Warsaw/Richmond County Triad

April 23, 2013

First, some facts There are nearly

70,000 licensed contractors in Virginia

Less than 1% are actually found in violation of regulations

A little bit of knowledge can keep you from becoming a victim

Now Some Board Stats

(since 2003) Cases Heard: 5,962 Breakdown: 3,926 Disciplinary; 986

Licensing; 1,050 Recovery Fund Revocations: 1,448 Remedial Education: 2,456 License Denials: 175 Fines: $8,163,440 Recovery Fund Payouts: $10,143,144

Your house – your money

Today’s News A quick licensing primer: Class vs.

Classification/Specialty What you should know before you hire

a contractor Tips on choosing a contractor Verifying licensing information and

complaint history The contract What to do if it still goes wrong

Class means how much A, B or C C = contracts of

less than $10,500

B = contracts of less than $120,000

A = contracts of any dollar amount

Tradesman are not contractors

Classification/Specialty means what they can do Scope of practice

defined in the regulations

Cannot work outside of their scope except in rare circumstances

Some specialties require additional stuff

Bonding and Insurance Contractors must demonstrate

fiscal soundness based on the license class

No state mandated bonding requirements

Contractors must meet insurance requirements like any other business, but nothing special just for them

Revocations/Suspensions and other Board

sanctions Normally, licenses are valid for two

years and easily renewable Revocations/Suspensions occur due to

disciplinary action taken by the Board Most suspensions are the result of not

paying fines or attending remedial education

A contractor who has a revoked or suspended license is not permitted to finish a job that was already started

What you should know before you hire a contractor Have a clear idea of what you want

done, do some homework. How are you going to pay for the

project? Check out the zoning and permitting

requirements. What kind of contractor do you need. Does the contractor hold the

appropriate license?

Tips on choosing a contractor

Hire only licensed contractors Review complaint history on DPOR website Hire only licensed contractors Get three references, review past work Hire only licensed contractors Get at least three bids Don’t hire a contractor that is going door-to-

door Hire only licensed contractors Pay 10% down, or $1,000, whatever is less*** Hire only licensed contractors

So you want to do it yourself to save money? Do you need a

permit? How about inspections?

Hire properly licensed subs

Be sure that you are exempt from licensure

What to do if you hire a contractor and supply material…

The Contract (excerpts)

Regulatory requirements for contract

License number/Class/Specialties Begin and End dates Total cost and schedule of

payments Listing of specific materials Cancellation rights Change orders done in

writing/signed

Avoiding trouble (even with licensed guys)

Hire only licensed contractors NEVER pull your own permit NEVER pay cash Refuse to pay for materials up front Insist on a detailed contract

Stay away from contractors with “extra material”

Cheap really is Avoid high pressure sales tactics Avoid high down payments Is it really an emergency?

What do you do if something still goes wrong? Check your

contract Is it a code

violation? Business is

business Alternative

Dispute Resolution

File a complaint The Recovery

Fund

RED FLAGS

• Contractor requires homeowner to pull permit;• Contractor only accepts cash or gives large discount

for cash• Contractor wants to work on a handshake• Contractor just happens to have some extra material• Contractor doesn’t want to give you his license

number• Contractor wants homeowner to purchase the material• Contractor explains that deal is “for today only!”• Contractor wants to make an early draw – before

sufficient work has been completed.

Questions, statements, comments, opinions, amusing anecdotes?