will the contractor provide you with names of previous customers? Ask if they would hire the same contractor again.
• Have you seen the contractor’s work, both completed and in progress? Check for quality of workmanship and materials.
• Are you able to communicate easily with the contractor? Misunderstandings during the course of a project can lead to cost overruns and delays.
• Do you feel comfortable with the contractor?
• Will the contractor provide a complete and clearly written contract? Make sure you understand all the terms of the contract.
• Does the contractor currently have any legal action pending against him?
• Is the contractor’s bid comparable to others? You should get at least three competitive bids.

Consumers are advised to be wary of anyone who says a contract isn’t necessary or who asks to be paid for the entire job up-front or to pay cash to a salesperson instead of a check or money order to a company.
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