July 14th, 2007
10:34 am by Sandra F
Consumer Specialists surveyed 1015 US homeowners and found that 66% have used a home improvement contractor for a home improvement project. Of these, 76% (670 homeowners) were either extremely or very satisfied with the results. The average rating was 5.9 on a 7 point scale which is pretty darn high. On the other hand, only a small percentage (5%) were very or extremely dissatisfied.
The survey also attempted to correlate the highest level of satisfaction with how the contractors were found. The highest levels of satisfaction were experienced by homeowners who had a previous personal experience with the home improvement contractor. The next best thing to personal experience seems to be a referral from a friend, family member, or neighbor. Here is the satisfaction breakdown on a scale up to 7.
- previous personal experience - 6.42 / 7
- referral from family, friends or neighbors - 5.96 / 7
- recommendation from another contractor - 5.89 / 7
- advertising - 5.65 / 7
- supplied by big box store - 5.42 / 7
- yellow pages - 5.27 / 7
To quote Fred Miller, president of the company conducting the study:
“Nothing beats personal knowledge or independent referrals to get the best results for home improvement projects … Surprisingly, those that used a home improvement store provided contractor did about the same as those that used advertising as they way they found their contractor.”
Read more at Finding The Right Contractor - Home Improvement Survey Points To The Best Ways by Consumer Specialists.
The survey, “In the beginning”, was commissioned to study how homeowners “approach that critical starting period” in their home improvement projects. No information was posted as to who actually commissioned the survey but “the firm has industry studies for sale and does a broad range of custom research and consulting projects for its clients“.
July 5th, 2007
10:27 pm by Sandra F
This may come as a great shock to visitors to the hire-a-contractor blog here on RenoCheck, but I read a lot of articles about hiring contractors. Here is another article advocating against hiring unlicensed contractors, hardly breaking news. What was new to me was the author’s reference to this news release by Washington State home insurer PEMCO which revealed that 1 in 10 Washington homeowners surveyed would hire an unlicensed contractor, believing this will save them money.
Wrong, PEMCO spokesperson Jon Osterberg warns. Hiring an unlicensed contractor can cost you 100 times your savings and could even put your life in danger. He gives an an example of a homeowner and PEMCO policy holder who hired an unlicensed contractor to build a lean-to carport. This “unqualified” contractor used building materials that were too heavy. He also did not attach the carport to the studs, only to the siding.
The result? The carport collapsed, demolishing the family motor home. Because PEMCO’s engineer was able to determine that the carport wasn’t built properly, the homeowner’s insurance claim was rejected. He didn’t receive a dime, all because he hired an unlicensed contractor with bad judgment.
Of course a home improvement contractor license is not a a guarantee of good judgment, skill or experience … but depending on your city or state, it can provide some protection. In some jurisdictions, contractors are actually tested on building code or their responsibilities under the law to get licensed. Contractors often have to demonstrate proof of liability insurance to be registered which would cover mistakes like the carport collapse. Finally, contractors can be required to contribute to a Home Improvement Contractor Trust Fund which can cover damage or fraud by licensed contractors … but only by licensed contractors and only in cities or states with the appropriate legislation.
Let’s give Mr. Osterberg the final say on using unlicensed contractors:
“These workers might not have current knowledge of building codes and can put your family in danger if the work is not done right …”
“It only takes a few minutes for a homeowner to verify if a contractor is licensed and bonded,” said Osterberg. “It takes much longer to repair shoddy work.”
A few minutes that could save you thousands of dollars … or your life.
Original source article: How not to choose a contractor at the Realty Times
July 3rd, 2007
9:55 pm by Sandra F
2007 NorthEast Remodeler of the Year
The Sullivan Company, Inc, Newton, MA
Sullivan Company profile at the Chrysalis Awards.
2007 Best Kitchen Remodel Under $40,000
Harth Builders, Spring House, PA
Harth Builders profile at the Chrysalis Awards. Photos are before and after.
2007 Best Bath Remodel Under $40,000
Urban Homes Inc., New York, NY
Urban Homes profile at the Chrysalis Awards.
Find an award-winning remodeler in your area at the Chrysalis Awards website.
June 29th, 2007
11:35 pm by Sandra F
It just goes to show you, even mega corporations like Home Depot are not above the law, in Westchester County New York that is. The Westchester Department of Consumer Protection (DCP) has fined Home Depot all of $750 for operating without a HI or Home Improvement Contractor license.
A White Plains NY homeowner, Todd Ruffalo, complained to the DCP that a Home Depot subcontractor demolished his kitchen, dumped the debris in the driveway, but never finished the job. Home Depot countered that the homeowner was “unhappy with the subcontractor and ordered the kitchen work stopped”.
During the investigation, it was discovered that Home Depot’s Home Improvement Contractor license had expired. As Home Depot was operating as the General Contractor here (accepting payment for the job, hiring the subcontractors), it was required to have a license. Home Depot has been fined a total of $2,000 for it’s 3 “unlicensed contractor” violations and has since obtained a valid home improvement contractor license.
The other issue, the unfinished kitchen, remains unresolved. Read more about the dispute, both sides of the story.
By the way, Westchester has a great home improvement fraud deterrent - it publishes an ongoing list of “unlicensed problematic home improvement contractors“.
The criteria for making the list were simple: numerous unresolved consumer complaints, a failure to respond to the county, and no license to work in Westchester. According to Richard Linkowski, deputy director of consumer affairs, the county periodically culls through Pennysaver ads, the Yellow Pages, and other resources to see if they’ve missed any offenders. The current list, he says, is “the worst of the worst. If you’re hiring someone, don’t even think of using these people.”
- Contractor Con Artists
Not the sort of company a national brand like Home Depot should be keeping …
June 25th, 2007
11:43 pm by Sandra F
The California Contractors State License Board (CSLB) continues to crack down on unlicensed contractors. 17 contractors were arrested for operating with out a license in in Amador County on May 30. Statewide Investigative Fraud Team (SWIFT) personnel posed as homeowners in the sting house, inviting contractors to quote on various projects including landscaping, fencing, concrete repair, and even painting. Now comes word that another 30 contractors have been arrested Elk Grove just last week.
These investigations send …
“… a message to law breakers that we are watching what they do and will4 prosecute when appropriate to protect law-abiding contractors and consumers,” said District Attorney Todd D. Riebe. Some defendants will face additional charges, including unlawful advertising and fraudulent use of a license number. Each count of contracting without a license and unlawful advertising is a misdemeanor and punishable by up to six months in jail and/or a $1,000 fine for the first offense. Fraudulent use of a license number may be charged as a felony and is punishable by imprisonment in the state prison and/or a fine up to $10,000.
- Amador County District Attorney’s Office Press Release
Read Contractors State License Board Goes Undercover to Sting Phony Contractors in Amador County at the CSLB website.
FYI, The CSLB runs stings almost weekly due to the extent of the home improvement fraud problem in California . The CSLB investigates 20,000 contractor complaints every year and and helped California homeowners get $36 million dollars in restitution in the 2005-2006 fiscal year. The stings serve to educate consumers and “phony” contractors about California’s home improvement contractor licensing laws.
June 22nd, 2007
3:26 pm by Sandra F
Summertime is a great time to do home improvement projects, but if you plan on hiring help make sure you get what you pay for. NY1 for You reporter Susan Jhun has some important tips to help you choose the right contractor.
Good, easy to digest summary on the dos and don’ts for hiring a home improvement contractor in New York City with tips from DCA Commissioner Jonathan Mintz.
NY1 For You: How To Hire A Contractor For Summertime Renovations. Video only.
April 14th, 2007
12:03 pm by Sandra F
When it comes to hiring a home improvement contractor, the big issue for homeowners is trust.
”NOBODY trusts contractors,” said Jim Quinn — a contractor himself — the co-owner of Thomas Murphy Associates in Port Washington, N.Y., which has been in business 15 years, ”and the process of getting contractors is sometimes a dicey game, because homeowners wonder if they can trust them.”
- Improving Home Improvement, New York Times
So when you hear the J. Arceri Home Improvements horror story (video clip) where one contractor was responsible for $600,000 in unfinished work and damages across 123 New York homes, it just makes you wonder … and maybe trust a little less.
John Arceri, a licensed contractor, was the subject of “dozens” of complaints to the NYC Department of Consumer Affairs over the last 2 years, mostly about unfinished work.
“Many of the homeowners said they did check out his references and there were no complaints against him … he sounded like a perfect gentleman”. He was licensed, “did work in the community … you could see he did excellent work …”
So what happened? According to Mr. Arceri’s lawyer, he used to have a great track record but ran into “financial difficulties” and wasn’t able to honor his commitments.
Fortunately there is a happy ending to this story; the homeowners were able to access to the DCA’s Home Improvement Contractor Trust Fund for reimbursement. That’s $600,000 between 123 homeowners, the single largest payout in DCA history. There were also stiff consequences for the contractor.
“He has given up his contractor license, his sales person license. He has agreed to pay back the trust fund in a series of monthly payments. He has agreed to pay an additional $200,000 if he breaks this agreement. So he’s out of this business for a long time to come.”
– from NY1 News Video
Read the DCA press release about this case. Read Arceri’s Better Business Bureau profile. His Merchant Circle profile - surprise - actually has bad reviews. And not surprisingly, Rip-off Reports has complaints as well.
The last review on Merchant Circle posted April 5, 2007 - a couple of days after the DCA went live - warned consumers that:
He now works at Green Bay Home improvements … If you see this guy or companies Call the cops! He is using fake names now…. come on Chris Smith? J. Arceri has alias all over now !!
Green Bay Home Improvements? Although well intentioned, this reviewer “Tarrell”, whoever he is, may be mistaken. Green Bay (and owner Chris Smith) seem to have been around much longer than this scandal. Maybe someone from that company did try to “rip off” his mother but it probably wasn’t Arceri in disguise. We’ll never know …
Terrel complained that the company had 2 different contracts. Here is the BBB Profile for Green Bay Home Improvements; the company is a Better Business Bureau member. And here is the BBB Profile for Patriot Home Remodeling. It’s not unknown for contractors to operate more than one company in the same line of work (although by-laws in some cities prohibit this, I don’t know if it applies to NYC). Operating or carrying contracts under two different company names isn’t fraud - it may simply be a case of “Doing Business As”.
But it just goes to show you how home improvement contractor fraud, on this scale, captures the public imagination and erodes our trust. So we can see 2 contracts and assume fraud when it might be perfectly legal. Or be literally seeing things (mistaken identity). But how to get that trust for the home improvement contractor industry? The DCA crackdown on contractor licensing and the Home Improvement Trust Fund are great first steps but more are needed. The DCA does a great job but 2 years is still too long and 123 homeowner complaints is still too many to finally put a stop to such bad business. There must be a better way.
Curious about how the HIC Trust Fund works? The money going in actually comes from contractor licensing. When home improvement contractors obtain or renew a license, they either chip in $200 or post a bond … sounds like the “trust fund” tax may be cheaper. With over 10,000 licensed home improvement contractors and salespeople in New York, that’s $2 million a year. Homeowners can receive as much as $15000 from the fund but only if they use a licensed contractor and “if the licensed home improvement contractor they hired did not do the work promised, damaged their home and either went out of business or left town”.
The bottom line: it pays to use a licensed home improvement contractor in New York City.
