In this episode of Joe Knows Better, Joe Ducey and Michelle Marin of the Better Business Bureau (BBB) host Tom Cole and Cindy Casos, the Director and Assistant Director of the Arizona Registrar of Contractors (ROC), to discuss consumer protection when hiring contractors. The experts stress that homeowners should never pay cash and must ensure any hired contractor is licensed within the scope of work being performed. They highlight the rigorous licensing process, which includes verifying experience and securing a bond, and warn listeners about common scams, particularly those targeting seniors and those involving "excess materials." The conversation strongly differentiates between licensed and unlicensed contractors, noting that licensed entities provide consumer safeguards, including access to the Residential Contractor's Recovery Fund for primary residences, which offers compensation for issues like abandonment and poor workmanship. Finally, the guests provide a checklist of protective steps for consumers, emphasizing getting multiple bids, scrutinizing contracts, and avoiding high-pressure sales tactics.
Key takeaways
- Never pay cash: This is the best defense against scams and fraud, as cash payments provide no traceable record or consumer protection.
- Verify licensing and scope: Always use the ROC's website (azroc.gov) to confirm a contractor is licensed and that their license covers the exact scope of the job.
- Scam red flags: Be highly suspicious of contractors who request cash, offer deep discounts with "excess materials," or pressure you into signing a contract immediately.
- The ROC's role: The Arizona Registrar of Contractors handles licensing, investigates complaints (both licensed and unlicensed), and can package evidence of fraud against unlicensed individuals for prosecution.
- The recovery fund: Homeowners who hire a licensed contractor on their primary residence have access to the Residential Contractor's Recovery Fund for claims of abandonment or poor workmanship, with a limit of $30,000 per project.
- Contract must-haves: A legal contract must be in writing, have no blank spaces, and include nine essential elements, notably the ROC's contact information.
- Protecting a workmanship claim: If you suspect poor workmanship, do not hire another contractor to fix it before the ROC inspector reviews the original work, or the case will be closed.
- Get multiple bids: Obtain at least two or three licensed, comparable bids to ensure the price is fair and the scope of work is clear.
- Upfront payment: Avoid giving a substantial down payment; it should ideally be less than 20% of the total cost. Use a credit card over cash for better protection.
- Building confidence program: The ROC offers this program for homeowners who have a signed contract and are mid-project but feel concerned about its progress or the contractor relationship, without immediately filing a formal complaint.
