Ten Key Questions You Must Include In Your Interview With Your Contractor

Ever wonder why everyone you talk to knows someone who has had a home remodeling nightmare or they themselves have had an encounter with the Contractor From Hell?

Well sadly it’s become the norm, almost acceptable and that’s wrong. In fact, it’s criminal. Homeowners should not have to be held hostage by unethical contractors and can do much to protect themselves by researching their potential contractor and understanding what your contract states -and more importantly – what it should state and include.

As for the laws protecting the homeowner, you’ll learn from others who have been through the legal fight, the frustration and realization that the agencies set up to protect homeowners simply cannot do enough to enforce their own laws intended to govern contractors. Contractors frequently violate these laws and get away with it. That is, until somebody bothers to file a complaint.

Unscrupulous contractors don’t abide by these laws and that’s simply a character issue. Character, meaning negligent, arrogant, deceitful, careless, lazy, and doesn’t give a damn. That’s how they live their lives. The ugly side of human nature and they’re fine with it. Disciplinary actions by regulatory agencies doesn’t deter them from doing it again.

In my humble opinion, the disciplinary action imposed upon these contractors isn’t severe enough to prevent them from breaking the laws or repeating their behavior. It has to really hurt them hard – which for these characters is all about the money – and is the only thing that matters to the unethical contractor. Then we need to disclose and expose these crooks as quickly as possible. Until we can make these changes (via the Legislature) American consumers will continue to be plagued by corrupt contractors.

But find yourself an ethical contractor who knows and insists on quality construction, abides by the construction laws, hires licensed subs and shows up for a full days work on a regularly scheduled basis – and is great at keeping you informed of progress or unanticipated problems – you will be a very happy homeowner when all is said and done. I’ve been there since the earlier dark days, and boy it’s like night and day or I should say heaven and hell!

“Know that there are good contractors and bad contractors and it’s pretty much split down the middle from all I have seen and heard over the years. Your job is to stay away from the bad ones, know what your rights are, what your States’ laws dictate when hiring a contractor, and filing a complaint should the situation call for it.“

As to the complaint process, that’s another frustration. It does take awhile – forever comes to mind – for the investigative process to move forward and in the mean time, the contractor just moves on to the next job. But not before he slaps a lien on your property. A lien which the majority of the time is without merit and rarely perfected. Such a ruse and one statute of the law that must be changed as it is abused by unethical contractors all day long. And of course, not the intention of the lien laws. You can read more on mechanics lien laws here but be very aware of it and protect yourself in the process.

Right now you may be thinking to yourself how is it that these “ethically challenged individuals” are getting licenses and too, these so called consumer protection agencies are just a fraud and have no business being in existence. Well, part of me agrees with that conclusion, because there are no checks and balances. Using California as an example, there are just under 300,000 licensed contractors out there working and they don’t have to “check in” with the State. So how is the Contractors Board going to know what each and every one of these guys are doing on a daily basis?

It’s impossible for them to know who and where the unscrupulous contractors are until someone files a complaint. These guys pretty much work autonomously, and they are accountable to NO ONE so what’s to stop them from breaking the laws? The homeowner typically doesn’t know the Contractors Laws UNTIL it’s too late, when they find themselves in a nightmarish hell with the contractor. Then shock, anger and realization sets in.

Shock that the dirt bag did this to you, angry that he-or she-got away with it and BOTH when the homeowner files the complaint (if they even bother) only to find that the agencies in charge of licensing contractors are not as responsive to their case as one would have thought, given the circumstances.

You may even find yourself questioning the motives of the State agency and wonder just who are they protecting?

No matter what State, the majority of consumers who have emailed me over the last seven years consistently state that there is bias towards the contractor or that the office they’re dealing with is “pro- contractor”. And to a certain extent they’re right. Some of these licensing agencies have staff that are just that, sprinkled in with some staff that are “pro-consumer”. While some of the various state regulatory agencies are better at consumer protection than others, all are woefully devoid of being able to truly look out for and protect the consumer. It’s impossible and that’s why we as consumers need to arm ourselves with information about our rights and the laws that govern contractors, so that we know what they can and cannot do.

To be fair, here in California the Contractors State Licensing Board has made some significant changes as a result of some serious flaws in how they previously conducted business. A two year monitoring program that began in 2001 (as mandated SB2029) resulted in some positive changes and many of the recommendations were implemented by the Contractors Board. These recommendations benefit California consumers in the long run, and though the Board has not adopted all of them it’s still a much needed improvement.

There have also been policy changes initiated administratively, as well as changes to the laws passed by the Legislature that offer better protection for consumers. And though some progress has been made in California to better protect the consumer, it’s not nearly enough. You can never do enough to protect consumers from gross, unethical behavior by those conducting business in the State. This after all, is the reason for their existence as Consumer Protection agencies. Reality shows us, however, that there are serious limitations on our governments’ ability to protect American consumers. Yet, from all that I have learned from consumers in other states, the Contractors State License Board in California has been more progressive in working with consumer advocacy groups -myself included- towards reform in the areas of education and protection for the consumer.

All right – now you’ve got a glimpse of what lies ahead; so what does this all tell you?

That it becomes YOUR responsibility to protect yourself. And you do that by arming yourself with knowledge-and lot’s of it- until you can’t stand it anymore, and you understand just how little protection a homeowner has when contracting for a home improvement project.

The purpose of ContractorsFromhell.com is to help you avoid, in as much as is possible, doing business with unscrupulous, untrustworthy, unreliable, unethical, irresponsible and – once they have your money in hand – unavailable and negligent contractors.

This site contains important information, links and outside resources that can assist you in your research whether you’re just beginning to plan your project or are already knee-deep into a home improvement project. Part of your research is to go to your States licensing agency and check for consumer information and licensing requirements so be sure to check out and visit those links in the site.

I wish you the best of luck! Do your homework and be sure to check out my own encounter with the contractor from hell who, by the way, has become a shining example of the worse offenders of an unethical contractor, according to the State Contractors Board.

If after reading through this information you decide, for some strange reason, it’s not necessary to do all the work, and you choose to pursue your dream of a newly remodeled home anyway-just be sure to keep handy a 2 by 4 that you’ll be needing to whack yourself on the head with every time the “dream” collides with the nightmare.

For I can tell you with much certainty and many head encounters with 2 X 4 planks, that you will find that 2 X 4 to be a much less painful experience than the realities of a home remodeling project gone wrong.

Oh yes, and as they say, Caveat Emptor!

© 2000-2009 ContractorsFromHell.com LLC

In a nutshell – no it’s not and here’s why. Times like these are prime breeding ground for less than ethical contractors to take advantage of unassuming homeowners looking for that great deal who will only look at the bottom line, give a quick once-over to what’s in the contract and “trust” that they are getting that great deal – what with the economy giving them this great opportunity to take advantage of – when in fact it’s THEM that’s getting taken advantage of!

Here’s what a less than ethical contractor hopes the homeowner DOESN’T know:

—> 1.) His bid doesn’t include everything your specifications sheet calls for, but rather makes vague references to specific items. The homeowner doesn’t know how critical it is to cover in detail every single item expected to be included and performed in the spec sheet and “trusts” that what he said he’d do, he’ll do.

Result: The homeowner gets hit with “extra work” invoices for items they thought were in the contract.

Lesson: Get educated on creating thorough spec sheets, reading bids carefully by line items and expect change orders but on your terms. Which brings us to:

—> 2.) Change Orders: Write into the contract that any “extra work” must be approved in the form of written Change Orders, which are agreed to and signed by both the homeowner and contractor before work is performed and added to the total contract price if the contractor expects to be paid for it.

—> 3.) Lien Release Waivers: You pay the contractor who in turn pays his subs and suppliers, but at the end of the project the homeowner discovers the contractor didn’t pay one or more subs or suppliers

Result: The homeowner gets slapped with Mechanics Liens where they will end up paying twice for work they thought had been paid for by the contractor. It’s either pay up or hire an attorney to try and reason with the contractor – or sue.

Lesson: Write into the contract that Lien Release Waivers are required upon each payment made to the contractor, and must include releases from the subs and suppliers as well.

—> 4.) The contractor agrees to pull the permits and takes payments that cover those costs. A couple of months later problems start to crop up, communication with the contractor becomes strained and in an attempt to get to the truth the homeowner contacts the city only to find out he never pulled the permits!

Result: The homeowner ends up paying fines to the city, has to pull and pay for the necessary permits, may have to tear out work for inspections that should have been performed and will never get the money back from the contractor for the initial permits paid for, but never pulled. The homeowner ASSUMED the contractor would pull the permits but never saw the permits or thought to ask for them.

Lesson: Have it written into the contract that the contractor is to obtain all necessary permits, provide you with the permit documents to post and provide you with the receipts paid to the city for your records.

—> 5.) The contractor’s work is substandard but you can’t get him to correct much less acknowledge that there are problems.

Result: You’re stuck with poor workmanship, and an unpleasant even contentious relationship with the contractor. At your wits end you fire him but then get sued for breach of contract.

Lesson: Have a Cancellation or Termination Clause written into the contract that allows the homeowner to fire for substandard work, deviation from the contract and scope of work or illegal activity.

—> 6.) The contractor asks for a large upfront payment with 2 more payments at specific milestones.
Unbeknownst to the homeowner, the contractor is getting more money than work is being performed, right from the start. Eventually over time, he and his crew stops coming regularly or not at all. You suspect – and rightly so –that your money is being used on someone else’s project.

Result: When the homeowner realizes he/she has paid for work that has not been performed and when finally tracking down the contractor, he/she makes excuses or asks for more money. Very often the contractor has moved on to another project with your money in hand. The homeowner gets put off by the contractor and is forced to hire an attorney.

Lesson: Put together a more frequent payment schedule that requires invoices that details work that has been performed, supplies and materials used with costs to date and showing those cost deducted from the total contract price. Research your State’s law regarding down payment limits or consult with a construction law attorney to verify a reasonable down payment.

—> 7.) During demolition, the contractor discovers an unforeseen problem, i.e., termite damage on existing wood members and immediately recommends a solution, which is costly, but needs to be done immediately in order to move forward. (Or, goes ahead and makes the fix then presents you with the reason and the bill after the fact.)

Result: The homeowner has no idea that there may be a more cost effective solution but this is an opportunity for a contractor to legitimately add extra costs that are more profitable for him.

Lesson: Include an Unforeseeable Work Clause in the contract that states that the owner must be given prior notice before any “unforeseen” work is performed. Include the right to obtain other bids for the work to ensure you are not paying a higher than normal cost.

Consumers can learn more about protecting themselves by visiting the ContractorsFromHell.com and enrolling in the Home Remodeling Bootcamp For Homeowners. The Home Remodeling Boot Camp, an online membership site created by Jody Costello, founder of ContractorsFromhell.com, is designed to teach consumers to be their own best advocate and in control of their project. Engaging homeowners to do the necessary homework, giving them the tools and information to help them choose their contractor wisely, will help mitigate the most common problems encountered when hiring and working with contractors

Every homeowner who embarks on a home remodeling or building project looks forward to their dream home beginning to take shape. They anticipate a flurry of activity at the beginning, first with demolition followed by the arrival of materials and subcontractors ready to work.

Shortly thereafter, certified letters requiring their signature arrive in the mail from suppliers and subcontractors. When they anxiously open the letters to read the words “Preliminary Notice” stating that someone is asserting lien rights against their property – they panic! But they shouldn’t – at least not at this point. The homeowner is simply being alerted to a commonly used legal instrument in construction that ensures payment for services, labor and materials provided for a home remodeling or building project.

The purpose of a Preliminary Notice, also know as “Right To Lien”, “Pre-Lien” or “20 days Notice”, is to notify the owner of the property that if the party providing the Preliminary Notice is not paid, then that party will have the right to record a Mechanics Lien against the owner’s property. The time frame within which the notices must be sent to the property owner varies from state to state. Some must be sent to the homeowner within 20 days the sub contractor begins work on the project or when a supplier delivers materials. Other States have less than 20 days and still others have up to 90 or 120 days.

As a general rule, every subcontractor and materials supplier furnishing labor, services, equipment or materials to a construction project without a direct contract with the owner of the project, must give a written Preliminary Notice to the property owner if they want to retain their lien rights. Accuracy is essential for a valid preliminary notice. Notices should be served by certified or registered mail or if delivered in person, proper documentation and signatures must accompany the preliminary notice. Finally, receiving a preliminary notice does not mean someone is going to file a Mechanics Lien against you. It simply ensures their right to lien you if the contractor doesn’t pay them.

It is the responsibility of any homeowner who remodels or builds a home to educate him or her self about the construction laws in their state. Understanding lien laws and pre-lien rights and learning how to protect yourself from having a Mechanic’s Lien filed against your property are key to having greater control over the project and your money. Obtaining Lien Releases and Waivers after each payment to the contractor is something homeowners need to educate themselves about. Once you understand this, you’ll avoid the surprise and justified anger that the money given to the contractor to pay the subs and suppliers never transpired, despite the fact that it is his/her responsibility to do so. A homeowner typically finds this out when they get slapped with a Mechanics Lien against their property for non-payment from a supplier or sub contractor.

So just what is a Mechanics Lien and what should a homeowner to do at this point?

A Mechanics’ Lien is a legal claim to real property until a debt has been paid. If you employ a trades person or contractor to work on your home and a dispute arises wherein you refuse to pay, the worker has a right to file a lien thus making the property responsible for payment. Mechanics’ Liens must be recorded with the County recorder where the property is located. Liens must be enforced by a lawsuit to foreclose on the property within a specific time frame (varies from state to state -usually 90 up to 180 days) of the date of recording or they automatically become null, void and unenforceable. If this time has elapsed and the contractor has not filed a lawsuit within the time period allowed, then demand that he execute a release of lien in writing. If he refuses to cooperate then the homeowner can petition the courts for a decree to release the lien. This usually requires hiring an attorney, as the process can be somewhat complicated.

It’s important to note that unethical contractors file the majority of liens and usually the liens become null and void based on the fact that the burden of proof lies with them. It’s costly, requires legal representation, proper documentation but more importantly they have to be 100% correct to win their case. Moreover, these contractors never intend to perfect the lien but instead use it as a tactic to either scare the homeowner into paying them more money, or to get back at the homeowner who has filed a legitimate complaint against the contractor. Ethical contractors use it only as a last resort and know they have a legitimate case.

Good contractors strive to maintain excellent customer relationships by working with their clients to resolve problems, perform quality work, always pay their subs, and conduct themselves professionally with the goal of building a successful business. Finding an ethical contractor takes some work on the part of the homeowner but by doing so ensures having less problems and a more positive outcome for both parties.

© 2000-2009 ContrctorsFromHell.com LLC

A successful home remodeling or building project is dependent upon finding an ethical, reliable, competent and experienced contractor. The responsibility of hiring an ethical and experienced contractor falls on the homeowner. Doing the necessary research and background checks on the potential contractor is key to finding that contractor and avoiding an encounter with the contractor from hell. Unfortunately, many homeowners simply don’t bother with thoroughly vetting their contractor and end up in a nightmare they never imagined. As a consumer advocate for homeowners over the last 8 years I’ve identified the ten biggest mistakes homeowners make when they begin their search for a contractor.

The Homeowner:

1. Doesn’t bother to check the remodeling or building contractor’s license status at all, if just to verify that he/she has one and that it is in good standing. Checking the license is a necessary formality but it does not guarantee a favorable outcome. (Not all States require licensing)

2. Assumes that just because a building contractor is licensed in his/her state that they will be ethical, will abide by the contractors laws in their state and perform quality work that meets industry standards. Many homeowners stop here without doing further background checks on the contractor.

3. Doesn’t thoroughly interview the contractor, asking key questions about job performance, employees or subcontractors and material suppliers he uses, projects he has done similar to yours and how he handles problems when they come up – because they will come up.

4. Has an uncomfortable “gut” feeling about the contractor but ignores it and hires him/her anyways because they want to get going with their project.

5. Does not verify if the contractor maintains a permanent physical business address – not a PO Box or Postal Annex type address with a suite number – a mailing address, published phone number, fax, and cell phone or voice messaging system.

6. Doesn’t verify that the contractor has all the necessary insurance coverage – Surety Bond that is active; Workman’s Compensation Insurance if there are employees; and General Liability Insurance by contacting the companies to confirm coverage.

7. Signs a construction contract they don’t thoroughly understand and has little detail with regards to the scope of work to be done, materials used with brand names you chose included.

8. Assumes the oral agreements made when discussing the project will be part of the work performed when in fact they don’t make it into the contract and when later the homeowner questions the contractor about it, it becomes a “change order”. And the law is on the contractor’s side; anything not in the contract is considered to be a change order.

9. Gives the contractor a large sum of money up front to begin the project. Every State has specific laws relating to the amount of money the contractor can legally ask for to begin the project.

10. Hires the remodeling or building contractor based on trust alone. Trust is something that is earned. If the homeowners did their homework and background checks on the contractor, they will come to trust their contractor based on his performance, behavior, professionalism and knowledge.

© 2000-2009 ContractorsFromHell.com LLC

If your home was built in or before 1978 it is highly likely that it contains lead-based paint. If not conducted properly, certain types of renovations can release lead from paint and dust into the air.

Lead is a highly toxic metal that was used for many years in products found in and around our homes. Lead may cause a range of health effects, from behavioral problems and learning disabilities, to seizures and death. Children 6 years old and under are most at risk, because their bodies are growing quickly.

Research suggests that the primary sources of lead exposure for most children are:

- deteriorating lead-based paint,
- lead contaminated dust, and
- lead contaminated residential soil.

Truth is, most people wouldn’t know that old peeling paint might potentially be harmful. Knowing this, the Federal government has taken a fairly aggressive approach in getting the word out to the public through education. Like mold, we believe it’s important for consumers to be informed about environmental dangers. This section provides resources and links to various sites addressing the dangers of lead paint and I encourage you to educate yourself by visiting those sites.

In poorly maintained houses, lead-based paint, which may be several layers down, flakes and peels off. Usually due to moisture problems, sometimes rubbing or impact causes paint failure. Doing work improperly can also cause alot of dust.

Lead-based paint chips and dust then mix with house dust and build up in window troughs and on floors. Children become endangered when lead in paint chips, dust and soil gets on their hands and toys which they may put in their mouths.

Lead poisoning is a serious disease particularly in young children. Lead can make children very sick and cause permanent brain and nerve damage. Lead poisoning can cause learning disabilities, behavioral problems, mental retardation and stunted growth. It is an illness caused by environmental factors only. Children under six are most at risk. It is not contagious from child to child, but can be passed from a pregnant mother to her unborn baby through the bloodstream. Currently there is no treatment available that completely removes lead from the body.

But the good news is that lead poisoning is preventable by reducing your family’s exposure to lead. For more information on the hazards of lead and what you can do to protect yourself be sure to visit the Environmental Protection Agency web site. Additional resources for research are listed at the end of this section. If you have any questions or concerns about lead be sure to follow the links to those sites and contact them with any questions you may have.

WHAT MAKES LEAD PAINT A HAZARD

• The lead paint is deteriorating. As the paint breaks down, it releases paint chips and lead dust that can contaminate the home and be easily ingested by your children through hand to-mouth activity.

• The lead paint is on friction or impact surfaces. (i.e. stairs, window sills) Impact to these surfaces can damage the paint and release lead.

• The lead paint is on child-accessible surfaces that show evidence of teeth marks.(i.e. window sills, railings, stair edges)

Lead Paint is usually not a hazard if the paint:

• Is in good condition
• Is not on an impact or friction surfaces

All testing for, and identification of, lead hazards should be completed per EPA regulations.

You can test for lead in dishes, paint and other items around your home. Purchase a lead test kit at your local paint or home builders’ store or contact one of the companies listed at the end of this section.

These tests will only indicate if lead is present – not how much lead is in the product. The test is not entirely accurate.

Call the National Lead Information Center at 1(800) 424-LEAD (5323) for more information about lead poisoning and proper ways to remodel.

http://www.epa.gov/lead

Sources of Lead In The Home Environment

Paint: Paint produced before 1955 is likely to contain high concentrations of lead particles. Paint produced before 1978 is also likely to contain dangerous levels of lead, but far less than that made before 1955.

Soil: Soil is likely to contain lead around older homes if some of the exterior paint layers are lead-based paints. Lead gets into the soil as the exterior paint deteriorates and flakes off or chalks. Sun and wind weather the painted surface and rain washes the lead chips and dust onto the surrounding soil

Dust: Lead contaminated dust is one of the primary sources of lead poisoning in children. The dust is created from deteriorating paint in older homes as paint chalks, peels and flakes. Children pick up dust on their fingers from floors, windows and other painted surfaces.

Water: Plumbing systems in older homes can contain lead soldered pipes or even lead piping. New brass faucets and fittings also contain some lead which can leach into the surrounding water. There are home test kits which can detect lead in water.

Food: Food and beverages in cans imported from other countries such as Mexico, Philippines and Indochina may contain lead soldered seams. The lead in the solder leaches out into the food or liquid which can poison small children. Cans with no side seams or with narrow seams and thin black/blue lines are lead free.

Pottery: Colorful glazes and clear varnishes on pottery, earthenware and other ceramics may contain lead, especially imported or handmade items made in Mexico, China and Italy.

Home Remedies: Various cultures use home remedies and medicines for different health reasons. Some of these home remedies contain lead and can make children very sick. Be sure to read www.epa.gov for more info on what to avoid.

• Home remodeling and renovation projects can generate lead dust via sanding and other disturbances to lead-based paint.

• This high volume dust can dramatically increase a child’s exposure to lead and can cause high levels of lead in their bodies.

One family reported that during renovation the family dog began to have seizures. Upon further examination the veterinarian found that the dog had been lead poisoned.

Lead-based paint can also pose a threat to workers by causing damage to their brains, and nervous and reproductive systems. Workers can protect themselves and their customers by practicing safe work habits which is addressed in the Lead-Based Pre-Renovation Regulation noted above.

So if you are doing extensive remodeling on an older home, it is best to obtain professional help. Call the State Lead-related Construction Hotline at 1 (800) 597-5323 for guidance.

California Childhood Lead Poisoning Prevention Branch
www.dhs.ca.gov/child lead

Lead-Safe Schools
ww.dhs.cahwnet.gov/child lead/htm/GENregs.html

California Lead Poisoning Hotline
(EPA branch)
www.calepa.ca.gov

tableware Information Line:
www.childlead.com/tableware/twinfo.html

Occupational Lead Poisoning Prevention
Program
www.dhs.cahwnet.gov/ohb/OLPPP/default.htm

State Food and Drug Branch Hotline:
To report foods with lead sold in the U.S.
800.495.3232

State Lead-Related Construction
Information Line:
www.dhs.ca.gov/childlead/html/materials.html

NATIONWIDE

National Lead information Center www.epa.gov/lead/nlic.htm

Alliance to End Childhood Lead Poisoning www.aeclp.org

Consumer Product Safety Hotline www.aoa.gov/aoa//DIR/80.html

EPA Safe Drinking Water Hotline www.epa.gov/safewater

U.S. Department of Housing and Urban Development (HUD) www.hud.gov/offices/lead

The National Center for Lead-Safe Housing www.leadsafehousing.org

U.S. Environmental Protection Agency www.epa.gov/opptintr/lead/index

U.S.Center for Disease Control/ Prevention (CDC) www.cdc.gov/nceh/lead/lead.htm

Environmental Defense Fund (EDF) www.edf.org/pubs/Brochures/LeadInChina

© 2000-2009 ContractorsFromHell.com LLC

You’ve remodeled your home and you’ve lived to talk about it. And despite the problems and inconveniences (contractor from hell experiences excluded, thank you very much!) you’re happily into choosing home furnishings, colors, textures and all the fun stuff that goes into designing the interior of your home.

As time passes and the rains begin, you begin to notice a musty smell in various rooms of the house. The first thing that comes to mind is mold and you proceed to look for obvious signs of water intrusion such as discoloration on the walls, ceiling or even puddles of water. You find nothing, but you can’t deny the musty odor that was never there before and seems to be getting stronger. What do you do next?

The first thing you need to do is to locate the source of the mold, what’s creating it, what’s feeding it. Mold needs moisture, nutrients and a suitable place to grow. Somehow water is accumulating or leaking into the cavities of your home, which is a perfect place for mold to grow should moisture exist within. You should consider the possibility of water leaks and that in it self can be difficult to locate on your own.

“Testing for mold really isn’t necessary if you can visibly see it or smell it. You should save those resources for getting rid of the mold (remediation) and locating the source of the leaks or moisture in order to correct the problem. Unless, of course, you’re in litigation related to the problem as I was with our contractor and you need that as part of your evidence. Or if money isn’t an issue and your allergies are through the roof and perhaps your physician wants to know exactly what types of mold are affecting you.”

Either which way, the key is to clean up the mold, locate the source of moisture and fix it.

WHAT IS MOLD?

• Molds are fungi. Molds grow throughout the natural and built environment. Tiny particles of mold are present in indoor and outdoor air. In nature, molds help break down dead materials and can be found growing on soil, foods, plant matter, and other items. Molds produce microscopic cells called “spores” which are very tiny and spread easily through the air. Live spores act like seeds, forming new mold growths (colonies) when they find the right conditions.

• Mold should never be permitted to grow and multiply indoors. When this happens, health problems can occur and building materials, goods and furnishings may be damaged.

• Mold can affect the health of people who are exposed to it. People are mainly exposed to mold by breathing spores or other tiny fragments. People can also be exposed through skin contact with mold contaminants (for example, by touching moldy surfaces) and by swallowing it.

The type and severity of health effects that mold may produce are usually difficult to predict. The risks can vary greatly from one location to another, over time, and from person to person. The following types of people may be affected more severely and sooner than others:

• Infants and children

• Elderly people

• Individuals with respiratory conditions or sensitivities such as allergies and asthma

• Persons having weakened immune systems (for example, people with HIV infection, chemotherapy patients, organ transplant recipients)

Those with special health concerns should consult a medical professional if they feel their health is affected by indoor mold.

Some types of mold can produce chemical compounds (called mycotoxins), although they do not always do so. Molds that are able to produce toxins are common. In some circumstances, the toxins produced by indoor mold may cause health problems.

However, all indoor mold growth is potentially harmful and should be removed promptly, no matter what types of mold is present or whether it can produce toxins.

With that said, let’s look at the five warning signs that your home may have mold. Again, investigate don’t test.

#1. Noticeable mold odors. The most practical way to find a mold problem is by using your eyes to look for mold growth and by using your nose to locate the source of a suspicious odor. If you see mold or if there is an earthy or musty smell, you should assume a mold problem exists.

#2. Mold growth becomes visible. It may appear cottony, velvety, granular, or leathery and have varied colors of white, gray, brown, black, yellow, green. Mold often appears as discoloration, staining, or fuzzy growth on the surface of building materials or furnishings. When mold is visible, testing is not recommended.

#3. You notice excess moisture or water damage. Look for water leaks, standing water, water stains, condensation problems. For example, do you see any watermarks or discoloration on walls, ceilings, carpet, woodwork or other building materials?

**Search behind and underneath materials (carpet and pad, wallpaper, vinyl flooring, sink cabinets), furniture, or stored items (especially things placed near outside walls or on cold floors). Sometimes destructive techniques may be needed to inspect and clean enclosed spaces where mold and moisture are hidden; for example, opening up a wall cavity.**

#4. You begin suffering from (or you notice a worsening of) allergy-like symptoms.

These include:

• Nasal and sinus congestion
• Persistent cough
• Wheeze/breathing difficulties
• Sore throat
• Skin and eye irritation; itchy skin
• Upper respiratory infections (including sinus)

#5. On the exterior of the house there are areas that appear to be “wet” or do not dry out for days after rainy weather. There could be some water in the walls or cavities that are holding water indicating a leak and nowhere for the water to escape.

We had all of the above in our home as a result of shoddy construction and it took two remediations and three reconstructions to get a clean bill of health. I personally went through two rounds of Prednisone to help with the sinus infections, as I’m highly allergic to mold. It’s nasty stuff, to say the least.
The next article will deal with CLEANING UP MOLD including some tips on what to do if it becomes a medical problem and as result, how you may be able deduct the repairs on your tax returns.

© 2000-2009 Contractorsfromhell.com LLC

When it comes to home remodeling or renovating some part of your home, the first time a homeowner usually becomes familiar with the term “surety bond” is when problems with the contractor have come up.

It’s also a time when the homeowner may find that the general contractor has no liability insurance and now has only the surety bond to look to for help in recovering damages such as shoddy workmanship or abandonment of the project. Unfortunately, the news is not good.

First and for most, a surety bond IS NOT an insurance policy but rather a guarantee whereby the surety guarantees that the contractor (called the principal) will perform the obligation stated in the bond.

There are a number of bond types available but for the purpose of home remodeling and improvements there are three that would apply:

• Contractor Licensing Bonds
• Performance Bonds
• Payment Bonds

Let’s address Payment and Performance bonds first, as they are usually the least utilized by homeowners in their home improvement projects and carry a little more protection for homeowners.

Generally, Performance Bonds guarantee the completion of the project according to the building plans and specifications. If the job is abandoned or the work is unacceptable, the bonding company has the option of hiring another contractor to complete the work or settling for damages.

Payment Bonds assures the owner that no liens for labor or materials will be filed against the property as payment is guaranteed. In both cases the homeowner pays a percentage of the contract price to obtain the surety bond and becomes the obligee of the surety.

There are many complexities to these bonds not covered here that you would want to know if considering either of these bonds. If you’d like more information be sure to follow the links at the end of this article and do your research.

The most common surety bond homeowners get involved with is the Contractor License Bond, typically as a result of the contractor violating some aspect of the Contractors License Laws.

In California, contractors are required to post some form of security deposit with the Contractors State License Board and surety bonds are typically used for this purpose although cash or certificate of deposits may also be posted.

In this scenario, a surety bond is a contract in which the surety company promises the State of California that the contractor will comply with the provisions of the Contractors State License Law (CSLL) – Chapter 9 of Division 3, starting with section 7000 of the Business and Professions Code. The contractor’s “obligation” in this case is to NOT commit any violations of the CSLB that are grounds for disciplinary action against the license. The law sets forth specific violations, which the bond will cover.

If the contractor does not comply with the conditions of the bond, a consumer and/or employee may file a claim against the bond. (B&P Code Section 7071.5) The amount of the surety bond for general contractors in California is $12,500. (Other states vary in the required amounts.)

That’s $12,500 for ALL the jobs the contractor has going, not per project. So imagine if there are several individuals who for various reasons file a claim against that one bond. Very often damages per project exceed the entire dollar amount of the bond, let alone becoming available to the multitudes.

It’s just not going to happen, which is why homeowners need to be sure their contractor of choice carries liability insurance. So once that bond is depleted the contractor must renew the bond as well as pay back the money lost to the surety in order to keep his or her license. If a complaint has also been filed with the Contractors’ State License Board (which typically is the case) an independent investigation will be conducted by the Board or regulatory agency in addition to the surety company to determine if any violations occurred.

The contractor may be cited or even loose his/her license depending on the violations. It’s not a speedy process by any means and can be frustrating to the harmed homeowners not familiar with the process but needing to get on with repairs.

The important point that homeowners need to understand is that even if the contractors license board determines violations have occurred and the contractor is cited or even revoked, that doesn’t necessarily mean that the Surety will follow suit. Their terms of determining whether a pay out is justified is not dependent on what the Board deems is a clear violation of the CSLL.In other words, the surety company will determine if it will pay the claim and the Contractors Board will decide if disciplinary action or other resolution of the complaint is appropriate.

“Now this is where it gets sticky and very often consumers get slapped in the face by the surety company with a “no pay out” based on their own investigation of the facts even though their contractor was found to be in violation of the Contractors License Laws by the board. And that’s because the surety has an obligation to their principal – the contractor – to ensure that his/her license (and money!) is protected and not suspended. Their risk is very real and can quickly be consumed if not fervently protected, which is why their jurisdiction of what is “reasonably clear” is often at odds with what the CSLB determines.”

The surety companies will tell you that they serve both the bond claimant and the contractor but that’s just garbage. They serve the contractor, period. You cannot “serve two masters”, as one will always get the short end of the stick and that’s the homeowners.

“Many consumers have shared their frustrations with being denied pay out from surety companies even though clearly the contractor violated the license laws, damages were documented and disciplinary action pursued. It’s a no win fight as the surety companies have their so-called jurisdiction legally worded to protect their own. It’s simply not equitable no matter how much they deny it but then again, aren’t we Americans used to getting (ahem) hosed by now?”

Given that warning and using the California Contractors State License Board explanation on surety bonds, who benefits from the bond and how a homeowner files a claim against a surety bond follows:

Persons who can make a claim against the bond are listed in the CSLL (B&P Code Section 7071.5), and include:

a. Any homeowner contracting for home improvement work on the homeowner’s personal family residence damaged as a result of a violation of the CSLL by the licensee.

b. Any person damaged as a result of a willful and deliberate violation of the CSLL by the licensee, or by the fraud of the licensee in the execution or performance of a construction contract.

c. Any employee of the licensee damaged by the licensee’s failure to pay wages.

d. Any express trust fund damaged as a result of the licensee’s failure to pay fringe benefits for eligible employees.

How would a consumer file a claim against a bond?

In California, a consumer consults the CSLB’s Web site for information about the bonding company that wrote the surety bond covering the dates of the contract and the dates of the construction. Otherwise, contact your states Licensing Board for obtaining surety bond information on the contractor.

The consumer contacts the surety company, providing it with a written narrative describing the problem in detail, and attaching a copy of the contract and all other pertinent documents and information.

If a consumer is not satisfied with the response of the surety company, the consumer may take the contractor and the surety company to Small Claims Court for amounts up to $5000 against the contractor. The court can order the surety to pay up to $4,000. (Code of Civil Procedure Section 116.220(c)). Claims above $5,000 must be filed in Superior Court. (See the CSLB publication, A Consumer Guide to Filing a Small Claims Court Construction Claim.)

Be sure to visit your States regulatory agency, consumer protection division or local building departments for more information on surety bonds. In California, you can go to the CSLB web site and read up on surety bonds as well as more information on contractors and licensing requirements.

Source/Links:
www.sba.gov/financing/bonds/whatis.html

© 2000-2009 Contractorsfromhell.com LLC

Mechanics’ Lien, Preliminary Lien Notices, 20 day Notices…What does it all mean and why should you care? Well for one, it’s all the more to make YOU the homeowner responsible for an unscrupulous contractors’ lack of ethics, negligence and abusive tactics manipulating the lien laws and filing fraudulent liens.

Here’s a scenario that happened to us: You pay your contractor for work, materials and supplies related to your remodeling/building project with the implied understanding – AND AS PER THE CONTRACT – that he in turn will pay his subcontractors and suppliers for their part. This is, of course, just one of the responsibilities of the general contractor running your project. But he doesn’t pay them for whatever reasons, and you unexpectedly find yourself slapped with a lien against your property. Which makes you liable for paying your contractors’ debts. AND you end up paying twice for the work and materials.

Not exactly what I would call “fair and equal rights” for the homeowner. In my opinion it’s unconstitutional. Further more, the contractor has breached the contract by not paying his subs. But does our government do anything about it? Like addressing the fact that unscrupulous contractors have abused this law to the degree that it is no longer serving it’s intended use?

Rather, it is used as a weapon to punish and harass homeowners who have legitimate problems with their project and dare to question the contractor. And if you file a complaint with the regulatory agency that licenses contractors – watch out! That contractor just may punish you by filling a fraudulent lien.

The building industry has a powerful lobby in each and every State working hard (read: contributing lot’s of campaign money and other goodies) to further reduce consumer rights by buying off greedy legislatures in every State and having their bills passed into law. “Government by the people and for the people” has long disappeared. It’s all about money and God knows consumers are the ones getting hosed. So that’s the bad news.

Now let’s get to the reasoning behind the genesis of the mechanic’s lien laws. The following is a quote taken from Miller and Starr, 1990-California Real Estate 2d 121,et seq.

“The objective of the mechanics’ lien law is to secure payment to a mechanic for his labor and materials. The California Constitution (and this applies in just about every state) provides that all classes of mechanics, material men, artisans and laborers shall have a lien on the property on which they have bestowed labor or furnished material for the value of that labor or material. This constitutional mandate has been made effective by the legislature though the procedures provided in the California Civil Code. Thus, the law has created a preferred position for persons who perform labor or supply materials for the improvement of real property. *Very few identifiable groups have such constitutional protection for their specific benefit.* Because of this constitutional protection, any contract provision which purports to waive the right of a mechanic to enforce a mechanic’s lien or stop notice prior to the performance and payment for the work or materials is against public policy, void, and unenforceable.”

“The public policy that justifies mechanic’s lien law is the FAIRNESS AND EQUITY RESULTING FROM THE IMPROVEMENT by the labor and materials of another.”

EXCUSE ME?? Where is the “fairness and equity” when the contractor rips off the homeowner and doesn’t pay his subs and suppliers as he is mandated to do and you get liened?

“Where is the “fairness and equity” when the “supposed” home improvement has NOT been improved as a result of shoddy work and the homeowner is left with a house that leaks, improper flashing, no flashing, doors and windows installed incorrectly, newly poured slab cracking, water seeping under the house, a roof that is leaking, molds growing everywhere-with none of these conditions existing prior to that contractor getting his greedy hands on your property?? Where are the provisions of protection for the consumer in these instances? Where I ask you?”

All right, I think you get the message …contractors have far more rights and protection than consumers do.

And even as I write this the Building Industry which includes the big boys, NAHB and NARI, are hard at work seducing our government into further deteriorating consumer rights.

So keep track of all sub contractors and material suppliers on your project. Document the days materials are delivered, new subs starting on the job and lien notices sent to you. Your job is just beginning.

Some of the legal considerations regarding liens follow herein, but keep in mind that the lien laws are not the same in every State.

The basics are similar but the specific circumstances, time lines, treatment of contractors, subs and suppliers are different from state to state. If you encounter a lien against your property be sure to research thoroughly where you are at in the process and whether or not you’ll need legal representation. Follow the links in this section for more detailed explanation of the various sections of the law.

We’ll begin with defining the purpose of Preliminary Notices and Mechanics’ Liens.

The purpose of a Preliminary Notice is to notify the owner of the property that if the party providing the Preliminary Notice is not paid, then that party will have the right to record a Mechanics Lien against the owner’s property.

A Mechanics’ Lien is a legal claim to real property until a debt has been paid. If you employ a trades person or contractor to work on your home and a dispute arises wherein you refuse to pay, the worker has a right to file a lien thus making the property responsible for payment.

As a general rule, every subcontractor and materials supplier furnishing labor, services, equipment or materials to a construction project without a direct contract with the owner of the project, must give a written Preliminary Notice to the property owner if they want to retain their lien rights.

Preliminary Lien Notices are typically sent to the homeowner shortly after the remodeling building project begins. This notice must be sent to the homeowner no later than 20 days* from the day the sub or material supplier begins work on your project. (*This time frame applies to California and several other states; some states have a 30 day notice. Be sure to check the laws in your state for accuracy.)

But if the sub fails to do so, he may still be able to file a late notice and go ahead with the lien.

Receiving a preliminary notice does not mean someone is going to file a lien against you. It simply ensures their right to lien you if they don’t get paid by the contractor.

“As the homeowner, you can also use these notices to your advantage by contacting all subs who have served you notice and confirm they have been paid in full.Before paying the contractor for that portion of the job, get a confirmation of the check (or lack their of) amount, the subs name, date you called and keep these for your records. And if you find that someone has not been paid, use that as leverage before paying the contractor. In a worst case scenario, you could also get releases from the subs directly for their portion of the job as they got paid, which we had to do later into our project.”

Finally, accuracy is essential for a valid preliminary notice. Notices should be served by certified or registered mail or if delivered in person, proper documentation and signatures must accompany the preliminary notice.

As for the Mechanics Lien itself, there are rules that need to be adhered to as well. Mechanics’ Liens must be recorded with the County recorder where the property is located. Liens must be enforced by a lawsuit within 90 days of the date of recording or they automatically become null, void and unenforceable. If this time has elapsed and the contractor has not filed a lawsuit within the 90-day period, then demand that he execute a release of lien.

If the contractor refuses to execute a lien release, then you’ll have to petition the courts to remove the lien. This could take 45 to 90 days as it winds through the court system. Petitioning the court requires your obtaining legal documents (available at any law library) filling out the forms and submitting it to the court. Or, if you don’t want to bother with doing the forms yourself, hire an attorney to do it. . (Keep in mind that the unethical contractor has let the lien lapse because he never intended to foreclose, he just wanted to make your life more miserable.)

Thereafter, the lien is removed and you’ll be notified by the court. It’s important to do this as you’ll be unable to mortgage, refinance or sell your home with a lien attached to the property.

If you do get hit with a Mechanics Lien, and the 90 days is not yet up, you have some options in how to deal with it.

First of all, you can call the contractor directly and negotiate a settlement. Be sure to have the contractor sign a mechanics’ lien waiver and release to remove the lien from your title upon payment. You could also have an attorney or mediator to assist you in negotiations, which is the way I would go. Once “ill will” is created between you and the contractor, they become less willing to deal with you or return your phone calls. It’s predictable behavior of an unscrupulous contractor.

“But if the contractor acts on the lien by foreclosure on your property, you’ll definitely need an attorney to defend you. Mechanics Liens can be very complex and convoluted as to their “life” so to speak. Under certain conditions, liens can be extended for up to one year, and the contractor can even record new liens against you if they let the first one lapse. If you find yourself in the position of being liened and the amounts are large and /or the situation is questionable, you should definitely consult with an attorney familiar with this aspect of the law.”

Know that not all construction law attorneys are familiar with lien laws. In a perfect world, dealing with well known, reputable contractors would be the best way to avoid getting liened. But hey, this is far from a perfect world we live in. So obtaining lien releases from the contractor at every payment schedule – which includes his subs – is crucial. You could also make out “joint payee checks” which intended parties would have to sign in order to cash it. The contractor may not like it but that is his problem. You have a right to do so.

As a homeowner you could also require a “payment bond” on the contractor. Payment bonds guarantee that labor, subcontractors and material suppliers are paid. Payment bonds are common practice in commercial projects but not in private residential projects. The homeowner would have to foot the costs on this as part of the overall cost of the project, so it would be more effective and make better sense in larger home remodeling projects.

Here’s how it works: The payment bond guarantees the owner that subcontractors and suppliers will be paid the monies that they are due from the principal. The owner- that’s you- is the oblige; the beneficiaries of the bond are the sub contractors and suppliers. Both the oblige and the beneficiaries may sue on the bond.

The owner benefits from a payment bond in that the sub contractors and suppliers are assured of payment and will continue performance. The owner also benefits in that they are providing subs and suppliers a substitute for a Mechanics Lien. A positive side benefit in obtaining the bond for the contractor is that the surety would be evaluating the contractors’ financial standing. This type of credit check could help protect consumers from contractors on the brink of bankruptcy.

Lastly, to ensure that the bond is being furnished, you may want to provide for separate reimbursement for the contractors bond premium cost so that the bond is delivered to you.

“Whew! That’s a lot to consider before jumping into a home remodeling project and this is just one small piece of the pie!

But I’ve “lived and learned” and I for one will NEVER remodel or build a home with the way current laws are stacked against consumers. Having to deal with a couple of liens against our home – both of which became null and void – was more than enough for me.

Both contractors who liened us were ultimately cited by the Board for either fraud, shoddy work, aiding and abetting, working out of name class and much more. None the less, they still were able to lien our property regardless of the fact that they were in violation of Contractors State laws. Gee, does that seem fair and equitable to you?”

THE POINT I WANT TO DRIVE HOME IS THIS:

Unethical contractors will use this part of the law to get back at homeowners for filing complaints after insisting that they be accountable for their work. They deny any responsibility and instead take advantage of laws that favor them and use it against the consumer. Reputable, ethical contractors will take care of problems as they arise and more importantly, they inspect their own work to ensure it meets industry standards.

Rarely do contractors act on a Mechanics Lien by foreclosure of your home because it’s going to cost them as well and they better be right or it will cost them even more. But it is their final act of revenge against the consumer because they know damn well you can’t do anything until the lien lapses past 90 days or some poor homeowner ends up paying twice. Then good luck trying to get the contractor to release the lien after it has lapsed!

“It’s such a sham and it makes me ill just thinking about it. An unscrupulous contractor filing a mechanics lien without merit is the proverbial middle finger salute as he goes on his merry way to yet another unsuspecting homeowner because he can…because NO ONE is watching and NO ONE is telling.”

So take charge of your project and consider it your part-time job for however long it lasts. And be sure to keep a bottle of Motrin handy at all times…and keep those refills coming!

©  2000-2009 Contractorsfromhell.com LLC

COMING IN SPRING 2010

]]> http://www.contractorsfromhell.com/?feed=rss2&p=51 0