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Contractor licensing; Angie's list gets tough on contractors

  
  
  
  

Over the past 3 months I have been reading the Angie's list monthly magazine and was amazed at all the contractor advertisements that were in violation of the Mass Home Improvement Law. The Mass Home Improvement Law explicitly states that contractors must publish their registration number in all advertising. One would expect that Angie's list would not allow contractors who violate the law to advertise in their publication. I was thinking that it was time to expose this matter due to the dangers posed to homeowners who hire what they think is a good company based on the Angie's List.

Well I suppose their ears were ringing because this months magazine is devoted to the massive problems associated with contractor licensing throughout the country. The articles are eye opening and all contractors should take notice that the tide is turning in USA. The public is learning that hiring a contractor without the proper credentials, is not a risk worth taking. If you are not sure of the rules go to the state web site and learn what is needed to be in complete compliance. The only logical choice is to be a completely legal business. In our contractor coaching seminars we teach clients to obtain the proper licensing. The List has a huge following and should be applauded for bringing this long overdue issue to the forefront. Angie states in her article that all contractors will have 60 days to comply with the law or they will lose their eligibility to advertise with the List.

The articles cover a gamut of topics regarding the inconsistency of licensing and enforcement. In California they have strong enforcement, where in Massachusetts and Ohio enforcement is sparse, due to lack of funding.  One article covers a contractor who says licensing is a joke and a ruse to take his money! Do you think an educated homeowner will hire him?

In Florida, Jay Carlson, President of the Florida Home Builders Association, is quoted as saying "unlicensed contractors put homeowners at personal and financial risk. Consumers often become victims and the livelihood of the law abiding, licensed contractors is threatened." 

The tide is turning in favor of prosecuting contractors who chose to be illegal. With the recession culling out the fly by night contractors and increased consumer awareness of contractor credentials, the good guys will prevail to serve the marketplace. Educated legal contractors and remodelers are using this down to focus on learning how to make their businesses better. Many are taking courses, working with a contractor business coach and implementing systems. 

Next licensing issue coming in 2010; the new EPA RRP lead paint law requiring all contractors who work on pre-1978 homes to be certified by the EPA. Historically no one likes increased regulation. However these new focuses may be just what our industry needs to reach a level of professionalism so lacking in the current remodeling and home improvement industry.

mark the coach

Comments

Are you aware of any studies that demonstrate a correlation between licensing requirements for contractors and quality or professionalism? I have worked in a state that requires licensing and one that does not, and did not perceived a difference.
Posted @ Sunday, September 06, 2009 8:43 AM by Geoff
Hello Geoff 
 
 
 
I would think that one more of the major trade magazines have written such an article. In 2005 Qualified Remodeler published an article as a result of surveying hundreds of contractors. The article was in the July 2005 30th anniversary issue. This report concluded that consumers would not refer or again use approximately 50% of the contractors they hired for a project.  
 
The successful contractors excelled at communication, cleanliness, craftmanship and more. 
 
The report references the National Association of Consumer Agency Administrators which reports on the top consumer complaints. The most complained about industries are home improvements and automotive sales and services. 
 
This report does delve into to some of the characteristics of why home improvement contractors are poorly viewed. Here is the description from the 2005 NACAA report on the number one complained about industry; 
 
From 2005 NACAA report 
 
1. Home Improvement: In second place last year, home improvement contractor and repair 
 
complaints have consistently been listed within the top five complaint categories for the past 
 
five years. Typically high in years with numerous weather conditions affecting the nation’s 
 
homeowners, home improvement complaints usually include failure to use a written contract, 
 
abandonment or refusal to complete work, workmanship issues and noncompliance with 
 
building code requirements. (See Appendix for past consumer complaint charts for 1999-2004.) 
 
Two of the reasons for complaints, failure to use contracts and follow building code requirements. 
 
When licensing is available and properly enforced, it tends to produce a contractor who is on a higher level than those who are not. This does not mean that contractors who are not licensed, do poor work. However, the odds are that lack of licensing is a potential sign that there may be other issues with a contractor that warrant careful scrutiny. 
 
Hope this helps.  
 
Posted @ Sunday, September 06, 2009 9:01 PM by Mark Paskell
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