Steps homeowners should take to help avoid contractor trouble

SALT LAKE CITY — That bargain basement price you've been quoted in a bid for a new roof, driveway or, well, basement, might look good on paper, but the latest numbers from the State of Utah show home improvement complaints keep landing at the top of Utah consumers' headache list.

At the Utah Division of Consumer Protection, complaints about home repair or remodel have topped the list of consumer complaints for three straight fiscal years.

And over at the state's Division of Professional Licensing, they've logged 524 complaints about unlicensed contractors this fiscal year so far. The division has also received 458 complaints about unprofessional conduct, 156 about financial responsibility and 134 complaints about project abandonment.

"They take money and then don't come back," said DOPL's director, Mark Steinagel, who had just returned from Utah's Capitol Hill, where he broke down those numbers for lawmakers.

"One thing we hear frequently about is the payment schedule," he said. "I'm sure you hear that, too."

Yes. Yes, we do.

To be clear, there are many honest contractors out there. But there are bad players, too.

Hoping to cut down on the number of complaints, DOPL has put together a pamphlet, "Steps to Home Improvement Success."

Those steps include:

Have a clear plan: Prepare detailed plans to make sure they'll meet your needs and the required building codes.

Get several bids: Get at least two bids for your project. Three is better. Get at least three references for each contractor you're considering.

Get it in writing: It needs to include the exact work to be done, price, beginning and end dates, permits and a guarantee of liability coverage.

Money down and payments: Be wary if the contractor wants a large down payment. Pay as the work gets completed and never in cash.

Monitor the job: Check in with the contractor regularly. Make sure they've gotten all the necessary permits.

Final payment: Do not make the final payment until your contractor has signed lien releases from all suppliers and subcontractors. Otherwise, they can file a lien against your property if the contractor doesn't pay them.

And since these steps come from the Division of Professional Licensing, you can also expect it to want you to make sure your contractor has a valid license. An unlicensed contractor cannot get the necessary permits, plus could open you to liability if any employees or subcontractors get hurt on your job.

"A license doesn't guarantee everything will go well, but you have a higher likelihood because of the checks that we do and the discipline we can take," Steinagel said.

On the Utah Department of Commerce website, you can verify whether a contractor is licensed.

Still, the advice from DOPL remains simple: Slow down before you sign a contract, definitely before you pay. Don't skip steps.

Because once your money is gone, clawing it back will be much harder than it is to vet a contractor in the first place.

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