Housing and You…Spotting scams from those unscrupulous contractors

Mar 16, 2014 News

By Leonard Gildarie

We will take a break again this week from examining the National Building Codes as we turn to an important issue we have touched many times before. This is of course what has been described as “scams” perpetuated by dishonest contractors.
Since the start of this column, topping of the list of complaints we have been receiving would be bad experiences with contractors that have left hapless homeowners with unplanned expenses, poor quality work and unfinished structures.
So today, we will be looking at those complaints and, hopefully, learn something so that those precious dollars could be used for doing the actual work and not going to waste.
Speaking with homeowners, the scams come from all directions…General Contractors, Labourers, Electricians, and other tradesmen and professionals.

One the most common complaints is that of the contractor taking the deposit and not doing the work or even running away.

Again, I will have to insist that there are decent folks out there, with even some crooked homeowners.
However, an absence of enforcement has encouraged a ‘wild west’ situation.
My research, with help from readers who have been calling or sending emails, indicates that one of the most common complaints is that of the contractor taking the deposit and not doing the work or even running away. In most cases, they would perform so badly at the foundation stage of the structure and refuse to correct the works, forcing the homeowner to let them go.
Another area to be on the lookout for is probably, for me, the most prevalent. You want to build and after getting three quotations from different contractors, you settle for the cheapest. Not a good idea! There is an old saying…if something seems too good to be true, it probably is…
Many people are now figuring out that the “cheap” contractor more than likely went low to get the job. Somewhere down the line, he will be asking for more. If you don’t believe me on this one, just ask homeowners how their budget went and whether they did not end up paying more to their contractors. Invariably, the embarrassing answer would be yes.
Some contractors have been known to deliberately milk the project, by moving slowly, forcing you to pay more overtime. Pay attention to whether work is being pushed at a pace that is acceptable. Time is money, they say.
Another way contractors make money is one of the oldest in the book. Most homeowners I know are building for the first time. They would follow the contractor’s advice and head to a particular hardware store. A high price is charged and the contractor ends up getting a relatively significant kickback as a result of your business with that supplier. It happens.
After warnings, I decided to purchase materials for my new home, shopping around at different hardware stores. I did not leave that up to the contractor. I think that you should, too. His job is to build…yours is to manage.
I have also heard of contractors telling their clients to order a specific amount …”over-purchasing”…then taking back the extras later to the supplier.
A little something on the side for them?
Another area is what is known as price skimming. The contractor, in his estimate, would increase the price so as to maximize the profits. Now, this is easy, as in Guyana we don’t build by square foot, there is little that we can do to ascertain how we are being robbed. The contractor calls a price and we accept. What is the method used to reach those labour costs? It is a mystery.
Persons building should also pay attention to what the contractor offered from the inception. He tells you that you’re getting a house that is 40 feet x 40 feet and then when you are ready to lay the inside walls, he says he never agreed to wooden walls. Rather, he agreed to concrete walls. You will have to pay more, right?
Look out also for cases when work is so bad or structurally flawed that it has to be repaired. It could be because of a deliberate act or inexperience. I have pointed out that the absence of written contract that can be enforced will place you as the homeowner in a defenceless position.
Some contractors when bad work is done would blame others, including the workers, and even the quality of materials for it. I remember that one incident in which my contractor had eventually taken all the money that he asked for. He still had a week more to go of unfinished work and demanded $100,000-plus more. I had no money and my mother paid that bill. I had no choice. Intimidation and threats!
You should also pay attention to your materials… that none is being stolen. This is pretty common too. Put some security measures in place to protect your property.
Lastly, and I admit I may be missing some tips, look out for instances where the contractor tells you to include some other works that either may look good or is necessary. In all likelihood, he wants some more work, and obviously you will have to find some more money.
Much love and don’t be scammed. Please continue to send those valuable comments to [email protected] or call me weekdays on 225-8491.