The hard work done by licensed contractors often gets undermined by the few bad guys.
Tom: Here we are again, Sandy, and I have a topic for our readers this month.
Sandy: I am all ears!
Tom: We are always touting the benefits of hiring licensed contractors. But some recent events where a licensed contractor was found guilty of taking deposit money, starting jobs and then abandoning them, led me to think we need to talk with our readers about such an occurrence.
Sandy: Good idea, Tom. We never like to hear about such things, especially happening in our own backyard.
Tom: We should state from the get-go that while that does happen, the frequency of occurrences are few and far between in our area.
Sandy: True statement. I see more incidents where fraud takes place with an unlicensed entity than with a licensed company.
Tom: I think that is because most honest folks, who want to engage and become a part of the industry and create their own company, have good intentions and are willing to put in the work necessary to get a license.
Sandy: Obtaining a contractor license is not an easy task. And setting up a viable business takes a lot of work. There are very few who would risk losing all that effort by being fraudulent.
Tom: Thank goodness that is not the norm.
Sandy: This might be a good time to look at the silver lining here.
Tom: Always the optimist you are!
Sandy: Absolutely. The silver lining is that because the contractor that did something that was so wrong and unethical was licensed through the Arizona Registrar of Contractors, there is a thing called the Recovery Fund that allows the harmed clients to recoup some of their lost money.
Tom: Had these folks selected an unlicensed contractor, they would not have been able to have access and been approved for the Recovery Fund process, correct?
Sandy: Correct. Most victims that have used an unlicensed entity will not get back their investment.
Tom: That’s another reason to use a licensed contractor, as though there aren’t enough.
Sandy: The ROC, or Registrar of Contractors, is set up to protect the consumer in a variety of ways. The primary purpose is to ensure that a contractor is knowledgeable in the particular trade they want to operate in.
Tom: The testing is thorough. If you don’t know your stuff, you are not going to get a license. There are a multitude of licensed categories in which one can obtain a license.
Sandy: https://roc.az.gov/license-classifications is the best way to access all the different licenses that are available.
Tom: When folks select a licensed contractor, they have a reasonable expectation that the person, or company, has the qualifications to adequately perform the task for which they are hired.
Sandy: That is correct. The recent occurrence of this local contractor that took money and caused harm is quite rare in my experience, and I know literally hundreds and hundreds of contractors.
Tom: In my 40-plus years of contracting in this area, I could count on one hand the number of experiences I have had with bad actors. The hard work done by licensed contractors often gets undermined by the few bad guys.
Sandy: Perhaps the overriding reason the YCCA exists is to support the consumer. A lot of the programs we sponsor focus on continuing education for our members which, in turn, helps the consumer.
Tom: That is a great point, Sandy, I think it is worth saying that if someone is looking to hire a trades person or company for any work around their home, they could look for more than licensing. There are many trade organizations out there, in which membership can indicate a deeper commitment to the industry.
Sandy: True. Each trade has organizations specific to that trade that are indications of ongoing education or supporting a higher standard of performance for that company.
Tom: And, yes, YCCA is among them. You, specifically, are a tremendous resource for any consumer.
Sandy: Aww shucks, thanks, Tom! I love this industry and the folks who work so hard in it. I always say, this industry built America and it will never disappear – maybe we will see a few robots, but nothing can ever replace the men and women who have real true grit.
Tom: Part of anyone’s due diligence during the selection process should include noting the various associations a contractor or tradesperson might have.
Sandy: Good idea. I want to get back to reinforcing the concept of why hiring a licensed contractor is important. One supporting factor is dispute resolution. If you and your contractor are not in agreement about any aspect of the work, from quality to quantity, the Arizona Registrar of Contractors has a process where they can assist in mediating a resolution. That is called a Building Confidence Inspection.
Tom: That is a great resource. The ROC representative can be contacted by the homeowner or the contractor to meet, usually on site, and work with both sides to review the items in question, without going through a formal complaint process.
Sandy: So, I would like to sum this conversation up. We began with the silver lining that people who are defrauded by a licensed contractor potentially have some measure of recourse financially, rather than if they hired a non-licensed contractor. Then we talked about the testing and the educational commitment a contractor or tradesperson needs to make in order to get licensed. Let’s just share again the importance of hiring a licensed contractor. You know me, Tom, I cannot say enough about that.
Tom: Sandy, I get it and support you in your talk of talk. Contracting by unlicensed entities occurs every day and all too often the consumer loses hundreds or even thousands of dollars. What’s worse, you, as the property owner, have no recourse through AZ ROC if you hire an unlicensed entity.
Sandy: Hiring a licensed contracting professional offers many additional protections to the property owner, especially regarding residential property. First, a contractor cannot obtain a license without possessing a minimum amount of experience and must pass a business management test. The applicant is also subjected to a criminal history background check, may be required to take a trade examination, and must not have any unresolved contracting complaints outstanding.
Tom: Should a homeowner experience a problem with a licensed contractor, as a residential property owner there are significant protections not available to persons utilizing an unlicensed entity. Among them is the ability to file a complaint against the contractor’s license within a two-year period from the date of occupancy or date the last work was performed. This is the agency’s jurisdiction period should the workmanship be below standard or in violation of existing codes.
Sandy: We talked earlier about the Recover Fund. Under certain conditions, the homeowner may also be eligible to apply to the Registrar’s Residential Contractors’ Recovery Fund and, depending on the cost of damages, receive up to $30,000 to have the work corrected or completed. Each residential contracting license is covered for up to $200,000 to a maximum of $30,000 per residential property owner, on a pro rata basis upon filing a complete claim. Keeping detailed records of your contract, checks or other forms of payment will speed the processing of the claim, should the need arise.
Tom: And I am sure, Sandy, if any homeowners have questions, they can call YCCA. That about sums up this conversation. What did we leave out?
Sandy: Absolutely nothing. Bye for now. Keep smiling, everyone. QCBN
Tom Reilly, Architect, 928-445-8506
Sandy Griffis, Executive Director, Yavapai County Contractors Association. 928-778-0040.
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