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?