AVOIDING HORRORS IN HOME IMPROVEMENTS
By Roman P. Mosqueda, Esq./Realtor
You are interested in making home improvement projects. What would you do? You would hire the services of a contractor to remodel or repair your home. Finding a good and reliable contractor to work with is not easy as you may think. But there are simple measures to follow to prevent yourself from being victimized by unscrupulous contractors.
In California, the California Contractors State Licenses Board (CSLB) aims to assist homeowners in making informed decisions when hiring and managing contractors for their home improvement projects.
The CSLB is part of the Department of Consumer Affairs, and is in charge of licensing and regulating contractors, as well as registering home improvements salespersons. An integral part of the CSLB’s duties is to educate consumers on dealing with contractors.
As Californians spend more than $39 billion on residential construction each year, the role that CSLB plays in safeguarding the rights of consumers cannot be underestimated.
Unfortunately, many homeowners still find themselves falling prey to unscrupulous and unlicensed contractors. Even those who are able to find honest, licensed contractors, would at times find themselves into trouble because of some misunderstandings about costs, expenses and schedules.
We are all familiar with horror stories told by someone we personally know the nightmare of having a house remodeled: costs going beyond the budget; the job taking so long to finish; the inconvenience of the noise and dust; jobs poorly done; and so on and so forth. Indeed, one must always remember the Latin maxim, “caveat emptor” or “let the buyer beware” when having his or her house remodeled. A responsible consumer is one who does his homework before choosing a contactor.
The CSLB, reminds homeowners of their rights and responsibilities when making home improvements. As a California consumer, a homeowner has the following rights on working with contractors: (1) the right to hire only licensed contractors; (2) the right to make a downpayment of no more than 10% of the project price or $1,000, whichever is less; and (3) the right to a written contract that is clear and includes a payment schedule and completion date. The CSLB likewise impresses upon consumers their foremost responsibility which is to properly plan and manage their projects.
The CSLB gives the homeowners useful tips to minimize the chances of encountering problems with their home improvement projects or contractors. These precautionary measures are discussed thoroughly in the CSLB’s website at www.cslb.ca.gov and summarized as follows:
1. Plan your project. A carefully prepared plan is helpful in getting accurate bids from contractors.
2. Investigate the different sources of funding, if you wish to obtain financing for the project. This will help you make a comparison of the amount, interest rate, terms and tax considerations for various funding sources.
3. Check the contractor’s license. In California, anyone who contracts to perform work that is valued at $500 or more for materials and labor must hold a current, valid license from the CSLB in the specialty for which he or she is contracting.
4. Check the contractor’s references. Ask the contractor for local references and call them to see if they are satisfied with the contractor’s work.
5. Make sure the contractor has worker’s compensation and liability insurance coverage. You may verify from the CSLB’s website if the company is insured against claims covering worker’s compensation, property damage, and personal liability in case of accidents.
6. Get at least three written bids using identical plans and specifications, so you can compare prices and contractors.
7. Do not sign anything until you fully understand the contract and agree thereto. Before signing, you may opt to discuss the contract, proposals, plans, and specifications with an attorney.
8. Make sure that everything you are paying for is in the contract, like the materials to be used, special requests, and instructions. The contract must clearly state your final agreement and accurately reflect everything involved in the work.
9. The contract must call for the work to be performed in accordance with all applicable building codes. The contractor should obtain the necessary building permits.
10. Upon completion of the project, the building department will conduct a final inspection. Do not make a final payment to the contactor until the building department inspector has signed off on the job.
If, in spite of all these precautionary measures, you still find yourself or herself in the middle of a problem, occurring during construction or afterwards, contact your contractor. He or she may be willing to rectify the problem immediately.
If not, complaints may be filed with the CSLB against any licensed and unlicensed contractors. Said complaints are received by the Intake and Mediation Center.
CSLB may provide help to consumers through mediation, arbitration, referral to other agencies, or by providing information on other avenues for individual redress. If no settlement is reached, CSLB may take disciplinary action against the contractor’s license. The CSLB may likewise take action by issuing a citation, which includes a civil penalty and/or restitution and/or order of correction. Serious cases are referred to the Attorney General.
The aggrieved homeowners may also take legal action through demand for arbitration, if arbitration was agreed upon in the contract, or through filing of a complaint in court.
Our homes are usually our biggest investment. Choosing our contractors wisely and with a little bit of luck, we can avoid the horrors of home improvement.
(The Author, Roman P. Mosqueda, has been a real estate broker and attorney, representing and advising sellers and buyers of real estate property in New York and presently in California.)