Warning: Watch for fake contractors for home projects

The Better Business Bureau is warning you to be on the lookout for unlicensed contractors who could scam you out of your money.

Oregon is growing, especially Central Oregon, and that means more people are looking to build, buy, rent or repair homes.

But it also means there’s an increased opportunity for scammers to step in and take advantage of consumers.

The Better Business Bureau Northwest & Pacific said Wednesday it has seen an increase in the number of general contractor inquiries. And because of that, the group is warning consumers to make absolutely sure their contractor has a license before giving him or her the green light.

According to Stephen Mayer, Oregon’s Better Business Bureau marketplace director, not checking on a license can cause big problems in the long run.

“That’s why we really encourage people to make sure those contractors unfold the proper permits,” Mayer said. “Because once you go to sell that home or have the inspector go out to look at it, or get a renter in it for the first time and something pops up, you could be liable for that, if you don’t have it well-documented.”

According to the Better Business Bureau, since January 2017, Oregon consumers have reported three home improvement scams, with $12,000 lost. It’s important to remember this doesn’t just apply to big construction contractors. It’s also for handiwork in the home and roof work.

To avoid hiring a fake contractor, it’s important to check that the business is licensed through the state. Also ask for references and get multiple estimates for your project.

Mandy Weidman, operation and sales manager for the Central Oregon Builders Association, said everyone is at risk of being scammed, but some people could be more vulnerable than others.

The vulnerable include “the people who are not checking licenses, the people who need a quick handyman check around the house that think they don’t have to check the licenses for something like that, and the people who are getting bids from reputable companies, and they’re a little out of their price range, and they think they can save a couple of extra dollars and go with somebody not licensed,” Weidman said

Experts say to be especially wary of contractors going door to door or asking to be paid upfront.

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News release:

BBB WARNS OF HOME IMPROVEMENT SCAMS

Scammers Target Consumers and Businesses   

Portland, Ore. – Since the start of the new year, Better Business Bureau Northwest & Pacific has seen an uptick in customers searching for general contractors to help spruce up their homes. BBB has received more than 72,000 local inquiries to general contractors since January–that’s up nearly 4,000 from last year. Locally there were more than 21,000 searches in Oregon. Unfortunately, scammers are hoping to capitalize on this interest by finding ways to con consumers and contractors out of money.

In 2017, there were nearly 350 home improvement scams reported to BBB Scam Tracker across the U.S., resulting in more than $600,000 lost. While these scams typically targeted homeowners, contractors who hire subcontractors to help with their work can be just as vulnerable.

“You’ve just got to do a little more research. Make sure they are properly licensed. Make they’re properly insured. Make sure they have the right equipment before you invite them onto your property, because if they’re not insured and they get hurt on your property, you may be liable for that. So you’ve got to be really cautious,” Mayer said.

To find a trustworthy business near you, BBB suggests the following hiring tips:

Check out licenses. Be sure to check if the business is properly licensed in your state. It’s also important that any business working on your home is properly insured. Find a trustworthy local business by searching for contractors with the BBB App at bbbapp.org.

Ask for references. Request at least two or three references from the business’s last few jobs and ask questions about the quality of work, if it was within budget and on time, and to the customer’s satisfaction.

Get multiple estimates. Before accepting an estimate, get at least three bids or quotes in writing. Don’t feel pressured to go with the lowest bid, as it might reflect the quality of materials.

To avoid losing money, look out for these red flags:

The contractor doesn’t have a permit. A building permit is required for most construction and remodeling projects to ensure the work will be done to code. Any reputable contractor will get all necessary permits for the job and won’t try to persuade you to do it yourself. Remember, if a contractor is willing to cut corners here, where else might they?

Payment upfront. Be skeptical if a contractor tells you they need a cash payment up front to purchase materials or rent equipment. A down payment may be required, but you shouldn’t have to pay for the entire project in the beginning.

Door-to-door contractor. Beware if you come across a contractor going door-to-door offering their services. Never let someone into your home that you do not know, especially if they’re pushy. Instead, ask for their business card and close the door. You can research the company later to see if they are legitimate.

 For more information on finding a contractor you can trust, visit bbb.org.