If Utah state statistics don't lie, unscrupulous building contractors rip off the public and colleagues in the building trade at an alarming rate.
From July 1, 1989 to April 1 of this year, the state Division of Occupational and Professional Licensing received 454 complaints involving building contractors.The complaints describe various scenarios of "unprofessional conduct" such as a contractor taking off with a down payment without even starting the job, leaving a job unfinished or deliberately not following the customer's building plan. In some cases, complaints are filed by sub-contractors against general contractors who don't pay for material and labor on time.
Among the complaints received in the past nine months, 63 percent deal with unlicensed contractors.
But, unlike in years past, state licensing investigators can now act on the complaints, thanks to new, tougher laws.
Since the Construction Trades Licensing Act went into effect this past July, the division has filed 33 administrative charges and 55 criminal charges.
That couldn't be done the year before because the Legislature, in a spirit of abolishing government waste and bothersome business regulation, had spent the two previous years cutting division funding and gutting statutes that regulated the construction trade.
Concerned about the profession's reputation, the Home Builders Association of Utah worked with the division to help pass the new construction laws that allow for misdemeanor fines of up to $2,000 a day levied against violators.
"We did this because we were concerned about the numbers of unlicensed contractors working in our state and the problems some of them were causing with the home-buying public," said Dennis B. Carter, association president.
"Even though the new law makes it tougher on all of us to qualify for licenses, we feel it was essential to weed out the unscrupulous contractors."
And to get the word out to more Utahns, the state Department of Commerce has issued a pamphlet instructing consumers and those in the building trade on how to deal with a problem contractor.
Issued this week, in conjunction with national Consumer Week, "Your Dream Home . . . How To Keep It That Way," explains how to prepare for a building project, accept and select a bid, draw up contracts, choose a contractor and seek help when problems arise.
While consumers and construction professionals can seek help from a number of agencies - local building inspectors, courts and the Better Business Bureau - the licensing division investigates unprofessional conduct and has the power to suspend or revoke a license.
Examples of unprofessional conduct include:
- Performing a job that exceeds $500 without a license.
- Failure to pay for labor or materials within 120 days of receiving the money.
- Failure to pay taxes, unemployment or workers' compensation insurance.
- Failure to complete a project without the owner's consent.
- Willful or material departure from building plans.
- Failure to comply with a building inspector order.
- Willful, fraudulent or deceitful act causing material injury or jeopardizing public safety.
The pamphlet is available at the Department of Commerce in the Heber M. Wells building, 160 E. 300 South.
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Choosing a contractor:
- Make sure the contractor is licensed with the state to do the work you need. For instance, a roofing contractor may not be licensed to pour cement.
- Ask for references and check them out. Be wary of those drumming up business by passing out flyers or going door-to-door.
- Be cautious of requests for down payments to buy materials or "solidify" a contract. Most established contractors will buy materials, then ask for reimbursement.
- Don't allow work to begin until the contractor has secured a building permit.
- Ask for lien releases signed by the contractors and suppliers who work on your project.