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Don't Get Nailed!

Don't Get Nailed!. 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.

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Don't Get Nailed!

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  1. Don't Get Nailed! Warsaw/Richmond County Triad April 23, 2013

  2. 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

  3. 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

  4. Your house – your money

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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?

  11. 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

  12. 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…

  13. 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

  14. 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? Avoiding trouble(even with licensed guys)

  15. 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

  16. 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.

  17. Questions, statements, comments, opinions, amusing anecdotes?

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