Commentory on"CONSUMER ALERT: Contractor took the money, and apparently ran."

The Sunday Globe (Boston) two weeks ago had an article that made me stop and look twice. It was entitled CONSUMER ALERT: Contractor took the money, and apparently ran.

AT first glance you see that headline and what do you say to yourself? “Oh no, those poor people!” That’s what I say too, but then again these people could have prevented this form happening to themselves.

One of the very first things we do is to try and educate our potential client about the pitfalls of committing their time, home, and money to the wrong people. As anyone who had ever talked to us knows we spend a lot of time going thru the steps every homeowner should address with potential partners for their project. From getting current copies of licenses and insurance, to reading the contract and checking the state website for any current information that might be available.

In this Q & A article the homeowner says that they hired a “friend” of two co-works, gave him and $9,000 upfront to purchase the materials “to get a discount”, but after the project never got started and he stop returning their calls, then found out that he was not registered with the state, and wants to know what to do.

Unfortunately we hear this all the time, and we loose jobs to these guys when homeowners get sucked into the thought of getting the cheapest price possible. Well, that thinking just cost them an additional $9,000.00 this is the thing that gives us all a bad name, but until homeowners stop buying into it will never change. Whoever they hired gave them a low-ball price because he didn’t know his costs, and or never intended on doing the project because he isn’t a real contractor.

The Globe writer does a good job of going on to explain just what we always tell clients upfront. You can’t really do anything if you hired an unlicensed person. The state does have $10,000 available thru a state fund in the event of a loss to a contractor (which is funded by fees paid into by all registered and licensed contractors each year), but you must have hired a registered contractor or be eligible for access to the fund. As rightly so, since we are the ones funding the money.

The article goes on to quote Barbara Anthony, the undersecretary of the Massachusetts Office of Consumer Affairs and Business Regulation “Our mantra at the Office of Consumer Affairs and Business Regulations is to only deal with registered home-improvement contractors”

The article also did a good job of reminding homeowners that in Massachusetts a contractor cannot take more than a third of the project price upfront (unless there are special order items, and they can take enough to cover those costs). That’s one of the main reasons Almar clients have so many progress payments in our contract. You’re never too far ahead of us and we are never to far ahead of you.

The article didn’t address some other red flags that we always point out: Never let a contractor tell you to pull the permit. If they aren’t willing to do it, there is a reason, and if you pull the permit you will then become liable for them and their work.

Just remember a deal isn’t always the lowest price. The bottom line is almost never just about money. Who you are working with, where they come from, how long they’ve been in business, how professional they are, and their ability to be here for years to come often will save you way more money then by hiring the lowest price guy. There’s a reason he’s so much cheaper then people who know what they are doing.

And remember that for most people their house is their largest asset! Why hire the cheapest, unlicensed and unprofessional contractor to entrust that asset to? You wouldn’t put your money in an uninsured bank, or hire a lawyer who didn’t have a law degree, or a doctor without a medical license.

If you’d like more information and tips about how to protect yourself and save yourself thousands of dollars while planning your next remodeling project then request my FREE REPORT: The 6 "Secrets" to the Perfect Custom Remodel of Your Home.