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DA ILY
10/25/2009
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.have to have a license to build
Industry leaders call
wrong. An unlicensed con­
for tougher regulation
ofhome builders
01)
) r' ByANITAlEE
calee@sunherald.com
Any Tom, Dick or Harri­
et with a truck and tool box
·ca n work as a home builder
in Mississippi.
Reports of home repair
fraud have slowed since Hur­
r icane Katrina, but group s
representing lice.nsed home
builders believe Mississippi
needs stronger laws to protect
consumers fr om the heart­
break a nd expense of shod­
dy or fraudulent work.
T he Attorney General's Of­
fice says Katrina fraud cas­
es are tapering off, but com­
plaints arc becoming more
com mOil in other parts of
the state. Cases referred to
the attorney general's Con­
¥ Web extra
Find a list of builders
charged with or guilty
of home repair fraud at
sunherald.com
.,
Find consumer links to
check out builders at
sun herald.com
sumer Protection Division
decreased almost 39 percent
from 2007 to 2008, when 423
cases were reported.
"People have become more
aware of the problem," said
Meredith Aldridge, direc­
tor of the attorney general's
Consumer Protect ion Di­
~1/:pfRS TO llA
BUlLQfJtSFROM lA clear state law .that says you
vision. "We're seeing cases
Consumer info on
a house, period. It gives us
a trail to follow if they do
throughout the state and not
just on the Coast."
Rhonda Rhodes, execu­
builders improving
tractor, we don't know who
he is, we don't know where
tive director ofthe Hancock
County Housing Resource
Center, has seen firsthand
By ANITA LEE
calee@sunherald.com
The Board of Contrac­
tors maintains a list of
he is. We need to have one
threshold."
State Rep. Brandon Jones
tpe economic devastation
suffered by Katrina survi­ The Mississippi State
builders who have violat­
ed state law, resulting in
of" Pascagoula said he be­
came .involved in efforts to
vors. She estimates that 30 Board ofContractors plans fines and, in some cases, strengthen state laws because
to 40 HCHRC clients need to launch a searchablecom­ license revocation. Vio­ of countless telephone calls
help rebuilding because they puter database in early lations include operating from Katrina survivors vic­
lost their recovery funds to 2010 so consumers can without a license and neg­ timized as they tried t'o re­
incompetent or dishonest check the track records ligence. However, the list build.
builders. of builders. of violators has not been "When we say that we
Construction suppliers suf­ The lack of computer­ updated since 2008. would like for people to be
fer, too, when builders fail ized public records about John Sullivan, the board's licensed in order to perform
to pay for supplies received incompetent and dishon­ executive director, said the smaller jobs than what the
on credit. est builders hampers Mis­ new database will allow law currently allows, we'll
Attempts to strengthen sissippi consumers who consumers to search for hear from smatJer builders
licensing and insurance re­ want to make informed violators by name. who don't want to comply,"
quirements have repeatedly decisions for one of life's Consumers already can Jones said. "You have a lot
failed in the Mississippi Leg­ biggest investments: a new check the site to find out of sympathy from the Leg­
islature. Only about half the or remodeled home. if a home builder or con­ islature for these folks who
states in the country have A diligent consumer can tractor is licensed. Both are smaller business people.
licen sing requirements, ac­ wade through copies ofpa­ databases are searchable It's not as if there is a lob­
cording to the National As­ per records on the state at­ by name or company. by out there for the dishon­
sociation of Home Build­ torney general's Internet The contractors board est builder. What happens
ers, which is neutral on the site to find builders charged urges consumers to check is, smaller builders would
licensing issue. 'with, or guilty of, home re­ for a license before hir­ prefer in many cases not to
The national association pair fraud. Consumers also ing someone to build or have to go through some of
says workman's compensa­ can search the Mississippi remodel. A license pro­ those steps.
tion insurance for builders is Better Business Bureau's vides some assurance that "The reason I a m not
almost universally required web site by bUllaer c~m­ a builder is competent and swayed by that argument
by states. Mississipp~ howev­ pany or name for com­ enables regulators to track is the cost to homeowners
er, is an exception. The state plaints filed with the non­ down builders who fail to and the general risk to the
does not require builders to profit organization_ perform. public when our standards
secure workman's comp or are not too high and we don't
general liability insurance. do anything on the front end
'We feel like as an industry has been unwilling to re­ resale. On the Coast, howev­ to make sure some of these
that it's hard to understand," quire insurance. er, home repair fraud after acts don't take place. That's
said Marty Milstead, executive Mississippi has licensing Katrina has prompted local­ a more persuasive argument
vice president ofthe Missis­ requirements,but profession­ ities to create lower thresh­ tome."
sippi Home Builders Associ­ al organizations believe the olds for licensing. Jones said he will propose
ation. "For heaven sakes, you threshold for a license should "The local permit offices a law in the upcoming 2010
have to take a test to drive a be lower than state law cur­ are doing what the state can't legislative session to at least
car. You have to have insur­ rently mandates. or won't do," said John Sul­ require builders to disclose
ance to drive a car, but not Under state law, a person livan, executive director of that they are uninsured.
to build a house." can build two houses a year the Mississippi State Board "I know it sounds tooth­
Milstead said the state without a license as long as ofContractors,whkh licens­ less," he said, "but we're at a
House of Representatives the house is not intended for es commercial contractors point where we have to take
and home builders. baby steps to get where we
"The reality is, we need a want to be."
Contractor board offers consumer tips
Atways check with the Mississippi State Board of
Contractors In Jackson to find out if a contractor is licensed.
The board says consumers should always get a signed
contract for home construction or repairs. Items that should
be included in the contract:
• The contractor's complete information, including the
company name, address, phone number and the full
name and license number of the builder/ contractor and
the sal~sperson .
• A detailed description of the work to be done,
Including specifics on materials such as color, quantity,
size, model number, brand name and product.
• 'the contract price, or the exact dollar amount the
contractor will be owed at the completion of a ll work
listed In the contract.
• A payment schedule should be the amount of work
completed, with retention (the percentage of each
payment or of the total jOb that you retain you until the
job is completed): should include all payments to be
made to subcontractors and suppliers as well.
• The start completion dates for work to be done that
allows for any reasonable delays, including a clause
that allows you to withhold payment if work slows down
for no apparent reason.
• A statement that all building permits and variances
required by your city, state and county will be obtained
by the contractor before work begins.
• A guarantee that the contractor carries liability
insurance and has workers' compensation coverage.
• A statement of warranty that addresses whether
labor and materials are guaranteed, and for how long,
with the names and addresses of the ·parties honoring
the warranties.
• A statement that the contractor is responsible for
cleanup and removal of debris and materials, as well
as instructions regarding pets, children or areas where
materials may not be stored.
• A right-to-cancel clause declaring the time frame
in which you may cancel after the contract has been
signed, along with any penalties that you may apply
when canceling after work has begun .
.- Miss. State Board olContractors