Beware Of Fraudulent Contractors After Katrina

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Last Updated: Tue, 8 Jul 2008 09:56 PM PST

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Beware Of Fraudulent Contractors After Katrina
By David Pennington Thu, 8 Sep 2005, 10:48 PST

In the wake of Hurricane Katrina, there will be billions of dollars spent on construction in the affected areas in Mississippi, Louisiana, Alabama, and Florida.

Massive hurricanes are notorious for leaving destruction behind, but they are also known for dragging in every con-artist contractor within a five hundred mile radius. What should homeowners do to protect themselves from these contractors and find qualified contractors?

First, only use contractors licensed in your state.
Ask for his number and check it out with the state licensing board. While some states licensing requirements are lax, there is still a procedure to aquire a license which takes time. This eliminates the guy that only has a hammer, truck, and business card.

Second, make sure that the contractor has general liability and workers compensation insurance.
Get a certificate of insurance from his agent. Don't rely on the copy he has in his truck. This not only protects you, as the owner, but it also establishes that the contractor at least is a legitimate business.

Third, avoid unsolicited contractors.
If they come knocking on your door, beware. There is a reason they are looking for work.

Fourth, ask for, and check, references.
The most important reference is from a material supplier. Get several. Call large local vendors that he did not list, and ask for a reference. They will gladly let you know about his character. You will learn a lot about the contractor from this list. Next, get client references, even though I personally don't put much faith in these because they can easily be fraudulent.

Fifth, when you are checking their license number with the state licensing board, ask for the number of registered complaints.
There probably will be some. Most contractors have a few. Look for the ones that are reoccurring. They will indicate a problem.

Lastly, check your gut instinct.
If something just doesn't feel right, go elsewhere. Most of us have the ability to tell when something is not quite right!.

And don't worry, there are quite a few qualified contractors to choose from.

About the Author:
David Pennington is the Owner of The Pennington Group, LLC, a Mississippi real estate development and construction firm. He is a Mississippi Certified Professional Builder, and holds a Bachelor's Degree in Civil Engineering and Construction Management

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